Retirement Savings by Income
written by Mike Ballew July 16, 2023

Do you know how much retirement savings you need? If you want to maintain the same lifestyle in retirement that you enjoy while working, this is an important question.

J. P. Morgan has crunched the numbers and generated a table with the answers. While this goes against everything we preach about not using one-size-fits-all solutions, it’s better than nothing.

Retirement Savings by Income

Both age and annual income factor into the study. Obviously, the older you are, the more savings you need. The table is based on gross household income. If it’s just you, then your income. If you have a spouse or partner, use your combined income.

AGE $50,000 $80,000 $100,000 $150,000 $200,000 $250,000 $300,000
35 0.9 1.6 1.5 2.2 2.7 3.0 3.2
40 1.4 2.3 2.5 3.3 3.8 4.2 4.5
45 2.0 3.0 3.5 4.5 5.2 5.6 5.9
50 2.6 3.8 4.7 5.9 6.6 7.1 7.5
55 3.3 4.8 6.0 7.4 8.3 8.8 9.3
60 4.1 5.7 7.4 8.9 9.9 10.5 11.1
65 4.5 6.2 8.3 9.9 10.9 11.6 12.2

The table provides retirement savings by age and income expressed as income multipliers. To find your target savings, multiply your household income by the multiplier that most closely aligns with your age and household income.

For example, if you are 55 years old and your annual household income is $150,000, you should have $1,110,000 in retirement savings (7.4 x $150,000 = $1,110,000). Read on to learn more about the assumptions used to generate the table.


J.P. Morgan uses a number of assumptions to arrive at these income multipliers. One of the most crucial assumptions is the length of your retirement period. The longer the retirement period, the more money you need. The table assumes you will retire at 65 and live 35 years after you retire. 35 years is an uber-conservative retirement period. 65 + 35 = 100. How many people do you know live to 100 years of age?

Average U.S. life expectancy hovers around 80. While it would be nice to live to 100, it is highly unlikely. Less than 1% of the U.S. population reaches 100 years of age. A more reasonable assumption would be 90, and even that is very optimistic/conservative.

Other assumptions include:

  • Pre-retirement savings are comprised of 60% stocks, 40% bonds, with 6.7% annual returns.
  • Post-retirement savings are comprised of 40% stocks, 60% bonds, with 6.0% annual returns.
  • Retirement savings rate is 10% of gross annual income (including company match, if any).

You might wonder why the multipliers increase so much with household income. It’s due to the progressive nature of Social Security. The higher your income, the lower the percentage Social Security replaces.


These types of tables can get you in the ballpark, but if you really want to know how much you need to save and when you can retire, there is a better way. Financial simulation programs like Eggstack provide more realistic answers that are tailored to your individual circumstances.

Eggstack considers specifics such as your state income taxes, retirement age, longevity, planned home purchases, pensions, annuities, business and rental income and so much more. If you want more than a one-size-fits-all solution, head over to Eggstack and start your free plan today.

Photo credit: Pixabay The Eggstack Blog will never post an article influenced by an outside company or advertiser. Our mission is to help you overcome uncertainty about retirement planning and inspire confidence in your financial future.
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