How Much Should You Save for Retirement? MLB’s Pension Scandal Is a Warning.
Jerry Hinsley probably didn’t expect to be here at 80 years old—scraping by on a pension of just $2,100 a year. As a former Major League Baseball pitcher with the New York Mets, he thought he'd earned more. And technically, he had. But thanks to an obscure 1980 agreement between MLB and the Players Association, Hinsley and over 500 other retired players were quietly left behind (USA Today, 2025).
Today, while modern MLB stars sign contracts worth hundreds of millions, players like Hinsley get nothing more than a small stipend that ends when they die. Their service, their careers, and their contributions? Forgotten.
Why does this matter to you?
Because retirement isn’t promised—even for the people we think it should be. If a pro athlete can spend his final years struggling, it’s fair to ask: Are you saving enough for your own future?
While most people rely on pensions, 401(k) plans, or Social Security for retirement, what about celebrities? Do rockstars, actors, and athletes have pensions? The truth is, most don’t. Instead, their financial futures often depend on savvy investments, royalties, and careful money management. Curious how your favorite stars secure their future? Explore our latest celebrity net worth articles to see how musicians, Hollywood legends, and athletes build—and sometimes lose—their fortunes.
So… How Much Do You Really Need to Save for Retirement?
That’s the million-dollar question—literally.
Ask three financial experts and you’ll probably get three different answers. According to Merrill (Bank of America), it depends on everything from your age to your lifestyle dreams to how long you expect to live.
But don’t panic. There are simple benchmarks that can help you get started.
1. Use Your Salary as a Starting Point
Here’s a simple, realistic guide based on Merrill’s Financial Wellness Tracker for middle-income earners ($40,000 to $100,000 per year). Think of these as milestones, not strict rules:
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By age 30: Save at least half your salary.
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By age 40: Aim for twice your salary.
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By age 50: Target around four times your salary.
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By age 60: Push for seven times your salary.
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By age 65: Have 8 to 10 times your salary saved.
This assumes you’ll need your savings to replace about 38% of your pre-tax income once you retire, with the rest coming from Social Security and other income sources.
2. But It's Not Just About Numbers—It’s About Your Life
Will you travel in retirement? Downsize your home? Work part-time? Retire at 65—or 55?
Your answers shape how much you really need.
And here’s a twist: Studies show retirees often spend less over time. Sure, healthcare costs tend to rise—but spending on travel and luxury goods often declines after age 80. So, your spending habits in your 60s might look very different by your 80s.
3. Understand Where Your Income Will Come From
Most people think “retirement savings” just means their 401(k). But your full retirement income could include:
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Social Security (likely your primary source)
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Employer retirement plans (like 401(k)s)
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IRAs (traditional or Roth)
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Pensions (if you’re lucky)
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Annuities
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Rental or business income
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Proceeds from home sales or inheritances
Your savings goal needs to fill the gap between what you’ll need—and what those income streams won’t cover. Check out the Finance Monthly 25/26 401 (K) Guide: The Only Retirement Guide You'll Ever Need
4. Don't Forget About Taxes
A million dollars in a pre-tax 401(k) is not the same as a million in a Roth IRA.
Why? Taxes.
Withdrawals from a traditional 401(k) or IRA are taxed as regular income. Roth IRA withdrawals? Tax-free. Mixing account types can help you manage your tax burden in retirement—a trick many people overlook.
5. The 4% Rule: How Far Will Your Savings Really Stretch?
Here’s a quick reality check from Merrill:
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$300,000 saved = about $12,000 per year in retirement income.
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$1 million saved = about $40,000 per year.
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$1.5 million saved = roughly $60,000 per year.
This assumes a 4% annual withdrawal rate, which many experts still recommend for sustainable income throughout retirement.
Surprised? You’re not alone.
6. A Small Change Makes a Big Difference
Feeling behind? You’re not doomed.
Even bumping your contributions by just 1% can dramatically change your retirement picture over 30 years. According to Merrill’s calculations:
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Saving 6% instead of 5% on a $50,000 salary could mean over $50,000 more by retirement.
Catch-up contributions (available once you turn 50) can also help close the gap.
Why the MLB Pension Crisis Should Worry You
If you’re thinking: “But I have a pension…”—remember Jerry Hinsley.
He thought he did, too.
The MLB pension scandal proves that even professional athletes can be let down by the very systems meant to protect them. Rules change. Organizations delay action. And people fall through the cracks. With around 10,000 Americans turning 65 every day, the U.S. is heading toward a future where one in five people will be 65 or older by 2040—that’s over 80 million retirees, according to US Aging. This growing reality puts the spotlight on one of the biggest challenges facing the nation: pensions in the U.S. healthcare sector.
In our special report—‘Do U.S. Nurses Have Pensions and Why Retirement Planning Matters’—we explore what today’s nurses need to know, and why planning ahead is more important than ever.
You can’t afford to assume anyone else will safeguard your retirement.
Bottom Line: How Much Should You Save?
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Aim for 8 to 10 times your final salary saved by age 65.
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Expect to withdraw about 4% per year in retirement.
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Build a mix of account types to manage taxes.
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Start early, contribute consistently, and reassess often.
Ultimately, the “right” number depends on the life you plan to live—and the unexpected life events you can’t predict.
Because if there’s one thing Jerry Hinsley’s story teaches us, it’s this:
No one—athlete or accountant—can afford to ignore their retirement plan.
Wondering Do Hollywood Stars Have Pensions? Why Fame Can’t Buy Retirement Security? Even legendary names like Ringo Starr, Jeff Lynne, and Paris Jackson face retirement planning challenges. Click the linked text above to explore how even fame can't guarantee financial security.
How Much to Save for Retirement Frequently Asked Questions
Is $1 million enough to retire?
For some, yes. But it may only provide around $40,000 per year in retirement income. Your lifestyle and other income sources will decide whether it’s enough.
When should I start saving for retirement?
As soon as possible. Starting in your 20s or 30s lets compound interest work in your favor.
How much should the average American save for retirement?
Experts suggest saving 8–10 times your final salary by age 65, adjusting based on your lifestyle and spending plans.
What if I’m behind on retirement savings?
Don’t panic. Increase contributions, take advantage of catch-up options, and consider working longer or part-time during retirement.
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