Fidelity Unveils Age-Based Retirement Saving Goals

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In a groundbreaking move that shifts away from conventional financial wisdom, Fidelity has proposed that planning for retirement isn’t strictly about saving a specific dollar amount. This fresh perspective on retirement savings, as shared by Michael Shamrell, vice president of Fidelity’s workplace investing thought leadership, could change the way individuals approach their financial future. Shamrell told Fox News Digital that Fidelity aims to promote a mindset that encourages saving for retirement, rather than intimidating individuals with large dollar goals that may seem unattainable and discouraging.

Fidelity’s radical approach to retirement planning stems from the two most frequently asked questions by their clients: How much money is needed for retirement, and are they on track to reach that goal? In response, Fidelity has developed a unique set of milestones that deviate from traditional dollar-based guidance. Instead, these guidelines focus on saving multiples of an individual’s salary at various age checkpoints. This approach takes into account the diverse living costs across different geographical locations, offering a more personalized and realistic roadmap for individuals on their journey toward retirement.

Rethinking Retirement: Fidelity Offers New Savings Milestones

Fidelity, a leading financial services provider, has recently provided fresh insights on retirement savings, moving away from the traditional dollar-based approach. Michael Shamrell, vice president of Fidelity’s workplace investing thought leadership, stated in an interview with Fox News Digital that the company aims to provide guidance that encourages people to save for retirement, without the discouragement that a daunting dollar target may create.

Guiding Through Salary Multiples

According to Shamrell, Fidelity has noticed that the two most common questions from clients are: ‘How much money do I need for retirement?’ and ‘Am I on track to reach my retirement goal?’ In response, the company has published new savings milestones that transcend traditional dollar-based guidance. The new guidance is based on multiples of the individual’s salary, rather than a fixed dollar amount.

This approach considers the varying cost of living in different geographical areas and offers a more realistic and personalized plan for retirement savings. Shamrell explained that these guidelines aim to help individuals understand what they need to save as a multiple of their salary.

By age 30, it’s recommended that you save at least 1x your annual salary. This recommendation increases to 3x by age 40, 6x by age 50, 8x by age 60, and 10x by age 67.

Retirement Saving: A Marathon, Not A Sprint

The new Fidelity guidelines also emphasize that retirement saving is a long-term process. "Life happens, jobs come and go, the economy fluctuates, but the best advice we can give is to take a long-term approach," Shamrell stated.

He advised against making changes to your savings strategy based on short-term events. Instead, he encouraged individuals to ensure that any changes align with their long-term strategy. If one is facing challenges meeting these savings milestones, the answer could be finding ways to catch up, rather than despairing.

Multiple Modes of Retirement Income

Shamrell also highlighted the importance of considering additional modes of retirement income. Working longer or part-time in retirement, understanding the role of Social Security, and assessing any existing pensions are all factors that can contribute to retirement income.

For those nearing retirement and feeling anxious, he recommends taking a step back to plan. He suggests looking at all the different sources of potential retirement income, and even considering guaranteed income options for the retirement period.


Fidelity’s new approach to retirement savings is an interesting move away from traditional dollar-based goals. The focus on salary multiples offers a more personalized and flexible approach that could better accommodate varying costs of living and individual circumstances. It’s critical to remember that retirement savings is a long-term commitment, and it’s essential to keep your strategy aligned with your long-term goals. Regardless of your age, remember that reaching retirement goals won’t happen overnight, and it’s crucial to stay the course, irrespective of short-term market fluctuations.

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