Oct. 26: BEST OF THE BLOGOSPHERE

October 26, 2026

Rule of thumb for savings can get your program on track

Most of us are pretty private about our money. We’re unlikely to blab about how much we have stuffed away for retirement at the golf course with the lads, for instance.

So, an interesting article by Reuben Gregg Brewer for The Motley Fool fills in some of the details for us. Although the article is intended for a U.S. audience, it still gives an interesting overall look at what people have accumulated as they reach retirement age.

“When it comes to money, there will always be someone who has more than you,” Brewer begins. But, he notes, it is always interesting to ask “how do I compare?”

“The average U.S. saver aged 65 to 74 (70 being the rough midpoint) has around $600,000. That’s the peak savings age group, according to the U.S. Federal Reserve,” he explains. All figures are in U.S. dollars.

However, he continues, this relatively high number, “the average, or the mean, isn’t exactly the best figure to consider here.” That’s because, he explains, very high savings balances can distort the “average” figure.

“Think of it this way: if you put Elon Musk in a room with 10 people who have saved no money at all, the average would still be in the billions. This is why the median is often a more telling figure, with half of the sample above the median and half below,” Brewer explains.

When you look at the median savings figure for the same group, it dips to just $200,000, he writes.

“That’s actually a troubling figure, since retiring on $200,000 isn’t likely to be easy. However, what the massive divide between the mean and the median highlights is that saving is a very individual experience,” he continues.

There’s a great rule of thumb to keep your savings on track, Brewer reports.

“You save money by not spending all of your income. So, income is a key factor to consider in your savings plans. Which is why a quick rule of thumb is to have saved around 10 times your salary by age 67. Leading up to that figure, you get one-times by 30, two-times by 35, three-times by 40, four-times by 45, six-times by 50, seven-times by 55, and eight-times by 60,” he explains.

“The goal using this rule of thumb isn’t an arbitrary number; it is a personal one. And that can make a huge difference in staying motivated as you plan for your retirement. If you are looking at the $600k average and thinking it’s out of reach, step back and reconsider what that number really represents. The $200k mean figure is more telling, but it may still not be the right one to target because it isn’t specific to your situation. You’re likely to be better off targeting 10 times your salary by age 67, whatever number that happens to be,” adds Brewer.

“In other words, don’t focus too much on what everyone else is doing. You need to save enough for your situation, not the average situation,” he concludes.

One of the tricks of saving is compounding. The future value of a dollar invested today can be significantly larger. The Saskatchewan Pension Plan has a Wealth Calculator that illustrates the power of compounding.

With SPP, there is no set contribution rate. You can contribute any amount up to your annual registered retirement savings plan (RRSP) limit. You can also transfer any amount from other unlocked RRSPs you may have into SPP to consolidate your nest egg.

Once your precious savings dollars are entrusted to SPP, our investment team grows each dollar in our professionally managed, low cost, diversified pooled funds. At retirement, your choices include receiving a lifetime monthly annuity payment or having flexible income options through our Variable Benefit.

Check out SPP today!

Editor’s note: Save with SPP was saddened to learn of the recent passing of Nova Scotian Bill VanGorder, a long-time seniors advocate who held several roles with the Canadian Association of Retired Persons as well as other organizations. We spoke to him a few years ago about the need to improve benefits for seniors, here’s a link (Now is the time to act on boosting retirement security: C.A.R.P.’s VanGorder | Save with SPP) to that interview. We send our condolences to his family, friends, and the seniors’ advocacy community.

Join the Wealthcare Revolution – follow SPP on Facebook!

The Motley Fool

---

---