Here's How Much You Should Have Saved in Your 401(k) by 55

One of the hardest things to do in the course of saving for retirement is figure out how much money you need. After all, when you're 35 or 43, it can be hard to get a handle on what life might cost when you're 67.

But it's good to have a general sense of how much you should have saved at different ages. And age 55 is a good time to do a check in.

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At 55, you're a decade away from being eligible for Medicare. That means you may be gearing up for your final 10 years in the workforce.

Investment giant Fidelity says that by age 50, you should aim to have 6x your salary saved for retirement, and by age 60, you should be sitting on 8x your salary. Using that logic, it seems like having 7x your salary saved for retirement by 55 is optimal. But if you aren't there yet, there's no need to panic.

Don't discount that last decade

If you're 55 earning $100,000 a year, Fidelity's logic means you should ideally have a $700,000 401(k) plan balance. If you don't, though, that doesn't automatically mean you're in trouble.

One thing to keep in mind is that if you still have another decade in the workforce, whatever amount of money you've saved to date can grow. And if you continue making contributions to a retirement account, you may end up with a nice nest egg by the time your career actually ends.

Let's say you've got $400,000 saved at 55, which is a nice amount of money but well below Fidelity's benchmark for a $100,000 salary. If you contribute $800 a month to your 401(k) for 10 more years, and your investments grow 8% a year, which is below the stock market's average, you could be sitting on $1 million by age 65.

Meanwhile, Fidelity's advice is to have 10x your salary by age 67. So even though you may not have close to 7x your paycheck at 55, with the right investing strategy and steady contributions, you could easily close that gap.

How to play catch up

If you feel you're behind on retirement savings at 55, there are steps you can take to catch up. First, make sure you're not forgetting about actual catch-up contributions, which allow you to put more money into an IRA or 401(k). You can also make catch-ups in an HSA.

Next, do a serious review of your spending. Chances are, you'll find some ways to cut back.

If that doesn't work, look at getting a side gig. If you're in your mid-50s, you may have more time on your hands due to your kids being grown and out of the house. You can take advantage of those free hours by working a bit more, boosting your income, and putting that money away for retirement.

Fidelity's guidance is just that -- advice, not gospel. So don't be too stressed if your retirement plan balance is lower than what Fidelity suggests. At the same time, it's important to assess your savings at 55 and do what you can to catch up if you feel your nest egg needs work.

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