How Much Money to Have Saved to Retire by Age 67

Laveta Brigham

The economic fallout from the coronavirus pandemic has certainly rippled across the nation, making a dent in millions of Americans’ personal finances. Yet according to Gallup’s annual Economy and Personal Finance survey, soon-to-be retirees are only slightly more concerned about having enough money for retirement — and most still expect […]

The economic fallout from the coronavirus pandemic has certainly rippled across the nation, making a dent in millions of Americans’ personal finances. Yet according to Gallup’s annual Economy and Personal Finance survey, soon-to-be retirees are only slightly more concerned about having enough money for retirement — and most still expect to retire at age 66.

You should have saved 10 times your income to retire by age 67 according to retirement-plan provider Fidelity Investments. That’s in order to continue your current lifestyle in retirement, rather than planning to downsize or spend more in old age.

Those looking to retire earlier, say at age 66, would need to save more than the recommended 10 times their income to make up for the one-year buffer in between.

Fidelity’s guideline assumes retirees are no longer working, not even a part-time job. It takes into account your retirement contributions and investments, in addition to any cash savings.

But what’s surprising is this: Gallup’s survey suggests that a greater percentage of seniors are expecting to work a part-time job in retirement due to the coronavirus pandemic. Furthermore, as hopeful retirees brace for the uncertainty ahead, more look to their savings account as another source of income.

The importance of a high-yield savings account

Varo Savings Account

Varo Savings Account

Information about the Varo Savings Account has been collected independently by CNBC and has not been reviewed or provided by the bank prior to publication. Bank Account Services are provided by The Bancorp Bank, Member FDIC.

  • Annual Percentage Yield (APY)

    0.81% (with option to earn up to 2.80% if meet requirements)

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle*

  • Excessive transactions fee

  • Overdraft fees

    None up to $50; anything greater, Varo would decline the transaction

  • Offer checking account?

  • Offer ATM card?

    Yes, if have a Varo checking account

*The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D

Pros

  • High APY and option to earn even higher
  • No minimum balance
  • No monthly fees
  • Up to 6 free withdrawals or transfers per statement cycle*
  • No penalty for overdrafts up to $50 (anything greater, Varo declines the transaction)
  • Option to add a checking account
  • ATM access if you have a checking account
  • Offers 2 programs to help automate your savings

Cons

  • Overdrafts over $50 will cause transactions to be declined
  • Cash deposits are only available through third-party services, which may charge a fee

How part-time work can help

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the CNBC Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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