To maintain your standard of living, you need to save 11 times your annual salary if you plan to retire at age 65. How many people are on pace to hit that mark?

Answer: Just 30% of individuals are on track to save that much for retirement.

Those figures come from a new retirement analysis from Aon Hewitt, a benefits consulting company. It examined the retirement prospects for 2.2 million employees at 78 large American companies.

The calculation that American need to save 11 times their salary (in addition to Social  Security) took into account inflation and post-retirement medical costs, and the fact that retirees would want to maintain their current standard of living. It assumes employees will retire at age 65 after working for 30 years.

Planning to work until 67? That cuts the amount you need to save to 9.4 times your salary.

Want to retire earlier at age 62? It’ll cost you 13.5 times your salary.

The average employee in the analysis was on track to save 8.8 times their final salary, which falls well short of the 11x target. Take defined benefit pension accumulations out of the equation, and the 8.8 number falls all the way to 6.7 times annual salary.

That’s right, according to Aon Hewitt the average American relying solely on defined contributions plans to save for retirement is on pace to accumulate just 6.7 times their annual salary by age 65.

The analysis also found that in the first year of retirement alone, individuals will spend 85% of their annual salary to maintain their standard of living.

Source: “The Real Deal: 2012 Retirement Income Adequacy at Large Companies,” Aon Hewitt.

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