Guide

How Much to Save for Retirement by Age

SPUNK13 · 7 min read · Updated Aug 2026 · Not financial advice

Contents

The age-based benchmarksWhy starting at 25 vs 35 matters so muchThe savings rate that gets you thereCatching up if you're behindWhere to put itThe number is a guide, not a rule

A widely cited set of benchmarks: roughly 1× your salary saved by 30, 3× by 40, 6× by 50, 10× by 67. They're rules of thumb, not guarantees — but they show whether you're on track. Educational only, not financial advice.

The age-based benchmarks

  • By 30: ~1× your annual salary saved.
  • By 40: ~3×.
  • By 50: ~6×.
  • By 60: ~8×.
  • By 67: ~10×.
Behind on one? The number is a target to steer toward, not a verdict.

Why starting at 25 vs 35 matters so much

Because of compounding, a dollar invested at 25 can be worth far more at retirement than one invested at 35 — the early dollars have the most decades to grow. Time in the market usually beats the amount.

The savings rate that gets you there

A common target is saving ~15% of income (including any employer match) for retirement. Start lower if you must, then raise it 1% each year or with every raise until you hit the target.

Catching up if you're behind

Increase your rate, capture the full employer match, use tax-advantaged accounts, and — if you're 50+ — catch-up contributions let you add more. Being behind is common and fixable; the worst move is not starting.

Where to put it

Get the full 401(k) match first, then a Roth IRA, then more 401(k) — the priority order in Roth IRA vs 401(k). Inside those, a low-cost index fund is a common core holding.

The number is a guide, not a rule

Your target depends on when you'll retire, your spending, and other income. Use the benchmarks to check direction, not to panic — consistent contributions over decades matter more than hitting an exact multiple this year.

FAQ

How much should I have saved for retirement by 30?
A common benchmark is roughly one year of your salary saved by age 30, about three times by 40. These are rules of thumb — being close and contributing steadily matters more than the exact figure.
What percentage of income should go to retirement?
A frequently cited target is around 15% of income including any employer match. If that's not possible yet, start lower and increase the rate over time.
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