How much should you save for retirement at each age?

Retirement. For some, the word conjures images of sandy beaches and endless free time. For others, it’s a source of quiet, persistent anxiety. The single biggest question that looms over decades of our working lives is simple, yet profound: “Am I saving enough?” Without a clear benchmark, it’s easy to feel like you’re flying blind, unsure if your current efforts are putting you on a path to a comfortable future or a stressful one.

The truth is, there is no single magic number that applies to everyone. Your ideal retirement nest egg depends on the lifestyle you envision, your expected expenses, and when you plan to stop working. However, financial experts have developed powerful, time-tested guidelines that can serve as your roadmap.

This guide will break down exactly how much you should aim to have saved at every major age milestone—from your first job in your 20s to your final years in the workforce. We will provide clear, actionable benchmarks and explain the strategies you need to employ during each decade to hit your goals and build a future of financial freedom.

The Foundational Principle: Understanding the Power of Compound Interest

Before we dive into the specific age-based benchmarks, it’s crucial to understand the single most powerful force on your side: compound interest. Albert Einstein called it the eighth wonder of the world for a reason. Compounding is the process where your investment earnings start generating their own earnings, creating a snowball effect that can turn small, consistent contributions into a massive fortune over time.

Consider this:

• Person A (Starts Early): Invests $300 a month from age 25 to 35 ($36,000 total) and then stops, letting it grow.
• Person B (Starts Late): Invests $300 a month from age 35 to 65 ($108,000 total).

Assuming a conservative 7% average annual return, Person A, who only invested for 10 years, will have over $700,000 by age 65. Person B, who invested three times as much money over 30 years, will have only around $365,000.

This isn’t a typo. The decade of growth that Person A’s money had before Person B even started made all the difference. The lesson is undeniable: the single most important factor in your retirement success is not how much money you make, but how much time your money has to grow. Your greatest asset, especially in your 20s and 30s, is time.

Your 20s: Building the Habit and Capturing the Full Employer Match

In your 20s, retirement can feel like a lifetime away. Student loans, rent, and the cost of establishing your life take precedence. However, the financial habits you build during this decade will have an outsized impact on your future.

Savings Goal by Age 30: 1x Your Annual Salary

This may sound intimidating, but it’s achievable. If you earn $55,000 a year, your goal is to have $55,000 saved for retirement by the time you turn 30.

Your Primary Focus:

1. Start a Habit: The goal isn’t to save a huge portion of your income immediately, but to start the habit of consistent saving. Aim to save at least 10-15% of your pre-tax income. If that’s too much, start with 5% and increase it by 1% every year.
2. Capture the 401(k) Match: This is the most important financial advice for any young professional. If your employer offers a 401(k) or 403(b) with a matching contribution, you must contribute enough to get the full match. For example, if your company matches 100% of your contributions up to 5% of your salary, you need to contribute 5%. Not doing so is literally turning down free money—an instant 100% return on your investment.
3. Open a Roth IRA: After you’ve secured the full employer match, consider opening a Roth IRA. Contributions are made with after-tax dollars, meaning your investments grow completely tax-free, and all qualified withdrawals in retirement are also tax-free. This can be incredibly valuable as you anticipate being in a higher tax bracket later in your career.

Your 30s: Accelerating Your Savings and Navigating Life’s Milestones

Your 30s are often a decade of significant life changes. You might get married, buy a house, or have children. These new responsibilities can put a strain on your budget, but this is also the decade where your income is likely to grow, presenting a critical opportunity to ramp up your savings rate.

Savings Goal by Age 40: 3x Your Annual Salary

If your salary has grown to $80,000 by age 40, you should aim to have $240,000 in your retirement accounts.

Your Primary Focus:

1. Increase Your Savings Rate: The 15% rule (including employer match) should be your firm target now. The best way to achieve this without feeling the pinch is to automatically increase your 401(k) contribution percentage every time you get a raise or a bonus. If you get a 3% raise, increase your savings rate by 1-2% before you get used to the bigger paycheck. This strategy, known as “lifestyle creep” prevention, is key.
2. Stay the Course: The 30s might be the first time you experience a significant market downturn or recession as a serious investor. It can be terrifying to see your account balance drop. The most important thing to do is nothing. Do not panic and sell. Your time horizon is still decades long, and selling during a downturn locks in your losses. Continue your automatic contributions; you are essentially buying more shares at a discount.
3. Review Your Investments: Ensure your portfolio is well-diversified. If you’re using a target-date fund in your 401(k) or a robo-advisor, this is largely done for you. If not, make sure you have a healthy mix of U.S. and international stock funds and some bonds.

Your 40s: Hitting Your Peak Earnings and Getting Serious

Your 40s are often your peak earning years. Your career is established, and your income is likely at or near its highest point. This is the power decade for supercharging your retirement savings and making up for any lost ground from your younger years.

Savings Goal by Age 50: 6x Your Annual Salary

With a salary of $110,000, your target nest egg at age 50 would be $660,000.

Your Primary Focus:

1. Max Out Your Retirement Accounts: If possible, your goal should now be to contribute the maximum allowable amount to your 401(k) or other workplace plan. For 2025, this limit is often well over $20,000. After that, max out your IRA contributions as well.
2. Avoid High-Interest Debt: By your 40s, you should be aggressively paying down any high-interest debt like credit cards, which can severely sabotage your ability to save.
3. Consider a Health Savings Account (HSA): If you have a high-deductible health plan, an HSA is a retirement savings powerhouse. It offers a triple tax advantage: contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are also tax-free. It’s one of the most effective retirement savings vehicles available.

Your 50s and 60s: Utilizing Catch-Up Contributions and Planning Your Transition

As you enter your final working decades, the finish line is in sight. Your focus now shifts from pure accumulation to capital preservation and fine-tuning your retirement plan.

Savings Goal by Age 60: 8x Your Annual Salary

Savings Goal by Age 67: 10x Your Annual Salary

If your final salary is $125,000, you should aim for $1 million by age 60 and $1.25 million by your planned retirement age.

Your Primary Focus:

1. Leverage Catch-Up Contributions: The IRS recognizes that many people need to save more in their later years. Once you turn 50, you are eligible to make “catch-up” contributions to your retirement accounts. This allows you to contribute several thousand dollars above the standard annual limit to both your 401(k) and your IRA, significantly accelerating your savings.
2. Define Your Retirement Lifestyle: Now is the time to get specific. What do you want your retirement to look like? How much will it realistically cost? This will help you determine if your savings are on track. A popular guideline is the 4% Rule, which suggests you can safely withdraw 4% of your starting retirement portfolio value each year without depleting your principal. If you have a $1.25 million portfolio, this would provide you with $50,000 per year in income.
3. Plan Your Transition to a More Conservative Portfolio: As you get closer to retirement, you’ll want to gradually shift your investment mix to be more conservative, with a higher allocation to bonds and less to stocks. This helps protect your principal from a sudden market crash right before you need to start drawing income from it.

No matter your age, the best time to start or to get more serious about saving for retirement is today. By using these benchmarks as your guide and committing to a consistent strategy, you can transform the abstract anxiety of retirement planning into a concrete, achievable plan for a secure and prosperous future.