How Much You Should Have Saved for Retirement by Age
The Benchmarks
Fidelity's rule of thumb, widely used because the math holds up:
| Age | Retirement savings multiple | |---|---| | 30 | 1× annual salary | | 35 | 2× | | 40 | 3× | | 45 | 4× | | 50 | 6× | | 55 | 7× | | 60 | 8× | | 67 (retirement) | 10× |
For someone earning $80,000, that's $80k saved by 30, $240k by 40, $800k by 67. The endpoint targets a ~45% income replacement rate from savings, with Social Security covering the rest.
The Assumptions Behind It
- Save 15% of gross income (including employer match) starting at 25.
- Invest in a diversified stock-heavy portfolio through your career.
- Retire at 67 with plans to live to 92.
- Follow roughly the 4% rule in retirement.
Change the assumptions and the multiples change. FIRE seekers targeting age 45 need 25× annual expenses — see what is FIRE.
What Counts
- 401(k), 403(b), 457(b) balances.
- Traditional and Roth IRA.
- HSA if you plan to use it for retirement.
- Taxable brokerage earmarked for retirement.
Does not count: home equity, cars, checking/savings, emergency fund.
If You're Behind (Which Most Are)
The median retirement balance for a 40-something in the U.S. is about $63,000 — far below "3× salary." Being behind is normal, not fatal. The catch-up playbook:
1. Capture your full employer match. Non-negotiable. Free money.
2. Push savings rate to 20–25%. This usually requires cutting housing or transportation — that's where the real dollars live. See lifestyle creep explained.
3. Use catch-up contributions at 50+. An extra $8,000/year to your 401(k), $1,000 to your IRA. That alone can move you 1–2× salary over 10 years.
4. Delay retirement by 2–5 years. Each delayed year adds contributions, avoids withdrawals, and increases Social Security benefits by ~8%. Three extra years often has more impact than a decade of extra saving.
5. Downsize housing at 55–65. Extracts equity, cuts fixed costs, and often works better than "cut lattes" energy.
If You're Ahead
Don't get sloppy. The dangerous decade is your 40s and early 50s, when income peaks and expenses balloon. Review your allocation, rebalance annually, and check your projected retirement income against the bucket strategy to avoid sequence-of-returns risk near retirement.
Related Reads
- Net worth benchmarks by age — a broader view including home equity.
- How to build wealth in your 20s — if you're just starting.
Run Your Number
Enter your current balance and monthly contribution in the compound interest calculator. If the projected age-67 balance beats 10× salary, you're on track. If not, adjust the contribution slider until it does — that's your new savings target starting next payroll.