When it comes to retirement savings, many people only save to their company match percentage. I constantly tell those people to not use that as a marker. You are not doing yourself any favors. Dollars that are being deducted for Federal Income Tax could be going into your retirement instead. Let’s look at the average retirement savings by age:
According to Fidelity, the following is what the average American has saved for retirement.
20 to 29: $15,000
30 to 39: $50,800
40 to 49: $120,800
50 to 59: $203,600
60 to 69: $229,100
It is important to think about your many years of life in retirement as you are saving. Put the money in your pocket vs. that of the Federal Government.