I was thirty-two when I realized I had $8,000 saved for retirement. Eight thousand dollars. After eight years of working. I did the math. At that rate, I would have roughly enough to buy a used Honda Civic and a tank of gas by age sixty-five. The panic was real. I remember sitting in my car in the King Soopers parking lot, staring at my 401k statement, wondering if I should just drive to Mexico and start over.
Here is the thing about retirement savings. The internet loves to tell you that by thirty you should have one times your salary saved. By forty, three times. By fifty, six times. By sixty, eight times. These are the Fidelity benchmarks. They are also completely meaningless for most people I work with. Because most people I work with are not making six figures. They are making $45,000 a year as a teacher. They are making $38,000 as a CNA. They are making $52,000 as an admin assistant. Telling them they should have $150,000 saved by forty is not motivating. It is cruel.
So let me give you a different framework. One that actually works for real people in Denver who are just trying to survive.
The only number that matters is your savings rate. Not your total balance. Not your age. Your savings rate. If you are saving 15% of your income consistently from age twenty-five to sixty-five, you will almost certainly be fine. The math is robust. Fifteen percent, invested in a diversified portfolio, historically grows to about ten to twelve times your final salary over forty years. That is enough to replace 80% of your income in retirement.
But what if you are starting late? What if you are forty and you have $20,000 saved? What if you are fifty and the number is $80,000? The answer is not panic. The answer is math.
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Retirement Savings Calculator
Project your nest egg and see if you're on track for the retirement you want.
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If you are forty with $20,000 saved and you make $55,000 a year, you need to save 20% to 25% of your income going forward. That is aggressive. It is also doable if you make some changes. Maybe you get a roommate. Maybe you drive a cheaper car. Maybe you pick up a side hustle for five years. It is not comfortable. But it is possible.
If you are fifty with $80,000 saved and you make $65,000, you need to save 30% or more. That is extremely aggressive. You might need to work until sixty-eight or seventy. You might need to downsize your home. You might need to move to a lower-cost area like Colorado Springs or Pueblo. These are hard choices. But they are better than the alternative, which is retiring with nothing and hoping Social Security covers it. Spoiler: it will not.
The retirement savings calculator on our site takes your actual numbers and shows you the truth. Input your age, current savings, annual income, and desired retirement age. It projects your nest egg based on different savings rates. It shows you the gap between where you are and where you need to be. It is not always pretty. But it is always honest. And all your data stays in your browser.
I also want to talk about Colorado PERA because a lot of my clients are state employees. Teachers, state workers, university staff. PERA is a defined benefit plan, which means you get a guaranteed monthly payment in retirement based on your years of service and highest average salary. It is actually a pretty good deal if you stay in the system for twenty-plus years. But if you leave state employment early, the benefit is much smaller. And PERA alone is rarely enough. Most PERA retirees still need supplemental savings.
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Savings Goal Calculator
Figure out exactly how much to save each month to hit your target on time.
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The retirement savings calculator can factor in PERA or Social Security estimates to give you a more accurate picture. If you are a teacher with fifteen years in PERA and you plan to work twenty more, the calculator shows you what PERA will provide and how much additional savings you need. It is eye-opening. Most teachers are shocked by how much they still need to save on their own.
The savings goal calculator is useful here too, especially for specific retirement targets. Maybe you want $500,000 by age sixty. Maybe you want to pay off your mortgage before you retire. Maybe you want a travel fund. Whatever the goal, the calculator breaks it down into monthly contributions.
And the 50/30/20 calculator helps you find room in your current budget for retirement savings. If your needs are at 60%, your wants at 25%, and your savings at 15%, you are on track. If your savings are at 5%, you need to make changes. The calculator shows you exactly where to look.
One last thing. Do not let perfect be the enemy of good. If you cannot save 15%, save 10%. If you cannot save 10%, save 5%. If you cannot save 5%, save $50 a month. Something is always better than nothing. Compound growth is powerful, but only if you start. The best time to save for retirement was ten years ago. The second best time is today. Cliché? Yes. Also true.
I am forty-one now. My retirement savings are not where the benchmarks say they should be. But I am saving 18% of my income. I am on track. And I sleep fine at night. Not because I am rich. Because I have a plan. You can too. Use the calculator. Make a plan. Start today.
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50/30/20 Calculator
Split your income into needs, wants, and savings with this classic framework.
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FAQs
How much should I have saved for retirement by age 30?
Benchmarks say one times your salary, but the more important number is your savings rate. Aim for 15% of income consistently, regardless of your current balance.
What if I am starting retirement savings late?
Increase your savings rate aggressively. At 40, aim for 20-25%. At 50, aim for 30% or more. Consider working longer, downsizing, or moving to a lower-cost area.
Is Colorado PERA enough for retirement?
Usually not on its own. PERA provides a solid base, but most retirees need supplemental savings through a 401k, 403b, or IRA to maintain their lifestyle.
What is a good retirement savings rate?
15% of income is the standard target. If you start late, you need 20% to 30%. If you start early, 10% to 12% might be sufficient due to compound growth.
Should I prioritize retirement savings over debt payoff?
Always contribute enough to get your full employer match. Beyond that, high-interest debt above 7% should usually be paid off before increasing retirement savings.
Table: Retirement Savings Benchmarks vs Reality
| Age | Fidelity Benchmark | Reality for $50K Income | Recommended Savings Rate |
|-----|-------------------|------------------------|-------------------------|
| 30 | 1x salary ($50K) | $8,000-$15,000 typical | 15% |
| 40 | 3x salary ($150K) | $30,000-$60,000 typical | 20-25% |
| 50 | 6x salary ($300K) | $80,000-$150,000 typical | 25-30% |
| 60 | 8x salary ($400K) | $150,000-$300,000 typical | 30%+ or delay retirement |
