How Much Should You Have Saved for Retirement by Age?

The General Rule: Save Multiples of Your Salary

A commonly cited guideline from Fidelity suggests having saved specific multiples of your annual salary by certain ages. This assumes you start saving at 25, retire at 67, and maintain your lifestyle in retirement.

• Age 30: 1x your annual salary saved
• Age 35: 2x your annual salary saved
• Age 40: 3x your annual salary saved
• Age 45: 4x your annual salary saved
• Age 50: 6x your annual salary saved
• Age 55: 7x your annual salary saved
• Age 60: 8x your annual salary saved
• Age 67: 10x your annual salary saved

So if you earn $75,000 at age 40, you would ideally have about $225,000 saved for retirement.

Are These Numbers Realistic?

These benchmarks assume you save 15% of your income consistently throughout your career and invest it for growth. For many people, especially those with student loans, kids, or who started saving late, these numbers can seem out of reach.

The good news: these are guidelines, not rigid requirements. Your actual needs depend on your expected lifestyle, where you plan to live, healthcare costs, Social Security benefits, and other factors.

What If You Are Behind?

Do not panic. Many people are behind on retirement savings, and there are ways to catch up:

Increase Your Savings Rate

If you have been saving 5%, bump it to 10% or more. Every percentage point matters. Aim to save at least enough to get your full employer 401(k) match - that is free money.

Take Advantage of Catch-Up Contributions

If you are 50 or older, you can contribute extra to retirement accounts. In 2026, you can add an extra $7,500 to your 401(k) and $1,000 to your IRA above the standard limits.

Delay Retirement

Working a few extra years has a triple benefit: more time to save, more time for investments to grow, and fewer years of retirement to fund. Delaying Social Security also increases your monthly benefit.

Reduce Expected Expenses

If you can live on less in retirement (downsizing your home, moving to a lower cost area, or simply spending less), you do not need as much saved.

The Power of Starting Early

Consider two scenarios:

• Person A: Saves $500/month from age 25 to 65 (40 years)
• Person B: Saves $500/month from age 35 to 65 (30 years)

Assuming 7% annual returns:

• Person A: $1,197,811
• Person B: $566,764

Person A contributed only $60,000 more but ended up with over $600,000 more, thanks to compound interest. Use our retirement calculator to see how your savings could grow.

How Much Will You Need in Total?

A common rule of thumb is that you will need 70-80% of your pre-retirement income each year in retirement. If you earn $100,000 before retiring, plan for $70,000-$80,000 annually.

The 4% rule suggests you can withdraw 4% of your savings each year with a low risk of running out. To generate $60,000 per year (assuming $20,000 from Social Security and needing $80,000 total), you would need $1,500,000 saved ($60,000 ÷ 0.04).

Do Not Forget About Social Security

Social Security will replace some of your income in retirement. The average monthly benefit in 2026 is about $1,900, or roughly $23,000 per year. Higher earners can receive up to about $50,000 per year at full retirement age.

However, Social Security was never meant to be your only income source. It typically replaces only 30-40% of pre-retirement income for average earners.

The Bottom Line

The benchmarks above are useful guidelines, but everyone's situation is different. The most important thing is to start saving something, increase your savings rate over time, and let compound interest work in your favor.

If you are behind, do not give up. Any amount you save now is better than nothing. Use our retirement calculator to create a plan and see how changes to your savings rate affect your future.