40+ and No Retirement Savings

podcast Feb 10, 2022

Fidelity’s rule of thumb for how much you should have saved based upon your age is as follows:

 3   X Salary @ 40 years old

 6   X Salary @ 50 years old

 8   X Salary @ 60 years old

10  X Salary @ 67 years old

However, the amount of money needed for retirement savings depends upon a variety of factors.

Retirement Location

Where you live can make a BIG difference. Living in a tax friendly state can stretch those retirement dollars even further. Check out Kiplinger's list of tax friendly retirement states below. 

Here is a link to Kiplingers' Retirement Friendly States 

Retirement Lifestyle

Another factor that can make a significant difference is your retirement lifestyle. 

What type of lifestyle do you desire in retirement? Do you fantasize about traveling all over the world during retirement? Will you continue to work part-time perhaps doing what you love? Start a business? Or just spend lazy days watching sunsets? 

As you can see, there are a number of factors that should be considered when trying to determine how much is enough for retirement. 

Remain Optimistic

If you feel you have not saved enough or if you have not started saving. Don't become discouraged or fearful. 

Instead focus on what you CAN control now.


Tips To Start Your

Retirement Savings Journey

Check Your Mindset 

Our beliefs around money can impact our ability to save and invest. Many of us have tethered ourselves to beliefs that sabotage our ability to manage money effectively. 

What thoughts are running through your mind about your finances? Do they help? or hinder your ability to reach your financial goals? 

Challenge your negative beliefs. They may have had a nugget of truth at some point in time, but may no longer be applicable today. So release it. 

Remember this...regardless of where you are on your financial journey, YOU CAN take control of your money and improve your financial situation. 

Mindset is everything! Developing the right mindset is key as you embark upon this new financial journey. 

Assess Where You Are  

Get a clear picture of where your money is going. Before you start any journey, you will need a starting point.

It’s like taking a trip. When you take a vacation, you know where you want to go, you know your destination. But in order to reach that destination, you need to know where you are today.  

Download the Financial Freedom Spreadsheet for the Show Me The Money Exercise. 

Examine Your Spending

Take a look at your expenses to determine if there is an opportunity to reduce it. 

Ask yourself is it necessary? Or can I live without it to achieve financial independence? 

Build An Emergency Fund

Before you can start saving for retirement, I strongly recommend having emergency savings in place. There are steps to building financial independence and this is the first one. 

Here are resources to increase cash flow for those who feel their budgets are stretched and cannot find additional resources to save.  

Side Hustle Income

Side Hustle Pro 

Side Hustle Nation

 I Like to Dabble  

 Maximize Your Retirement Savings

 Where to you allocate your new found money? 


Workplace Retirement Accounts

If your employer offers retirement account such as 401(k), 403(b) or 457(b) work towards investing the maximum amount the law allows.

If you can't contribute the maximum, invest as much as you can. At a minimum,  invest up to your company’s contribution match if they offer one.

Money invested in your retirement account grows tax deferred until it is withdrawn.

Individual Retirement Account

If your company does not provide a retirement account, create your own. 

You have two options to choose from you: Traditional IRA or Roth IRA

The best one for you will be dependent upon your unique financial situation.   

How Much Do I Need? 

I have provided a link to a Vanguard's retirement calculator to help you determine how much money you should be saving for retirement based on your salary; how much you have saved; and your estimated social security benefits.