If you’re wondering whether you’re saving enough for retirement, you’re not alone. For many Americans, the idea of a secure, comfortable retirement feels increasingly out of reach—especially in the face of rising inflation, longer life expectancy, and the disappearance of traditional pensions. But there are concrete benchmarks that can help you measure your progress and plan for the years ahead.
Financial advisors often use a simple rule of thumb: by certain ages, you should have saved a multiple of your annual income in order to retire comfortably. While these numbers aren’t one-size-fits-all, they provide a helpful baseline for those trying to evaluate where they stand—and what to do if they’re behind.
Why Age-Based Retirement Benchmarks Matter
Saving for retirement isn’t about hitting a magic number. It’s about replacing your income in your later years so you can maintain your lifestyle without relying entirely on Social Security. That means your savings goal should reflect your annual expenses, not just a flat dollar amount.
Age-based benchmarks are useful because they account for how your income (and your savings potential) evolves over time. The earlier you begin saving and investing, the more time compound interest has to grow your wealth. And if you start later, understanding where you “should” be can motivate you to catch up strategically rather than panic.
In Your 30s: Build Momentum Early
Your 30s are a critical decade for establishing consistent saving habits, even if retirement still feels far away. Financial planners typically recommend that by age 30, you should aim to have the equivalent of your annual salary saved. By age 40, that number should grow to twice your salary.
For example, if you earn $60,000 a year, your target should be around $60,000 by 30 and $120,000 by 40. These early benchmarks assume you’re contributing regularly to a retirement account such as a 401(k) or Roth IRA, and that you’re investing in a diversified portfolio with a long-term growth strategy.
But for many, this is easier said than done. Student loan debt, childcare costs, and the rising cost of living can make it difficult to prioritize retirement. If you’re not on pace yet, focus on increasing your savings rate gradually—aiming for at least 15% of your income, including any employer match. Automating your contributions is one of the easiest ways to stay consistent, and any raise or bonus should be seen as an opportunity to boost your retirement savings rather than your lifestyle.
In Your 40s: Catch Up and Stay Focused
By your 40s, you should be gaining traction in your career, and ideally, your income has increased along with your ability to save. At this stage, experts suggest having three times your annual salary saved by age 45 and six times by age 50.
So if you’re earning $80,000 a year, your goal would be to reach $240,000 by 45 and $480,000 by 50. While these numbers may seem high, remember that you’re now benefiting from both higher contributions and compound growth. If you’ve been saving consistently since your 20s, this is the time to maintain momentum.
However, this is also the decade where financial distractions can intensify. You may be paying down a mortgage, funding your children’s education, or helping aging parents. It’s crucial not to let these demands completely sideline your retirement goals. Review your retirement accounts annually, make sure you’re contributing enough to get the full employer match (if available), and keep your investment portfolio aligned with your time horizon.
If you’re behind, don’t panic. You still have time to catch up, but it will require intentional decisions. Consider reducing discretionary spending, refinancing debt, or even downsizing your home. Every extra dollar you save in your 40s will make a significant impact over the next two decades.
In Your 50s: Accelerate While You Can
Your 50s are often referred to as the “make-or-break” years for retirement. Ideally, by age 55, you should have saved at least seven times your salary, and by 60, eight times. If your annual income is $90,000, that translates to $630,000 at 55 and $720,000 at 60.
At this point, retirement is no longer a distant concept. It’s a visible destination. That means it’s time to start refining your plan. Estimate your retirement expenses, consider when to start drawing Social Security, and determine whether your savings will last 25 to 30 years or more.
Fortunately, the IRS allows you to make “catch-up” contributions starting at age 50. For 2025, workers over 50 can contribute an additional $7,500 to their 401(k) accounts on top of the standard $23,000 limit, giving you a powerful tool to boost savings fast. If you’re behind, this is the decade to prioritize retirement above almost everything else financially.
You should also begin considering healthcare costs. Medicare eligibility begins at 65, but early retirees need a plan for bridging the gap. Health Savings Accounts (HSAs), if available to you, offer a triple tax benefit and can be a powerful way to prepare for future medical expenses.
In Your 60s: Know Your Number
Once you’re in your 60s, your focus should shift from accumulating savings to planning how to draw down your assets sustainably. The typical benchmark is to have ten times your final salary saved by the time you retire. If your salary is $100,000, that means your savings target would be $1 million.
But these rules are flexible. Some retirees live comfortably with less, especially if they downsize or live in lower-cost areas. Others may need more due to healthcare needs or longer life expectancy.
Now is the time to build a retirement income plan. Work with a financial advisor to determine how much you can safely withdraw from your accounts each year, whether to delay Social Security to increase your benefit, and how to manage taxes on your distributions. If you’re still working, delay retirement even by a couple of years if you can—those additional working years can dramatically increase your savings while reducing the number of years you’ll need to live off them.
What If You’re Behind?
First, take a deep breath. Many Americans fall behind on retirement savings at some point. The key is to act early and decisively rather than ignore the problem.
Start by assessing your current savings, income, and expenses. Find ways to cut costs and redirect money toward your retirement accounts. Take full advantage of catch-up contributions and employer matches. Adjust your lifestyle expectations if necessary—and understand that even working part-time for a few years beyond traditional retirement age can make a huge difference.
Remember, retirement planning isn’t about perfection. It’s about progress. Every year you save more, pay down debt, and invest wisely brings you closer to your goals.
Final Thoughts
Knowing how much you should have saved for retirement by age provides structure and clarity in what can otherwise feel like a murky, overwhelming process. Whether you’re right on track or playing catch-up, the most important step is the one you take today.
Start with a plan, stick to your goals, and remember: it’s never too early—or too late—to invest in your future.