How Much Should You Have Saved for Retirement by Age?

One of the most common financial questions is "Am I saving enough for retirement?" The answer depends on your age, income, lifestyle expectations, and when you plan to retire. Here are widely-cited benchmarks, the reality of where most Americans stand, and actionable strategies to close the gap.

The Fidelity Benchmarks

Financial services firm Fidelity has published retirement savings benchmarks based on multiples of your annual salary. These assume you start saving at age 25, save 15% of your income annually, and plan to maintain your pre-retirement lifestyle:

Age 30: 1x your annual salary saved

Age 35: 2x your salary

Age 40: 3x your salary

Age 45: 4x your salary

Age 50: 6x your salary

Age 55: 7x your salary

Age 60: 8x your salary

Age 67: 10x your salary

For someone earning $80,000 at age 40, that means having $240,000 saved in retirement accounts. By age 67, the target would be $800,000. These are guidelines, not rigid rules — your actual needs depend on your expected retirement spending, Social Security benefits, and any pensions.

The Reality: Where Americans Actually Stand

The Federal Reserve's 2022 Survey of Consumer Finances (SCF) — the most comprehensive household wealth dataset available — reveals a significant gap between benchmarks and reality:

Under 35: Median retirement account balance of $18,880 (mean: $49,130)

35-44: Median of $45,000 (mean: $141,520)

45-54: Median of $115,000 (mean: $313,220)

55-64: Median of $185,000 (mean: $537,560)

65-74: Median of $200,000 (mean: $609,230)

75+: Median of $130,000 (mean: $462,410)

Only about 54% of American families have retirement accounts at all. The large gap between median and mean values in every age group indicates that a relatively small number of high savers are pulling the average up, while the typical household has far less saved.

For a 55-year-old earning $100,000, Fidelity's benchmark says they should have $700,000 saved. The median for that age group is $185,000 — a shortfall of over $500,000. This is why catch-up strategies become critical for workers approaching retirement.

2025 Retirement Contribution Limits

Maximizing tax-advantaged retirement contributions is one of the most effective ways to build retirement wealth. For 2025, the IRS has set the following limits:

401(k), 403(b), most 457 plans: $23,500 per year

Catch-up contributions (age 50-59 and 64+): Additional $7,500 (total: $31,000)

Super catch-up (age 60-63): Additional $11,250 (total: $34,750) — this is a new provision under SECURE Act 2.0

Traditional and Roth IRA: $7,000 per year ($8,000 if age 50+)

The new "super catch-up" provision for workers aged 60 to 63 is especially impactful. A worker in this age range contributing the maximum $34,750 per year to their 401(k) for four years would add $139,000 in contributions alone — before any employer match or investment growth.

The Power of Starting Early

Thanks to compound interest, when you start saving matters as much as how much you save. Here is what $500 per month at a 7% average annual return grows to by age 65:

Starting at age 25 (40 years): $1,312,407

Starting at age 30 (35 years): $907,656

Starting at age 35 (30 years): $609,986

Starting at age 40 (25 years): $395,503

Starting at age 45 (20 years): $245,972

Starting at 25 instead of 35 produces over $700,000 more, despite only $60,000 in additional contributions. The rest — more than $640,000 — comes purely from compound growth on the earlier money. Our guide on compound interest breaks down exactly how this works.

Social Security: A Foundation, Not a Full Solution

Social Security provides a crucial income floor in retirement but was never designed to replace your full salary. As of 2025:

Average monthly retirement benefit: Approximately $1,976 (about $23,700 per year)

Maximum benefit at full retirement age (67): Approximately $4,018 per month ($48,216 per year)

Full retirement age: 67 for anyone born in 1960 or later

For most workers, Social Security replaces roughly 30-40% of pre-retirement income. The remaining 60-70% must come from personal savings, employer pensions, or continued work. This is why personal retirement savings are essential even with Social Security as a backstop.

Strategies to Catch Up

If you are behind on retirement savings, these strategies can help close the gap:

Maximize employer match: If your employer matches 401(k) contributions up to 6% of salary, contribute at least 6%. That match is an immediate 100% return on your money.

Use catch-up contributions: Workers 50+ can contribute an extra $7,500 per year to a 401(k). Workers 60-63 can contribute an extra $11,250.

Automate increases: Set your plan to automatically increase your contribution rate by 1% annually. You will barely notice the difference per paycheck, but it compounds dramatically over a decade.

Consider a Roth conversion: If you expect to be in a higher tax bracket in retirement, converting traditional IRA funds to a Roth IRA (paying taxes now) can save money long-term.

Delay Social Security: Each year you delay benefits past your full retirement age (up to 70) increases your monthly benefit by 8%.

Plan Your Own Retirement

Every situation is unique. Use our Retirement Savings Calculator to project your specific scenario with custom inputs for current savings, monthly contributions, expected returns, and target retirement age. You can also model how different investment returns and tax strategies affect your long-term retirement picture.