Submitted by Fox First at Ten on September 12th
By DAVE CARPENTERAP Personal Finance Writer
CHICAGO (AP) - Fidelity Investments has issued new savings guidelines suggesting that workers save at least eight times their final salary in order to meet basic income needs in retirement.
The nation's largest 401(k) administrator released the set of savings targets Wednesday. It calls them a rule of thumb to help employees become more active in their retirement planning.
Fidelity says employees should aim to save an amount equivalent to their annual salary by age 35. They should then plan to have saved twice their salary by 40, four times' salary by 50 and five times' salary by 55.
While many will need more, Boston-based Fidelity says saving eight times' income by age 67 should allow average workers to replace roughly 85 percent of their income in retirement.
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