How Much Should You Save for Retirement by Age?

In this guide, we'll give you specific, data‑backed benchmarks by age. You'll know exactly where you stand and, more importantly, what to do about it.

The Two Most Useful Retirement Rules of Thumb

Before we get into age‑based numbers, you need to understand two foundational rules:

1. The 25x Rule

This rule says you need 25 times your annual expenses saved for retirement. It comes from the 4% Withdrawal Rule — the idea that you can safely withdraw 4% of your portfolio each year in retirement and not run out of money.

If your annual retirement expenses are $50,000, you need $1,250,000 saved ($50,000 × 25).

2. The Income Replacement Rule

Financial advisors often say you'll need 70–80% of your pre‑retirement income to maintain your lifestyle. So if you earn $100,000, you'll need $70,000–$80,000 per year in retirement.

Using the 25x rule, that means you need $1.75M to $2.0M saved.

Retirement Savings Benchmarks by Age

The table below shows Fidelity's retirement savings guidelines (updated for 2026). These are based on a multiple of your current salary:

These are guidelines, not guarantees. They assume you'll retire at 67 and need about 45% of your pre‑retirement income (plus Social Security and Medicare). If you want to retire earlier, you'll need more.

Real‑World Examples by Decade

In Your 20s: The Magic of Compound Interest

You have the most valuable asset of all: time. Every dollar you save in your 20s has the potential to grow 10–15× by retirement (at 7% returns over 40 years).

Goal: Save 10–15% of your gross income. If you're making $50,000, that's $5,000–$7,500 per year. It doesn't have to be perfect — but start something. Even $100/month matters.

Where to save: If you have a 401(k) with a match, contribute enough to get the match. Then fund a Roth IRA. Then go back to the 401(k).

In Your 30s: The Critical Decade

By age 30, you should have 1× your salary saved. By 35, 2×. Many people are behind at this stage — and that's okay. The key is to increase your contribution rate.

Goal: Save 15–20% of gross income. If you're making $80,000, that's $12,000–$16,000 per year. Max out your Roth IRA ($7,000) and contribute the rest to your 401(k).

Why this matters: The 30s are when you have the highest concentration of competing priorities (kids, mortgage, student loans). But the growth you get from contributions in your 30s is massive. Every $1 you save at 35 could be $5 at 65.

In Your 40s: The Catch‑Up Decade

By 40, you should have 3× your salary saved. By 45, 4×. If you're behind, you can still catch up — but you'll need to save aggressively.

Goal: Save 20–25% of gross income. Use the catch‑up contribution options available for 401(k)s and IRAs (an extra $7,500 for 401(k) and $1,000 for IRAs if you're 50+).

In Your 50s: The Home Stretch

By 50, you should have 6× your salary saved. By 55, 7×. By 60, 8×. This is the decade where you need to be most intentional.

Goal: Save 25–30% of gross income. Max out all retirement accounts. Use catch‑up contributions. Consider reducing expenses to free up cash for savings.

Critical check: If you're behind at 50, you may need to work longer, increase savings, or reduce your projected retirement spending. The math doesn't lie.

What If You're Behind? 3 Strategies to Catch Up

• Increase your savings rate. The single most powerful lever. If you're at 10%, go to 15%. If you're at 15%, go to 20%. Every percentage point of savings makes a measurable difference.
• Delay retirement. Working 2–3 extra years can add 15–25% to your retirement portfolio (due to additional contributions and fewer years of withdrawals).
• Reduce retirement spending estimates. If you can live on 60% of your current income instead of 80%, you need 25% less saved.

Average Net Worth by Age (2026 Federal Reserve Data)

Here's the average and median net worth by age from the Federal Reserve's Survey of Consumer Finances:

Final Verdict: Where Do You Stand?

The benchmarks above are guidelines, not absolutes. Your retirement number depends on your lifestyle, healthcare needs, where you live, and how long you live. But these numbers give you a clear target to aim for.

If you're ahead of the benchmarks: Great work. Keep saving and consider early retirement or a more generous retirement lifestyle.

If you're behind: Don't panic. You can catch up. Increase your savings rate now. Every dollar you save today has more time to grow than a dollar saved later.

Ready to run your own numbers? Use our Retirement Withdrawal Calculator to see exactly how long your savings will last.

Frequently Asked Questions