Average retirement savings by age: A simple guideline for retirement savings is to aim for these amounts by each age:
- Age 30: Save one year’s worth of your salary.
- Age 40: Save three years’ worth of your salary.
- Age 50: Save six years’ worth of your salary.
- Age 60: Save eight years’ worth of your salary.
- Age 67: Save ten years’ worth of your salary.
Many financial experts suggest saving 10–15% of your income starting in your 20s. But how much you save depends on your income and expenses. For instance, a recent graduate with student loans might only manage to save 3–5%, while someone with a higher income and no debt might save up to 25%.
Average Retirement Savings by Age: A Simple Guide
Planning for retirement is important, and knowing how much people typically save by different ages can help you set your own goals. Here’s a breakdown of average retirement savings by age, giving you an idea of what to aim for as you get older.
In Your 20s
In your 20s, retirement may seem far off, and many people have little or no savings during this time. The average savings for people in their 20s is usually under $10,000. Starting to save early, even small amounts, can make a big difference over time.
In Your 30s
By the time you’re in your 30s, you should aim to have at least one year’s salary saved for retirement. On average, people in their 30s have around $25,000 to $50,000 in retirement savings. This is also the time to start contributing regularly to retirement accounts, like a 401(k) or IRA.
In Your 40s
In your 40s, you should have saved about two to three times your annual salary. The average retirement savings for people in their 40s is typically $100,000 to $150,000. It’s a good time to reassess your retirement goals and increase your savings if possible.
In Your 50s
As you get closer to retirement, people in their 50s should aim to have around four to six times their salary saved. On average, savings range between $150,000 and $300,000 at this age. Catch-up contributions can help boost your savings as you near retirement.
In Your 60s
By the time you’re in your 60s and nearing retirement, it’s ideal to have eight to ten times your salary saved. The average retirement savings for people in their 60s is around $300,000 to $500,000 or more, depending on lifestyle needs.
Conclusion
Saving for retirement is different for everyone, but having a general idea of average savings by age can help you track your progress. Start early, save regularly, and adjust your contributions as needed to ensure a comfortable retirement.
