{Click here to access the questionnaire mentioned in the video}

So recently, we were approached by a retiree with a retirement dilemma we hear all too often.

He had been reading up on savings rules and came across Fidelity’s “How much do I need to retire” recommendations.

Based on the Fidelity assumptions, the article had told him he hadn’t saved anywhere near enough for retirement, which left him discouraged over whether he could ever retire. And unfortunately, this is a situation we see all the time….and for most, their situation is better than Fidelity’s savings rules suggest.

That’s why in this video, we take a look at why Fidelity’s retirement savings guidelines can be misleading, and how you should actually be calculating when you should retire.  Over our years in financial planning, we’ve found that successful retirees often have far less saved than Fidelity recommends, yet are still able to enjoy comfortable retirements.

Let’s get right into it…

First, let’s establish the primary problem and some core beliefs behind it that need to be broken.

The primary problem is that Fidelity’s Retirement Guidelines don’t represent the truth of retirement anymore, as they rely on outdated assumptions about investment returns, retirement lifestyles, and modern wealth-building tools, and fail to acknowledge that people can retire comfortably with far less than their recommended 10x salary milestone while still maintaining their desired standard of living.

Why Fidelity’s Retirement Guidelines Might Miss the Mark in Today’s World

Fidelity’s article on retirement planning recommends saving 10x your annual income by age 67 as a baseline for retirement readiness.

While this rule of thumb may simplify the conversation around retirement savings, it overlooks key factors that make modern retirement planning more complex and personal.

Here’s why these oversights matter and what you should focus on instead:

1. The Problem with Fixed Savings Benchmarks

Fidelity’s approach assumes that a simple multiple of income will provide a reliable nest egg. But, this doesn’t account for dynamic variables, such as:

• Rising Healthcare Costs: Medical expenses and long-term care can vary drastically and often outpace inflation.
• Lifestyle Evolution: Retirement goals—travel, hobbies, or supporting family—are not one-size-fits-all and may demand flexible planning.
• Economic Uncertainty: Market volatility and inflation may erode the value of a fixed savings target.

Relying on a static benchmark fails to address the need for adaptability in retirement strategies in today’s world.

2. Fidelity’s dangerously flawed assumption of Income Needs in Retirement.

What truly determines your retirement readiness is not what your total savings amount is,  but knowing your Portfolio Income Needs—which is how much you’ll need annually to maintain your desired lifestyle. Calculating this requires a nuanced approach:

• Budgeting for Known Expenses: Fixed costs like housing, insurance, and groceries.
• Preparing for Variable Costs: Discretionary spending on travel, entertainment, or emergencies.
• Adjusting for Taxes: Tax-efficient withdrawals from traditional accounts, Roth IRAs, and HSAs are critical to stretching retirement dollars.

Knowing these needs creates a tailored plan that can adjust to your goals and the economy’s fluctuations.

3. Traditional Guidelines don’t necessarily reflect consistency and proper portfolio alignment with YOUR specific goals.

Fidelity’s guidelines suggest saving 4–5x your annual income by age 50 and 6–7x by age 60. While Fidelity encourages earlier savings milestones, what matters more is consistency and how your portfolio aligns with your specific goals. Tools like Monte Carlo simulations and stress testing can better prepare you for the realities of retirement than a generic age-based goal.

So, why does Standard Planning Miss the Mark?

Fidelity’s framework simplifies retirement, but risks misleading people by failing to address:

• The importance of personalized, adaptive planning.
• The impact of taxes, healthcare, and economic shifts on retirement security, especially in today’s landscape.
• The unique opportunities that can be created by hitting milestone savings amounts.

Retirement is less about reaching arbitrary savings benchmarks and more about understanding how to turn your assets into sustainable income in retirement.

Partnering with an advisor who understands the nuances of your Portfolio Income Needs can provide the adaptability and clarity you need for a fulfilling retirement.

Retirement in today’s world faces unprecedented challenges, and operates according to a new set of rules.

Central bank interest rate manipulation, high-frequency trading, high debt, market volatility, and geo-political threats all make retirement planning more complex than ever.

You need a fluid strategy to navigate today’s retirement landscape.

That’s why we developed The 365 Retirement Plan quiz.

Here’s how it works: you input some basic information about your savings when you’d like to retire, as well as a few other details. Our team will individually review your situation and send a personalized video that walks through your retirement situation, giving feedback on how you can achieve your retirement goals and, more importantly, next steps for you to continue on your retirement journey.

All you have to do is click here and fill out the questionnaire.