Fidelity Retirement Savings Benchmarks by Age
Fidelity uses income multiples to define retirement savings goals at each age. By age 30, the target is one times your annual salary, rising to three times by 40, six times by 50, eight times by 60, and ten times by 67. These benchmarks assume a retirement age of 67 and a replacement rate of roughly 45% of pre-retirement income, based on guidance published by Fidelity Investments and updated in their latest retirement savings study.
Fidelity also tracks median and average balances across its workplace retirement accounts. As of the most recent data, the average 401(k) balance for participants in their 30s is approximately $50,000, while those in their 50s average around $200,000. The median balances are lower, reflecting a long tail of smaller accounts. These figures are drawn from Fidelity's annual report on workplace retirement savings, which provides a snapshot of participant balances across age brackets.
Target-Date Fund Allocation and Glide Paths
Fidelity target-date funds adjust stock and bond exposure based on the retirement year. A 2025 target-date fund holds roughly 70% to 80% in equities, while a 2055 fund is about 90% equities and 10% bonds. The glide path gradually shifts toward fixed income as the target date approaches, reducing equity exposure by a few percentage points each year to manage sequence-of-returns risk.
Fidelity offers several target-date series, including Fidelity Freedom Index, Fidelity Freedom, and Fidelity Puritan, each with a different equity glide path. The Fidelity Freedom Index 2055 Fund, for example, follows a passive indexing approach with low expense ratios. Investors can compare allocations and fees across these series to match their risk tolerance and retirement timeline.
Retirement Income Goals and Withdrawal Strategies
Fidelity recommends replacing about 45% of pre-retirement income through a combination of Social Security, pensions, and savings withdrawals. A common rule of thumb is the 4% initial withdrawal rate, adjusted for inflation each year. Fidelity's income replacement framework also factors in healthcare costs, which can consume a larger share of retirement spending for older adults.
Fidelity's retirement income calculator and tools on its website help estimate how much to save annually to reach a specific income goal. These tools use assumptions about investment returns, inflation, and life expectancy. For broader context on retirement security and savings trends, the U.S. Census Bureau and the Bureau of Labor Statistics publish related data on household retirement income and asset holdings.