How Much Should You Have Saved for Retirement by Age?
Quick Answer
A widely cited guideline from Fidelity Investments suggests saving 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. On a $75,000 salary, that means $75K saved by 30, $225K by 40, and $750K by 67. But these are averages — your actual target depends on your lifestyle, location, and retirement goals.
Retirement Savings Benchmarks by Age
By Age 25: 0.5x–1x Your Salary
Target on $50K salary: $25,000–$50,000
This is aggressive, and most 25-year-olds won't hit it. That's OK. The real goal at 25 is to be contributing consistently — even 10% of your salary is building a powerful foundation thanks to compound growth.
If you started at 22 with a $50K salary, contributing 15% ($7,500/year) with a 4% employer match and 7% returns, you'd have roughly $35,000 by 25.
By Age 30: 1x Your Salary
Target on $65K salary: $65,000
According to the Federal Reserve's Survey of Consumer Finances, the median retirement savings for households under 35 is approximately $18,000. If you're anywhere near 1x salary, you're well ahead of most peers.
How to get there: Contributing 15% of a $65K salary ($9,750/year) from age 22 with 7% returns and a 4% match puts you at about $95,000 by 30. You don't need to earn a lot — you need to start early.
By Age 35: 2x Your Salary
Target on $80K salary: $160,000
This is where the compounding starts to feel real. Your early contributions are now generating meaningful returns on their own. A $100K balance at 7% generates $7,000 in returns per year — nearly as much as your annual contributions.
By Age 40: 3x Your Salary
Target on $90K salary: $270,000
The 40s are a critical decade. If you're on track, stay the course. If you're behind, you still have 25+ years of compounding ahead. This is the decade to maximize contributions and avoid lifestyle inflation eating your raises.
By Age 45: 4x Your Salary
Target on $95K salary: $380,000
At this point, your investment returns are likely generating more growth than your contributions. A $350K portfolio at 7% returns grows by $24,500/year before you add a single dollar.
By Age 50: 6x Your Salary
Target on $100K salary: $600,000
At 50, you unlock catch-up contributions: an extra $7,500/year in your 401(k) and $1,000 in your IRA. Use them. These catch-up provisions exist specifically because the government recognizes many people need to accelerate savings in their 50s.
By Age 55: 7x Your Salary
Target on $105K salary: $735,000
You're in the home stretch. At this point, you should be modeling specific retirement scenarios — not just hitting benchmarks. When exactly do you want to retire? What will your expenses be? Do you have pension income or Social Security to supplement?
By Age 60: 8x Your Salary
Target on $110K salary: $880,000
Begin planning your withdrawal strategy. Will you use the 4% rule? Bucket strategy? Consider working with a fee-only financial advisor for a comprehensive retirement income plan.
By Age 67: 10x Your Salary
Target on $110K salary: $1,100,000
With $1.1 million and the 4% rule, you can withdraw approximately $44,000/year. Add Social Security (average benefit ~$23,000/year for a typical earner) and you're at $67,000 — roughly 60% of your working income, which is comfortable for most retirees whose house is paid off and kids are independent.
What If You're Behind?
Don't panic. Here's how to catch up at every age:
In your 30s: Increase contributions by 1–2% each year. Every raise should go 50% to lifestyle, 50% to retirement. You have 30+ years of compounding ahead.
In your 40s: Maximize your 401(k) ($23,500/year in 2026). If possible, max a Roth IRA too ($7,000). Consider whether your spending matches your values — most people in their 40s can find $500/month to redirect.
In your 50s: Use catch-up contributions ($31,000 total 401(k) limit). This is your highest-earning decade — channel the difference between your 30s lifestyle costs and your 50s salary directly into retirement accounts.
In your 60s: Consider working 2–3 extra years. Each additional year of work means one more year of saving, one more year of returns, one fewer year of withdrawals, and a higher Social Security benefit. Working from 65–67 can improve your retirement by 20–30%.
The Benchmarks Are Just Guidelines
These multiples assume:
- You want to maintain roughly 80% of your pre-retirement income
- You'll retire between 65–67
- You'll receive Social Security
- You'll live 25–30 years in retirement
- Your portfolio earns 4–7% real returns
Your number might be lower if: You have a pension, plan to work part-time in retirement, will live in a low-cost area, or have no mortgage in retirement.
Your number might be higher if: You want to retire early, live in a high-cost area, have significant healthcare needs, or want to travel extensively.
FAQ
Does my employer match count toward the benchmark?
Yes. If you contribute 6% and your employer matches 4%, your total savings rate is 10%. Both your contributions and the match count toward your accumulated savings benchmark.
Should I count my home equity as retirement savings?
Generally no. You need somewhere to live in retirement. Home equity is a safety net (reverse mortgage, downsizing), not a primary income source. Calculate your benchmarks based on investment accounts only.
What if I didn't start saving until 35?
You'll need to save a higher percentage — roughly 20–25% of income instead of 15%. It's harder but absolutely doable. A 35-year-old saving $15,000/year with 7% returns will have roughly $1.1 million by 65.
Is Social Security enough without savings?
No. The average Social Security retirement benefit is approximately $1,900/month. That's $22,800/year — below the poverty line for most lifestyles. Social Security was designed as a supplement, not a replacement for savings.
Try the Calculator
Use our Retirement Savings Calculator to model your personal retirement timeline — input your age, income, savings rate, and expected returns to see if you're on track and what adjustments would help.
Sources
- Fidelity Investments — Retirement Savings Guidelines (fidelity.com)
- Federal Reserve — Survey of Consumer Finances (federalreserve.gov)
- Social Security Administration — Retirement Benefits (ssa.gov)
- Vanguard — How America Saves Report (vanguard.com)