Where do the target savings multiples come from?

They are inspired by widely cited planning guidelines that publish age-based savings multiples. We encode a smoothed curve that roughly follows those benchmarks, but this tool does not replicate any specific provider’s proprietary table exactly.

Should I use gross or net income for the benchmark?

Most savings-multiple guidelines are expressed as multiples of gross income because they are tied to pre-tax salary levels. If your income is highly variable, you might use a typical or average year as your input.

I have a pension and strong Social Security. Do I still need to hit the target multiple?

Not necessarily. Large guaranteed income streams can meaningfully reduce the amount of savings you need. In that case, you might treat the benchmark as conservative and be comfortable with a lower multiple, especially if you plan to spend less than your current income in retirement.

What if I plan to retire much earlier or later than 65?

These benchmarks implicitly assume a fairly typical retirement age. If you are aiming for early retirement (for example, in your 50s) or much later, you may want to adjust your personal targets higher or lower and complement this check with more detailed modeling.

How often should I revisit this calculation?

Revisit annually or whenever you have a major change in income, savings, or retirement plans. Watching the gap shrink (or grow) over time can help you judge whether your savings rate is keeping pace with your goals.

finance calculator

Is Your Retirement on Track?

Benchmark your retirement readiness by comparing your current savings to age-based savings multiples of your annual income.

Results

Target savings multiple: 1.00
Target savings amount: $85,000
Gap to target (can be negative if ahead): -$35,000
On track flag: 1

How to use this calculator

Enter your current age in years. Use your actual age rather than rounding to the nearest decade so the calculator can interpolate accurately between benchmark points.
Enter your current annual income before tax. Many rules of thumb assume you maintain a similar inflation-adjusted lifestyle in retirement, so your savings target scales with this figure.
Enter the total current value of all accounts you have earmarked for retirement: workplace plans (401(k), 403(b), 457), IRAs, and taxable investment accounts you genuinely expect to use for retirement spending.
The calculator looks up an age-based target savings multiple and multiplies it by your income to derive a target savings amount.
We subtract your current savings from the target to compute a gap. If the gap is negative, you are ahead of this particular benchmark; if positive, it is the amount you would need to close to hit the guideline.
Review the target multiple, target savings amount, and gap, along with the on-track flag, and use them as a conversation starter for how much to save going forward rather than as a strict pass/fail judgment.

Inputs explained

Current age: Your age today in whole years. The calculator uses this to pick an age-appropriate savings multiple from a benchmark curve that roughly ramps from low multiples in your 20s to high multiples near retirement.
Annual income: Your current annual gross income before taxes. This includes salary, bonus, and self-employment income that supports your lifestyle. The target savings is expressed as a multiple of this income to keep the rule of thumb simple and scalable.
Current retirement savings: The total balance of accounts you have set aside for retirement—401(k), 403(b), 457, IRAs, HSA funds you realistically plan to use for retirement, and taxable brokerage accounts that are earmarked for future retirement spending.
Target multiples: Underlying age-based savings multiples inspired by popular planning guidelines (for example, around 1× income by mid-30s, several multiples by mid-career, and roughly 8–10× by typical retirement age). These benchmarks are approximate and not guarantees.

How it works

Many financial planners publish tables suggesting how much you might want saved at different ages as a multiple of your annual income—for example, around 1× income by your mid-30s, 3× by your mid-40s, and roughly 8–10× by typical retirement age.

This calculator encodes a smooth version of that table and interpolates between age points. For a given age, it looks up or interpolates a target savings multiple of your current income.

Once it has the target multiple, it computes a target savings dollar amount as: Target savings = Annual income × Target multiple.

You enter your current age, annual income, and total retirement savings (across 401(k), IRA, and other accounts earmarked for retirement). We then compare your current savings to the target amount.

The outputs include: the target multiple for your age, the corresponding target savings amount, the gap (which can be negative if you are ahead), and an on-track flag (1 if your savings meet or exceed the target, 0 otherwise).

Because this is a benchmark rather than a personalized plan, it ignores details like exact retirement age, investment mix, inflation path, and non-portfolio income—its goal is to give you a quick gut check and a starting point for deeper planning.

Formula

Target multiple (age) ≈ f(age) from a benchmark curve\nTarget savings = Income × Target multiple\nGap = Target savings − Current savings\nOn-track flag = 1 if Current savings ≥ Target savings, otherwise 0

When to use it

Doing a quick retirement readiness check when you do not yet have a detailed financial plan but want to know if you are broadly in the ballpark.
Comparing where you stand today versus where a typical benchmark suggests you might be for your age and income level.
Tracking your progress from year to year by updating your age, income, and savings and watching the gap to target shrink as you save more.
Starting a conversation with a partner or advisor about whether to increase retirement contributions, adjust investment risk, or revisit your planned retirement age.
Sanity-checking aggressive or conservative savings plans: if you are far ahead of the benchmark, you may have more flexibility; if you are far behind, it may highlight the need for changes.

Tips & cautions

Treat this benchmark as a starting point, not a verdict. Two people with identical age, income, and savings can still have very different retirement needs based on lifestyle, housing, location, health, and family situation.
If you have pensions, strong Social Security benefits, or other guaranteed income, you may not need as high a savings multiple as someone who expects to rely almost entirely on their portfolio.
If you plan to retire earlier than a traditional age or expect to support a more expensive lifestyle in retirement, you may want to target a higher multiple than the benchmark suggests.
Starting early is powerful: if you are behind the curve at a younger age, increasing your savings rate even a few percentage points and letting compounding work for you can dramatically improve your position over the next decade.
Use this calculator alongside more detailed tools (like retirement income or withdrawal calculators) to see how your savings might translate into actual spending power, not just a lump sum target.
Relies on high-level savings-multiple rules of thumb; it does not model actual investment returns, inflation, taxes, or spending patterns over time.
Assumes your current income is a reasonable proxy for the lifestyle you want in retirement; this may not hold if you expect major career, location, or lifestyle changes.
Does not factor in Social Security, pensions, annuities, or home equity explicitly. People with substantial guaranteed income or assets outside investment accounts may need different targets.
Uses a generalized age-based curve that may not reflect your specific retirement timing (for example, very early or very late retirement plans).
Not a substitute for personalized retirement planning with detailed cash-flow projections and investment assumptions; it is best used for quick benchmarking.

Worked examples

Mid-30s professional checking progress

Age 35, income $85,000, current retirement savings $120,000.
Benchmark target multiple around this age might be ~1× income.
Target savings ≈ 1.0 × 85,000 = $85,000.
Current savings ($120,000) exceed the target, so gap ≈ −$35,000 and on-track flag = 1. Interpretation: you are ahead of this rule-of-thumb benchmark.

Early 40s saver slightly behind

Age 42, income $100,000, current savings $150,000.
Benchmark multiple might be around ~2× income at this age.
Target savings ≈ 2.0 × 100,000 = $200,000.
Gap ≈ 200,000 − 150,000 = $50,000; on-track flag = 0, indicating you are below the benchmark but within reach if you increase savings.

Late 50s approaching retirement

Age 58, income $120,000, current savings $700,000.
Benchmark multiple near retirement might be around ~7× income.
Target savings ≈ 7.0 × 120,000 = $840,000.
Gap ≈ 840,000 − 700,000 = $140,000, suggesting you may need to save more, delay retirement, or lean on other income sources to fully match this guideline.

Deep dive

Use this retirement-on-track calculator to benchmark your current savings against an age-based target expressed as a multiple of your income. Enter your age, income, and total retirement savings to see a target multiple, the corresponding target savings amount, your gap, and a simple on-track flag.

The tool is built around widely used savings-multiple guidelines and is designed to give you a quick read on whether you are roughly on pace, ahead, or behind—not to replace a full retirement plan. Use it as a starting point for decisions about contribution rates, retirement age, and investment risk.

FAQs

Where do the target savings multiples come from?: They are inspired by widely cited planning guidelines that publish age-based savings multiples. We encode a smoothed curve that roughly follows those benchmarks, but this tool does not replicate any specific provider’s proprietary table exactly.
Should I use gross or net income for the benchmark?: Most savings-multiple guidelines are expressed as multiples of gross income because they are tied to pre-tax salary levels. If your income is highly variable, you might use a typical or average year as your input.
I have a pension and strong Social Security. Do I still need to hit the target multiple?: Not necessarily. Large guaranteed income streams can meaningfully reduce the amount of savings you need. In that case, you might treat the benchmark as conservative and be comfortable with a lower multiple, especially if you plan to spend less than your current income in retirement.
What if I plan to retire much earlier or later than 65?: These benchmarks implicitly assume a fairly typical retirement age. If you are aiming for early retirement (for example, in your 50s) or much later, you may want to adjust your personal targets higher or lower and complement this check with more detailed modeling.
How often should I revisit this calculation?: Revisit annually or whenever you have a major change in income, savings, or retirement plans. Watching the gap shrink (or grow) over time can help you judge whether your savings rate is keeping pace with your goals.

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This retirement-on-track calculator uses generalized savings-multiple benchmarks and is intended for educational and planning purposes only. It does not constitute financial, investment, or tax advice, and it cannot account for your full financial picture, risk tolerance, or retirement goals. Before making major decisions about retirement savings, investments, or timing, consider consulting a qualified financial professional and using more detailed planning tools.