How Much Should You Have Saved for Retirement?

When it comes to retirement planning, one of the most common questions people ask is, “How much should I be saving?” The truth is, there’s no one-size-fits-all answer. Everyone’s financial situation, lifestyle goals, and retirement vision look different. But having a general idea of savings habits by decade can give you a helpful starting point.

Let’s take a look at how saving for retirement might typically progress over time.

Savings Benchmarks by Decade

These are not hard rules, but rather simple benchmarks people often consider when thinking about long-term savings. 

In Your 20s 

• Focus on building the habit of saving regularly, even if the amount is small. 

• Contribute enough to your employer’s retirement plan to capture any available match, if offered. 

• Prioritize creating an emergency fund alongside retirement savings. 

In Your 30s 

• Aim to steadily increase your retirement contributions as your income grows. 

• A general benchmark to strive for is having the equivalent of 1 to 1.5 times your annual salary saved by the end of your 30s. 

• Continue balancing retirement savings with other financial goals like paying off debt and saving for a home. 

In Your 40s 

• Try to ramp up contributions when possible, especially as debts like student loans may start to decrease. 

• By the time you wrap up your 40s, having 2 to 3 times your salary set aside can be a helpful milestone. 

• Start thinking more seriously about what retirement might look like, including preferred age and lifestyle expectations. 

In Your 50s 

• Review your retirement accounts and estimated income needs. 

• By your late 50s, having around 4 to 6 times your annual salary saved can be a helpful target to support your future goals. 

• If you’re behind, this is when many people increase their savings rates. Catch-up contributions may be available in certain employer plans or IRAs for those over age 50. 

In Your 60s and Beyond 

• Shift your focus toward how and when you’ll start using your retirement savings. 

• Review income sources, healthcare options, and Social Security timing. 

• At this stage, people often adjust their retirement timeline based on savings progress, market performance, and personal preferences. 

• By your mid-60s, working toward 6 to 10 times your salary could help cover expenses throughout retirement. 

Keep in Mind:

Remember: these benchmarks are general suggestions and aren’t requirements or guarantees. Saving consistently, even in small amounts, can add up over time. Life circumstances like career changes, family responsibilities, and unexpected expenses can affect how and when you save — and that’s normal.

Need Help Understanding Your Retirement Picture? 

If you’re curious how your current savings habits align with these general benchmarks, or just want to talk through your retirement goals, our team at RetireAdvisers℠ is here to help.

The concepts expressed herein represent the views and opinions of Pension Consultants, Inc., and are not intended as legal, tax, or investment advice for any specific individual, account, or plan.