How Much Should You Have Saved for Retirement by Each Age?
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The benchmarks
Fidelity’s widely cited multiples of your current salary:
| Age | Target | On a $80,000 salary |
|---|---|---|
| 30 | 1× salary | $80,000 |
| 35 | 2× salary | $160,000 |
| 40 | 3× salary | $240,000 |
| 45 | 4× salary | $320,000 |
| 50 | 6× salary | $480,000 |
| 55 | 7× salary | $560,000 |
| 60 | 8× salary | $640,000 |
| 67 | 10× salary | $800,000 |
These assume saving 15% of income from age 25, retiring at 67, and maintaining your pre-retirement lifestyle. They are a yardstick, not a verdict.
How much you actually need
The benchmarks are keyed to salary, but what you need is keyed to spending. The 25× rule says you need 25 times your annual retirement spending invested — the inverse of the 4% withdrawal rule.
Critically, subtract Social Security first. The average benefit is about $1,900 a month in 2025, roughly $23,000 a year, which reduces the portfolio you need by around $570,000.
| Annual spending | Total 25× target | Less Social Security | Portfolio needed |
|---|---|---|---|
| $50,000 | $1,250,000 | −$570,000 | $680,000 |
| $70,000 | $1,750,000 | −$570,000 | $1,180,000 |
| $90,000 | $2,250,000 | −$570,000 | $1,680,000 |
Why the first decade matters most
Three people saving $500 a month at a 7% return, all stopping at 65:
| Starts at | Contributed | Ends with | Growth |
|---|---|---|---|
| 25 | $240,000 | $1,310,000 | $1,070,000 |
| 35 | $180,000 | $610,000 | $430,000 |
| 45 | $120,000 | $260,000 | $140,000 |
The 25-year-old contributes $60,000 more than the 35-year-old and ends with $700,000 more. See it year by year in the compound interest calculator.
2025 contribution limits and priority order
| Account | Limit | Catch-up at 50+ |
|---|---|---|
| 401(k) / 403(b) / 457 | $23,500 | +$7,500 |
| Traditional or Roth IRA | $7,000 | +$1,000 |
| HSA — individual | $4,300 | +$1,000 at 55+ |
| HSA — family | $8,550 | +$1,000 at 55+ |
A sensible order: 401(k) up to the full employer match → clear high-interest debt → max the HSA → max an IRA → back to the 401(k).
If you are behind at 45 or 50
- Use catch-up contributions. From 50 you can add $7,500 to a 401(k) and $1,000 to an IRA each year.
- Work two years longer. This is the most powerful single lever available: it adds two years of contributions and growth while removing two years of drawdown.
- Delay Social Security to 70. The benefit increases about 8% for each year past full retirement age — an inflation-adjusted, guaranteed increase available nowhere else.
- Raise your savings rate with every raise. Direct the whole of each increase to retirement and you never feel a cut.
- Reconsider the target. Many people spend meaningfully less in retirement than they expect — no commuting, no payroll tax, no mortgage, no retirement contributions.
Frequently asked questions
How much should I have saved by 40?
About three times your salary as a benchmark — $240,000 on an $80,000 income. Most people are behind this; the useful response is to raise the savings rate now rather than to treat it as settled.
Is $1 million enough to retire?
Under the 4% rule it supports about $40,000 a year, plus roughly $23,000 of average Social Security — around $63,000 total. Whether that is enough depends entirely on your spending and where you live.
What percentage of income should I save?
15% including any employer match is the standard recommendation if you start in your twenties. Starting at 35 pushes it toward 20%; starting at 45, toward 30% or a later retirement date.
Should I pay off my mortgage or save more for retirement?
Capture the full employer match first — it is an immediate guaranteed return. Beyond that, at typical mortgage rates the arguments are close, and holding a low-rate mortgage while investing usually comes out ahead on expectation.
What return should I assume?
6%–7% for a diversified stock-heavy portfolio, which is roughly the long-run historical average after inflation. Use less as you shift toward bonds approaching retirement.
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Related guides
This guide is general information from ToolNest, not financial, legal or tax advice. Figures are estimates based on the assumptions stated and current at the time of writing. For decisions that matter, speak to a qualified professional in your own country.