How Much to Save for Retirement by Age

The quick answer

A useful rule of thumb is to save 15% of your pre-tax income for retirement starting in your 20s. If you begin later, that percentage needs to rise. By age 30, aim to have roughly 1× your salary saved; by 40, 3×; by 50, 6×; and by 60, 8×. These multiples assume you plan to retire around 65 and replace a meaningful share of your income.

The table below turns those milestones into dollar targets at common income levels, plus the monthly savings needed from each age to stay on track. Run your own numbers in the Retirement Savings Calculator.

Savings targets by age

These targets assume a $75,000 annual salary and a retirement age of 65. Adjust the multiples up or down if you plan to retire earlier, expect a lower return, or want a more conservative cushion.

*Monthly savings needed assumes a 7% annual return, 3% annual raises, and a goal of hitting the high-end target by age 65. Your actual required savings may differ.

Salary-multiple milestones

The salary-multiple framework is popular because it scales with your income. Fidelity's research suggests saving 10× your final salary by age 67 to maintain your pre-retirement lifestyle. Other studies land between 8× and 12×, depending on expected Social Security, healthcare costs, and whether you have a pension.

Here is the age-based multiple ladder we use:

• 30: 1× salary
• 35: 2× salary
• 40: 3× salary
• 45: 4× salary
• 50: 6× salary
• 55: 7× salary
• 60: 8× salary
• 67: 10× salary

If your income is $100,000 at age 40, your target range is $300,000–$400,000. The low end is the bare minimum; the high end gives you more flexibility and a longer runway.

Monthly savings targets

The 15% rule works best when you start early. Wait until 35 and you may need 20–25%. Wait until 45 and 30–35% is more realistic if you want to retire at 65. The reason is simple: compounding needs time. A dollar saved at 25 can grow roughly tenfold by 65; a dollar saved at 55 has far less time to multiply.

Use your employer's 401(k) match first. A 50% match on the first 6% of salary is an instant 50% return. After the match, consider an IRA or Roth IRA for lower-cost investment options, then return to the 401(k) for additional pre-tax savings. Our 401(k) Contribution Calculator shows exactly how much free match money you may be leaving on the table.

What if I'm behind?

Most people are. The median retirement savings for Americans in their 50s is well below the recommended multiples. If you're behind, you have four levers:

1. Save more. Even 5% more of your income, sustained for a decade, can close a meaningful gap.
2. Delay retirement. Each extra year of work is one less year of withdrawals and one more year of contributions and compounding.
3. Reduce spending in retirement. A smaller withdrawal target needs a smaller nest egg.
4. Invest more aggressively — carefully. A higher stock allocation can raise expected returns, but it also raises volatility. Don't take risk you can't hold through a bear market.

If you are 50 or older, take advantage of catch-up contributions: an extra $7,500 per year in a 401(k) and an extra $1,000 per year in an IRA as of 2026. These limits change with inflation, so check the current IRS figures.

Worked example

Scenario: Jordan is 35, earns $80,000, and has $60,000 saved. The target for her age is 2× salary, or $160,000. She is $100,000 short.

If she contributes 15% of salary ($12,000/year) to a 401(k) with a 4% employer match ($3,200/year), and earns a 7% annual return, she will have roughly $775,000 by age 65. That is about 9.7× her final salary — above the recommended 10× target at 67, and enough to support a sustainable withdrawal plan.

If she only saves 10%, the projected balance drops to about $520,000. The gap is real, but so is the power of raising the savings rate. Try your own salary, age, and balance in the Retirement Savings Calculator.

FAQ

Does the 15% rule include my employer match?

Most planners count only your own contributions toward the 15% target and treat the match as a bonus. If your total contribution including match reaches 15%, that's even better.

Should I save in a Roth or traditional account?

Traditional saves taxes today; Roth saves taxes in retirement. The better choice usually depends on whether your current tax rate is higher or lower than your expected retirement rate. Our Roth vs Traditional Calculator walks through the math.

What if I want to retire early?

Early retirement means fewer earning years and more withdrawal years. You'll likely need 12×–15× your final salary, or a withdrawal rate lower than 4%. Use the Retirement Withdrawal Calculator to stress-test a longer retirement.

Are these numbers guaranteed?

No. Returns, inflation, job changes, and health events all affect the outcome. Think of these targets as a compass, not a contract. Recheck them every year and adjust as life changes.

More like this in our Investing 101 hub, including The 4% Rule, Explained and How Compound Interest Builds Wealth.