Here’s How the Amount Americans Need to Retire Compares to Other Countries
November 14, 2018
Many Americans find saving enough for a comfortable retirement to be a daunting task, but those who feel they can’t save enough should be glad they don’t live in Hong Kong.
A recent study from Fidelity compared the retirement savings milestones for workers in the U.S., U.K., Germany, Hong Kong, Japan, and Canada. They looked at factors like retirement age, withdrawal rates, annual savings rates, and income replacement, and then compared the milestone guidelines for countries.
They found that an American retiree should have about 10 times their salary saved by the time of retirement. This was much higher than in Japan or the U.K., where a worker would only need about 7 times their salary saved. Canadians have it a bit harder, with 11 times their salary being the guideline. Workers in Hong Kong have it the toughest, with 12 times their salary being needed.