On Saturday, July 1, the Wall Street Journal ran the article Will You Be Able To Retire? which tries to answer the question “Is my retirement savings on the right track, or not?” The most interesting part of the article is a graph which provides savings and debt targets based on age, reproduced here:
In some cases, the debt targets appear overly optimistic. Using their figure of a $100,000/year salary, this means that one’s total debt should be around $200,000 at age 30. Considering that in April, 2006 the median price of a house in Orange County was $628,0001, I don’t see too many young, recent home buyers from that area hitting that target.
Regardless, this graph gives a useful metric to see whether you are on track for saving for retirement.
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