If you’re in your 40s, 50s, or 60s, chances are you’ve asked yourself: “Am I on track for retirement?” 

 It’s one of the most common financial questions — and if you’ve Googled it, you’ve probably seen benchmarks like: 

• By age 40: 3× your annual income saved 

• By age 50: 6× your annual income saved 

• By age 60: 8–11× your annual income saved 

Those numbers pop up everywhere — on Fidelity charts, Investopedia articles, and personal finance blogs. But what do they really mean? And more importantly, do they apply to your situation? 

Let’s break down how to measure retirement readiness, the limits of rules of thumb, and how to create a plan that’s unique to you. 

Common Retirement Benchmarks 

Retirement benchmarks are meant to give you a directional sense of progress. For example: 

• Age 40 → ~3× your income saved 

• Age 50 → ~6× your income saved 

• Age 60 → ~8–11× your income saved 

These milestones can be motivating, but they’re also oversimplified. 

Here’s another way to think about it: 

• Take your net worth and divide it by your annual living expenses. 

• The result is how many years you could live off your assets. 

• Example: $2 million net worth ÷ $150,000 annual expenses = ~13 years. 

A conservative target many planners use? At least 30 years of coverage. 

The Problem With Rules of Thumb 

Beyond benchmarks, you’ve probably heard of the 4% Rule — a popular withdrawal strategy. 

• Developed by financial planner William Bengen, it suggests you can withdraw 4% of your portfolio each year (plus inflation adjustments) and your money will likely last 30 years. 

• Example: A $1,000,000 portfolio = $40,000 per year of withdrawals. 

The problem? 

• It doesn’t account for taxes, healthcare, interest rate environments, or changing expenses. 

• It’s static — you could end up underspending and leaving millions behind. 

Today, more dynamic models like the Guyton-Klinger Guardrails approach allow you to increase withdrawals if markets are strong or cut back if markets fall. This creates flexibility while protecting your long-term plan. 

 Why Your Retirement Number Is Unique 

No benchmark or formula can capture the reality of your life. Your “retirement number” depends on factors like: 

• Lifestyle goals (modest vs. luxury living, travel, hobbies) 

• Debt (mortgage-free vs. carrying payments) 

• Healthcare needs (Medicare premiums, long-term care) 

• Longevity (family history, health conditions) 

• Income sources (pensions, Social Security, rental income, business sales) 

Two people with the same salary at 55 could need completely different amounts to retire comfortably. 

How to Personalize Your Retirement Readiness 

Here’s a simple framework to find your number: 

1. Estimate annual retirement expenses (include extras like a new car every 5 years). 
2. Factor in inflation (using ~3% means your costs double every 24 years). 
3. Subtract guaranteed income sources (Social Security, pensions, annuities). 
4. Determine the gap that investments must cover. 
5. Test withdrawal strategies (static vs. dynamic) with a financial planner. 
6. Stress test: What if markets underperform? What if you live 10+ years longer than expected? 

The Bottom Line 

Benchmarks and rules of thumb can be helpful — but they’re just starting points. The real key to retirement readiness is building a plan that’s tailored to your life, your goals, and your resources. 

And if you want personalized guidance, schedule a Retirement Readiness Call with me at fitwealthadvisors.com/contact. 

The Fit Wealth Show is brought to you by Plan Group Financial, Inc. (PGF) d/b/a Fit Wealth Advisors. PGF d/b/a Fit Wealth Advisors is an investment adviser registered under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. This presentation has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Past performance is not indicative of future results.