How much should I save for retirement by age?

Retirement savings benchmarks by age give you a rough check on whether you are on track — but the right number depends on your income, expected retirement age, lifestyle, and other income sources. These guidelines are starting points, not verdicts.

The Fidelity benchmarks

Fidelity's widely cited rule of thumb: save 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. These targets assume retirement at 67, replacing 45% of pre-retirement income from savings, and receiving Social Security for the remainder. They assume a 15% savings rate starting at 25. The benchmarks break down if your circumstances differ — a higher-income earner needs to replace more income from savings, someone retiring early needs more, and someone with a pension may need less.

By decade: what to target

In your 20s: The target is to start. Even small contributions matter enormously because of compounding time. Aim for at least enough to capture the full employer 401(k) match. The habit and account structure matter more than the balance at this stage.

In your 30s: Target 1-2x your annual salary saved by 35, 2-3x by 40. This decade brings higher income but also higher expenses. Maintain or increase your savings rate even as expenses grow.

In your 40s: Target 3-4x salary saved by 45, 4-6x by 50. This is typically peak earning decade. Maximize tax-advantaged accounts and start modeling what retirement actually costs using realistic spending estimates.

In your 50s: Target 6-7x by 55 and 7-8x by 60. Take advantage of catch-up contributions: an extra $8,000 in your 401(k) and $1,100 in your IRA annually for those 50+. Start thinking concretely about Social Security claiming strategy.

Approaching retirement: Target 8-10x salary. Shift from accumulation to distribution planning: withdrawal sequence, required minimum distributions, Medicare timing, and whether projected income covers projected spending including healthcare.

The 4% rule as a planning anchor

Withdraw 4% of retirement savings in the first year, then adjust for inflation annually. A $1,000,000 portfolio supports about $40,000/year; $1,500,000 supports $60,000/year. This is a planning heuristic based on historical data, not a guarantee. Lower withdrawal rates (3-3.5%) provide more cushion for longer retirements.

Frequently asked questions

What if I am behind on retirement savings?
The most effective adjustments: increase your savings rate aggressively, work longer (each additional year is a year less of withdrawal and a year more of contributions), delay Social Security (each year of delay from 62 to 70 increases your monthly benefit by 6-8%), and revisit your retirement spending expectations.

Does Social Security count toward my retirement savings target?
The benchmarks above assume Social Security supplements savings rather than being counted in the balance. Check your benefit estimate at ssa.gov and factor it into your retirement income projection alongside savings — but do not count it toward the benchmark numbers.