How do I know if I am saving enough for retirement?

A common benchmark is saving 15% of your gross income annually, including any employer match. You can also use the rule of thumb that you should have roughly 1x your salary saved by 30, 3x by 40, 6x by 50, and 8x by 60. At retirement, most planners suggest having 10-12x your final salary saved. A more precise way is to calculate your expected retirement expenses, then determine how much you need saved to generate that income. The 4% rule suggests you can withdraw 4% of your portfolio annually without running out of money, so multiply your desired annual retirement income by 25 to get your savings target. Online retirement calculators or a financial advisor can help you model your specific situation more accurately.