How Much Should You Save for Retirement by Age?

Quick Answer

Fidelity retirement savings benchmarks suggest having 1x your annual salary saved by age 30, 3x by 40, 6x by 50, and 10x by 67 (retirement). For a $70,000 earner, that's $70,000 saved by 30, $210,000 by 40, etc. These are guidelines; actual targets depend on your spending needs, Social Security, and expected lifespan. Use the /products/retirement-budgeting tool to calculate your specific target.

Fidelity Retirement Savings Benchmarks

Fidelity, one of the largest 401(k) administrators, publishes industry-standard benchmarks based on decades of retirement data. These assume:

• Starting to save at 25.
• Retiring at 67.
• Living to age 92.
• 6% annual return on investments.
• 2% wage growth per year.
• Inflation of 2.5% annually.

For a $100,000 earner: $100,000 by 30, $300,000 by 40, $600,000 by 50, $1,000,000 by 67.

For a $50,000 earner: $50,000 by 30, $150,000 by 40, $300,000 by 50, $500,000 by 67.

These benchmarks account for employer matches (~3% of salary annually), which significantly accelerate savings.

How These Benchmarks Are Calculated

The formula assumes:

1. Employer provides a 3% match (many employers do).
2. Employee contributes 6% of salary (total 9% saved including match).
3. Employer pays half of employee's Social Security and Medicare (FICA).
4. Annual raises approximate inflation (so real salary growth is minimal).
5. Investments earn 6% annual return (historical stock market average is 10%, but this accounts for bonds, inflation, fees).
6. Withdrawals in retirement start at 4% of portfolio value (the "4% rule").

At 4% withdrawal rate, a $700,000 portfolio generates $28,000/year. Combined with Social Security (~$35,000/year average), total retirement income is $63,000—roughly 90% of pre-retirement salary ($70,000).

Falling Behind: What To Do

If you're behind the benchmarks, don't panic:

Age 30 and behind?

• Max out 401(k) ($23,500 + employer match ~$3,000 = $26,500/year).
• Add Roth IRA ($7,000/year).
• Total savings: $33,500/year.
• After 10 years (age 40), assuming 8% growth: $520,000 (higher than 3x salary benchmark for many earners).

Even starting late, aggressive saving catches up quickly.

Age 40 and behind?

• Increase contributions (if possible).
• Work longer (each extra year delays withdrawals and increases savings).
• Plan to spend less in retirement.
• Delay Social Security (claiming at 70 instead of 62 increases benefits ~24%/year).

Age 50+?

• Max out catch-up contributions: $31,000 401(k) + $8,000 Roth IRA = $39,000/year.
• Maximize employer match.
• If self-employed, max SEP-IRA or Solo 401(k) ($69,000).
• Work longer if possible.

Adjusting for Your Circumstances

The Fidelity benchmarks are averages. Your target might differ:

Factors to increase your target:

• High lifestyle spending (expensive home, frequent travel, healthcare costs).
• Longer life expectancy (family history of longevity).
• Early retirement (retiring at 55 instead of 67 means more years to fund).
• No Social Security (self-employed, not eligible).

Factors to decrease your target:

• Low lifestyle spending (modest home, inexpensive hobbies).
• High Social Security income (high-earning career, delayed claiming).
• Pension income (especially if you have a traditional pension).
• Inheritance or large assets.

The 4% Rule and Withdrawal Strategy

The "4% rule" says you can withdraw 4% of your retirement portfolio in year one, then increase withdrawals by inflation annually, and your money will last 30+ years.

Example: $700,000 portfolio, 4% withdrawal = $28,000 year one.

• Year 2 (assuming 2.5% inflation): $28,700 withdrawal.
• Year 3: $29,418 withdrawal.
• (And so on.)

Research suggests the 4% rule succeeds 90%+ of the time (portfolio doesn't run out before death) given historical returns and spending patterns. More conservative withdrawals (3%) have even higher success rates.

For your retirement savings target: Work backwards from your desired withdrawal amount.

• Desired annual spending: $70,000.
• Social Security: $35,000 (average).
• Withdrawal needed from portfolio: $35,000.
• Portfolio required (at 4% rule): $35,000 / 0.04 = $875,000.

So if you want $70,000/year in retirement and have average Social Security, you need roughly $875,000 saved (higher than the Fidelity $700,000 benchmark for a $70,000 earner, which accounts for higher Social Security for higher earners).

Starting Late: The Power of Catch-Up Contributions

If you're 50+ and behind, catch-up contributions are powerful:

Example: Age 50, $400,000 saved (behind the benchmark of 6x salary = $420,000 for a $70k earner).

Years until 67: 17 years.

Contribution strategy:

• 401(k) deferral + catch-up: $31,000/year.
• Roth IRA + catch-up: $8,000/year.
• Total: $39,000/year.

After 17 years at 8% return: $1,850,000 saved (well above target).

Catch-up contributions ($7,500 for 401(k), $1,000 for IRA) let people age 50+ accelerate savings significantly.

Early Retirement Adjustments

If you want to retire before 67:

Age 55 retirement goal: 12 years until retirement.

• Benchmarks suggest 8x salary ($560,000 for a $70k earner) by 60.
• But retiring at 55 means 4 additional years of withdrawals (ages 55–59 before Social Security).
• Adjusted target: 12–14x salary, depending on lifestyle.

Age 50 retirement goal: 25 years until death (age 75), then relying on Social Security.

• Very aggressive target: 15–20x salary.

Use the /products/fire-calculator tool to model early retirement scenarios.

The Role of Social Security

Social Security provides a guaranteed income floor in retirement. The higher your benefits, the lower your portfolio needs to be.

• High earner claiming at 70: ~$48,000/year (2026 estimate).
• Average earner claiming at 67: ~$35,000/year.
• Low earner claiming at 62: ~$18,000/year.

Someone with $48,000 Social Security needs much less portfolio savings than someone with $18,000.

Claim strategy impact:

• Claiming at 62: ~$28,000/year permanent benefit.
• Claiming at 67: ~$35,000/year permanent benefit.
• Claiming at 70: ~$48,000/year permanent benefit.

Delaying Social Security reduces portfolio requirements significantly. Use the /products/social-security-breakeven tool to determine your break-even age.

Pensions and Retirement Security

If you have a pension (defined benefit plan from a former employer), it reduces your portfolio needs dramatically.

Example: Retiree with $30,000/year pension + $35,000 Social Security = $65,000/year guaranteed income.

If spending is $70,000/year, you only need $5,000/year from your portfolio. At 4% withdrawal rate, a $125,000 portfolio is sufficient. This is far below the Fidelity benchmarks.

Many government and union workers have pensions—take them into account when setting retirement savings targets.

Catch-Up Savings in Your 60s

If you're in your early 60s with less saved than benchmarks, you have options:

1. Max out contributions: $31,000 401(k) + $8,000 Roth + $69,000 SEP (if self-employed) annually.
2. Work longer: Each extra year of work adds savings and delays portfolio depletion.
3. Plan part-time work in early retirement: Earn $30,000–$40,000/year ages 62–67, reducing portfolio withdrawals.

A 62-year-old with $400,000 saved can contribute $40,000/year for 5 years (ages 62–67), reaching $600,000+, then claim Social Security at 67 and work part-time for 5 more years if desired.

Online Tools and Calculators

Use the /products/compound-interest-calculator to model how much your current savings will grow.

Example: $200,000 saved, age 40, earning $70,000/year.

• Assuming $30,000/year additional contribution (9% + 3% match).
• 8% annual return.
• By age 67: $1,450,000.

This significantly exceeds the 10x benchmark, indicating flexibility to spend more or retire earlier.

Sources

• Fidelity. "How Much Should I Have Saved for Retirement?" Fidelity.com.
• Vanguard. "How Much Do I Need to Retire?" Vanguard.com.
• Internal Revenue Service. "Retirement Topics." IRS.gov.
• Social Security Administration. "Benefit Estimates." SSA.gov.
• CFA Institute. "Retirement Savings Benchmarks and Planning."