Planning for retirement can feel overwhelming—but one of the most common questions we hear is simple:
“Am I saving enough?”
While there’s no one-size-fits-all answer, having general benchmarks by age can help you evaluate your progress and make adjustments where needed.
Let’s break it down.
Why Retirement Benchmarks Matter
Retirement savings benchmarks serve as a guide—not a rigid rule. They’re designed to give you a snapshot of how your current savings compare to where you could be based on your age, income, and long-term goals. According to U.S. Securities and Exchange Commission, setting clear savings goals and consistently contributing to retirement accounts are key components of long-term financial success.
Keep in mind, your ideal savings target depends on factors like:
- Your desired retirement lifestyle
- Expected retirement age
- Income growth over time
- Investment performance
- Other income sources (Social Security, pensions, etc.)
General Retirement Savings Benchmarks by Age
Financial professionals often suggest saving a multiple of your annual salary by certain milestones. For example, Fidelity Investments provides widely recognized guidelines used as a starting point for retirement planning.
In Your 20s
- Aim to save at least 1x your annual salary by age 30
- Focus on building strong saving habits early
- Take advantage of employer-sponsored retirement plans like 401(k)s
In Your 30s
- Target 2–3x your annual salary by age 40
- Increase contributions as your income grows
- Prioritize tax-advantaged accounts like Traditional or Roth IRAs
In Your 40s
- Aim for 3–5x your annual salary by age 50
- Evaluate your investment strategy and risk tolerance
- Consider catch-up contributions if you’re behind
In Your 50s
- Work toward 6–7x your annual salary by age 60
- Maximize retirement contributions (including catch-up contributions)
- Begin thinking more seriously about retirement income planning
In Your 60s
- Aim for 8–10x your annual salary by retirement
- Fine-tune your withdrawal strategy
- Assess healthcare costs and long-term care considerations
These benchmarks are supported by industry research and retirement savings behavior studies from firms like Vanguard, which highlight the importance of consistent contributions and long-term investing discipline.
What If You’re Behind?
If these benchmarks feel out of reach, you’re not alone—and it’s not too late to make meaningful progress. Research from the Employee Benefit Research Institute shows that many Americans feel behind on retirement savings, but proactive planning can improve outcomes.
Here are a few ways to catch up:
- Increase your savings rate: Even small increases can make a big difference over time
- Delay retirement: Working a few extra years can significantly boost your savings
- Reduce expenses: Lowering your cost of living can free up funds to invest
- Revisit your investment strategy: Aligning your portfolio with your goals and timeline
Don’t Forget About the Big Picture
Benchmarks are helpful, but they don’t tell the whole story. A personalized retirement plan should also account for:
- Inflation
- Taxes
- Healthcare costs
- Market volatility
Educational resources from the U.S. Securities and Exchange Commission emphasize that a comprehensive financial plan goes beyond simple savings targets and should be reviewed regularly.
Retirement planning isn’t about perfection. It’s about progress. Whether you’re just getting started or nearing retirement, regularly reviewing your savings and adjusting your plan can help keep you on track.
If you’re unsure where you stand or want a clearer path forward, taking the time to evaluate your current savings is a great first step toward building the retirement you envision.
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This content is provided for educational purposes only. Commentary should not be regarded as a complete analysis of the subjects discussed and should not be relied upon for entering into any transaction, advisory relationship, or making any investment decision. The information presented does not involve the rendering of personalized investment advice and should not be viewed as an offer to buy or sell any securities.
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