Generally, you should have six to nine times your salary tucked away in a 401(k) or other accounts by your mid-50’s to early 60’s to have a good shot at maintaining your standard of living in retirement. So you’re definitely short of where you ought to be.
On the bright side, at least you know you have some catching up to do. Not everyone who’s behind does. For example, a study by researchers from Ohio State and the University of Alabama found that 27% of 55- to-60-year-olds hadn’t accumulated enough to maintain their standard of living in retirement, yet seemed to think they were doing just fine. The researchers labeled them “unrealistic optimists.”
But even though you’re behind, there’s no need to panic. You’ve got plenty of time to improve your retirement outlook, provided you’re willing to embark on a bold catch-up plan starting right now. Here are the three things you need to do.