How much of your salary you've already saved
0 0.5x 1x 2x 2.5x 3x
AGE Percentage of your annual salary you should be saving
30 11% 8% 5% 0% 0% 0%
35 14 11 8 3 0 0
40 19 15 12 6 3 0
45 26 22 19 12 8 5
50 38 34 30 21 17 13
55 64 58 52 40 34 28
Notes Assumes 3% inflation rate, 7% rate of return, retirement age of 65, and 70% of pre-retirement income is replaced. Portfolio consists of 60% stocks, 30% bonds, and 10% cash.
Source T. Rowe Price.
Published: BusinessWeek, 29 September 2003, page 133.