Retirement Savings by Age: Are You On Track?
Real benchmarks for every decade—find out where you should be and what to do if you're behind.
By CashSmartGuide Editorial Team - Last updated: January 2026 | 6 min read
You're 35 with $40,000 saved for retirement. Is that good? Terrible? Right on track? Without benchmarks, you're flying blind.
Most people have no idea whether they're saving enough until it's too late to fix easily. They hit 55, check their 401(k) balance, and realize they're $500,000 short. Now their only options are working until 70 or cutting their retirement lifestyle in half.
This guide shows you exactly where you should be at every age, from your 20s through your 60s. Compare your numbers to these benchmarks, and you'll know immediately whether you need to adjust course or if you're doing just fine.
The Quick Answer
By age 30, aim for 1x your annual salary saved. By 40, aim for 3x. By 50, aim for 6x. By 60, aim for 8x. By retirement at 67, you should have 10x your annual salary saved.
If you earn $60,000 at age 40, you should have around $180,000 saved. If you earn $80,000 at age 50, target $480,000. These benchmarks assume you want to maintain your current lifestyle in retirement.
The Savings Multiple Formula
The simplest way to track retirement progress is using salary multiples. This method scales automatically whether you earn $40,000 or $150,000.
How It Works
Take your current annual salary and multiply it by the target number for your age. That's how much you should have saved across all retirement accounts.
Example 1: You're 35 earning $70,000/year
Target: 2x salary = $140,000 saved
Example 2: You're 50 earning $95,000/year
Target: 6x salary = $570,000 saved
Why Salary Multiples?
Your retirement spending is tied to your current income. Someone earning $50,000 lives differently than someone earning $150,000. Salary multiples ensure your retirement savings match your actual lifestyle, not some arbitrary dollar amount.
Retirement Savings Benchmarks by Age
Here's where you should be at each milestone. These assume you're saving consistently throughout your career.
Age 25
Target: 0.5x Annual Salary
You're just starting out. Most people at 25 are focused on paying off student loans and building emergency funds, not retirement. But if you can start saving even a little now, compound interest works magic.
Real numbers:
Earning $45,000 → Target: $22,500 saved
Earning $55,000 → Target: $27,500 saved
Age 30
Target: 1x Annual Salary
This is the first real checkpoint. By 30, you should have your full annual salary saved. This seems like a lot, but if you started contributing at 22-25, it's doable.
Real numbers:
Earning $50,000 → Target: $50,000 saved
Earning $65,000 → Target: $65,000 saved
Earning $80,000 → Target: $80,000 saved
Age 35
Target: 2x Annual Salary
Your career is established. Your salary is higher than it was at 30. You should now have double your annual income saved. This is where compound growth really kicks in.
Real numbers:
Earning $60,000 → Target: $120,000 saved
Earning $75,000 → Target: $150,000 saved
Earning $90,000 → Target: $180,000 saved
Age 40
Target: 3x Annual Salary
The halfway point to retirement. If you're on track at 40, you're in excellent shape. Three times your salary means your savings are working for you through compound returns.
Real numbers:
Earning $70,000 → Target: $210,000 saved
Earning $85,000 → Target: $255,000 saved
Earning $100,000 → Target: $300,000 saved
Age 45
Target: 4x Annual Salary
Your earning peak is likely here or coming soon. Four times your salary means you're building serious retirement wealth. Your investments are compounding significantly.
Real numbers:
Earning $80,000 → Target: $320,000 saved
Earning $95,000 → Target: $380,000 saved
Earning $110,000 → Target: $440,000 saved
Age 50
Target: 6x Annual Salary
The big milestone. Six times your salary means retirement is coming into view. You can now use catch-up contributions—an extra $7,500 for 401(k)s and $1,000 for IRAs in 2026.
Real numbers:
Earning $75,000 → Target: $450,000 saved
Earning $90,000 → Target: $540,000 saved
Earning $105,000 → Target: $630,000 saved
Age 55
Target: 7x Annual Salary
Retirement is 10-12 years away. Seven times your salary puts you in strong position. Start thinking seriously about when you'll retire and what your expenses will look like.
Real numbers:
Earning $85,000 → Target: $595,000 saved
Earning $100,000 → Target: $700,000 saved
Earning $120,000 → Target: $840,000 saved
Age 60
Target: 8x Annual Salary
You're in the final stretch. Eight times your salary means you're almost there. Start shifting your portfolio to more conservative investments to protect what you've built.
Real numbers:
Earning $80,000 → Target: $640,000 saved
Earning $95,000 → Target: $760,000 saved
Earning $110,000 → Target: $880,000 saved
Age 67 (Retirement)
Target: 10x Annual Salary
The finish line. Ten times your final working salary should fund a comfortable retirement using the 4% withdrawal rule. Combined with Social Security, you're set.
Real numbers:
Final salary $70,000 → Target: $700,000 saved
Final salary $90,000 → Target: $900,000 saved
Final salary $110,000 → Target: $1,100,000 saved
Quick Reference: Savings Targets
| Age | Target Multiple | $60K Salary | $80K Salary | $100K Salary |
|---|---|---|---|---|
| 25 | 0.5x | $30,000 | $40,000 | $50,000 |
| 30 | 1x | $60,000 | $80,000 | $100,000 |
| 35 | 2x | $120,000 | $160,000 | $200,000 |
| 40 | 3x | $180,000 | $240,000 | $300,000 |
| 45 | 4x | $240,000 | $320,000 | $400,000 |
| 50 | 6x | $360,000 | $480,000 | $600,000 |
| 55 | 7x | $420,000 | $560,000 | $700,000 |
| 60 | 8x | $480,000 | $640,000 | $800,000 |
| 67 | 10x | $600,000 | $800,000 | $1,000,000 |
What to Do If You're Behind
Most people are behind at some point. Life happens—medical bills, kids' college, divorce, job loss. Here's how to catch up based on how far behind you are.
Slightly Behind (Within 1-2x Salary)
You're at 1x salary when you should be at 2x. Fixable with moderate changes.
- Increase 401(k) contribution by 2-3% immediately
- Direct any raises entirely to retirement savings for 2-3 years
- Open an IRA if you haven't already and contribute regularly
Moderately Behind (Within 3-4x Salary)
You're at 2x salary when you should be at 5x. Requires aggressive action.
- Max out 401(k) contributions if possible
- Use catch-up contributions starting at age 50
- Consider working 2-3 years past your planned retirement date
- Cut discretionary spending and funnel it to savings
Significantly Behind (5x+ Salary Short)
You're at 1x when you should be at 6x. Needs major lifestyle changes.
- Plan to work until age 70
- Downsize your home and invest the proceeds
- Move to a lower cost-of-living area in retirement
- Consider part-time work in early retirement years
- Adjust expectations—plan for a more modest retirement lifestyle
Why These Benchmarks Work
These targets aren't random. They're based on the 4% withdrawal rule and the assumption that you'll need 80% of your pre-retirement income to maintain your lifestyle.
The Math Behind 10x Salary
If you have 10x your final salary saved and withdraw 4% annually, you're replacing 40% of your income from savings. Social Security typically replaces another 30-40%. Together, that's 70-80% of your pre-retirement income—exactly what most people need.
Example: You retire earning $80,000/year with $800,000 saved.
• 4% withdrawal = $32,000/year from savings
• Social Security = $28,000/year (average)
• Total retirement income: $60,000/year (75% of working income)
Common Questions
What if my salary jumped recently?
Use your current salary for the calculation. If you got a big raise at 38, don't worry that you're "behind" the 2x target at 35. You'll catch up as your higher salary compounds over the next decade.
Should I include my house value?
No. These benchmarks are for liquid retirement accounts only. Your home isn't retirement savings unless you plan to sell, downsize, and invest the difference. Home equity is a bonus, not part of the calculation.
I'm ahead of schedule. Can I save less?
Being ahead is great, but don't stop saving entirely. Market downturns happen. Healthcare costs are unpredictable. Having more than the target gives you flexibility and peace of mind. At minimum, keep contributing enough to get your full employer match.
What if I started saving late?
Starting at 40 means you missed the early compounding years, but you can still build a solid nest egg. You'll need to save a higher percentage of your income—possibly 20-25% instead of 15%—and may need to work a few extra years. It's doable, just requires discipline.
The Bottom Line
Knowing where you should be at each age takes the guesswork out of retirement planning. The salary multiple approach is simple—just multiply your current income by your age's target number and see how you stack up.
If you're behind, don't panic. Every age has a recovery strategy. Small changes now compound into big differences over time. Increase your 401(k) by just 2%, and you might close a $100,000 gap over the next 15 years.
Check your progress annually. Life changes, salaries change, expenses change. What matters is trending in the right direction. Hit these benchmarks, and you'll retire with confidence instead of crossing your fingers and hoping the money lasts.
Related: Plan Your Retirement
Financial Disclaimer
This article provides general educational information about retirement savings benchmarks and should not be considered personalized financial advice. The salary multiple targets discussed are general guidelines based on common retirement planning assumptions and may not be appropriate for every individual's circumstances. Actual retirement needs vary significantly based on lifestyle, health, location, family situation, pension benefits, inheritance expectations, and numerous other factors. Market performance, inflation rates, Social Security benefits, and tax laws are subject to change. Before making retirement planning decisions, consult with qualified financial advisors who can analyze your specific situation and provide personalized recommendations.