Great article, Greg. More of what I liked about it:
Quote:
Fidelity lays out the steps savers need to reach their 8x level. It means contributing 6 percent a year to a workplace savings plan and raising that total 1 percentage point each year until you reach 12 percent. The assumption is that employers will add 3 percent in matching funds.
In its calculation, Fidelity factors in a 1.5 percent annual salary increase and average portfolio growth of 5.5 percent a year.
“The two factors that have the greatest impact on retirement savings over time are starting early and saving consistently,” said MacDonald. He added: “Having age-based targets provide benchmarks to help retirement savers stay on track toward their ultimate goal.”
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In total, it seems like reasonable assumptions and actually made me breath a little easy based on where I currently am!