How Much Should You Have Saved for Retirement by Age?

By age 30 you should have 1x your annual salary saved for retirement. By 40, 3x. By 50, 6x. By 60, 8x. By 67, 10x. These are the widely cited benchmarks from Fidelity Investments and they provide a useful framework for checking whether you are on track.

Here is what these benchmarks look like in actual dollars. If you earn $75,000 at age 30, you should have approximately $75,000 saved. At 40 earning $90,000, you need $270,000. At 50 earning $100,000, you need $600,000. At 60 earning $110,000, you need $880,000. At 67 earning $110,000, you need $1,100,000. These numbers assume your income grows over time and you want to maintain roughly the same lifestyle in retirement.

If you are behind these benchmarks, you are not alone. The median American has far less saved than these targets suggest. The median retirement savings for someone aged 55-64 is approximately $185,000 — against a target of $600,000 or more. The gap between what people have and what they need is the central challenge of retirement planning in America.

The math behind catching up is straightforward but demanding. If you are 35 with $30,000 saved and need $270,000 by 40 (3x your $90,000 salary), you need to save approximately $3,500 per month for 5 years at a 7% return. That is extreme. A more realistic approach: accept that you will catch up gradually and focus on maximizing your savings rate going forward.

The most powerful catch-up tools available: maximize your 401k contributions ($23,500 in 2025, or $31,000 if over 50). Open and max out a Roth IRA ($7,000 per year, $8,000 if over 50). If your employer offers a match, contribute at least enough to get the full match — that is free money that accelerates your catch-up. If you are over 50, the catch-up contribution provisions exist specifically for people in this situation.

The 4% rule drives these benchmarks. Financial planners estimate you can safely withdraw 4% of your retirement savings per year without running out of money over a 30-year retirement. If you want $80,000 per year in retirement, you need $80,000 divided by 0.04 = $2,000,000. The 10x salary benchmark approximates this calculation for someone wanting to replace about 80% of their pre-retirement income.

Common retirement savings mistakes: not starting early enough (every year you delay costs exponentially due to lost compound interest), cashing out retirement accounts when changing jobs (the taxes and penalties destroy decades of growth), investing too conservatively in your 20s and 30s (at that age you have decades to recover from market downturns so stocks should dominate your portfolio), and ignoring healthcare costs in retirement (Medicare does not cover everything — budget $300,000 per couple for lifetime healthcare costs).

Use our free retirement gap calculator to see your projected savings, your target, and exactly how much more you need to save each month to close the gap.

Frequently Asked Questions:

What if I am 40 and have nothing saved? Start immediately. Saving $1,000 per month from age 40 to 67 at 7% return gives you approximately $970,000. It is not too late but every month you delay reduces that number significantly.

Does Social Security count toward these benchmarks? These benchmarks assume Social Security covers about 40% of pre-retirement income. Your savings need to cover the other 60%. You can check your estimated benefit at ssa.gov.

Should I include my home equity in retirement savings? Most financial planners exclude home equity from retirement savings calculations unless you plan to sell and downsize. You need liquid assets you can withdraw from.

What if I cannot save 15% of my income? Save whatever you can and increase by 1% per year. Even 5% with an employer match is better than 0%. The key is starting and building the habit.

Are these benchmarks the same for everyone? No. If you plan to retire early you need more. If you have a pension you need less. If you live in a high-cost area you need more. Use a retirement calculator for your specific situation.