Saving for retirement is important at every stage of life. Your financial priorities may shift throughout your life, but building your retirement savings requires consistency and long-term discipline. The earlier you start—and the more intentional your approach—the more flexibility you may have later in life. 

So, how much should you have saved for retirement by age? Using your age as a benchmark can help you understand whether you are on track to meet your goals. While everyone’s situation is different, many financial planners suggest the following benchmarks at a glance:

Age	Suggested retirement savings target
20s	5-10% of your annual income
30s and 40s	10-15% of your annual income
50s and 60s	20% of your annual income

As you evaluate your progress, you can adjust your savings habits to stay on track or get back to where you need to be. With the right knowledge and tools, you can enter retirement confident that you have enough funds to live comfortably knowing that your hard work has paid off.

How do savings goals change with age?

Generally speaking, your savings goals evolve as your life changes. Early on, you might save to buy a car, attend college, buy a house, and more. Over time, retirement becomes a central priority. 

Your retirement savings typically include the funds you’ve accumulated over your lifetime, such as 401(k) plans and individual retirement accounts (IRAs). These accounts offer tax advantages, whether it is delaying taxes on your nest egg until you withdraw your saved funds, or contributing to your retirement prior to your personal income being taxed. 

As a general guideline when planning for your retirement, many financial professionals suggest saving roughly 15% of your income every year. You can grow your retirement funds by:

• Maximizing employer matching contribution incentives
• Contributing windfalls like tax refunds, bonuses, and inheritances
• Maintaining consistent savings habits over time

Social Security can supplement a portion of your income prior to retirement but may be unlikely to cover all your expenses. Pension plans (which are becoming less common), investments, and part-time employment can help, but they too may be limited in scope.

A general guide to savings goals by age.

These savings goals assume you maintain your current lifestyle in retirement. However, your goals may vary based on factors such as family situation, health, and retirement timeline. Use the following age ranges to help you determine if you are on track with your retirement savings habits—or if you need to make adjustments.

In your 20s: Young adults starting a career

When you’re just starting out, your 20s are the best time to start building strong retirement savings habits. Focus on:

• Consistently saving 5-10% of income toward retirement
• Taking full advantage of employer 401(k) matching
• Establishing an emergency fund with 3–6 months of expenses

Using the 50/30/20 rule—where you separate 50% of your income for needs, 30% for wants, and 20% for savings—can help you create discipline early on.

Building wealth in your 30s and 40s

Saving money at this age can become even more challenging as your finances evolve. Your income may be rising, but so are your responsibilities. You might be starting a family, taking on a mortgage, or settling into a career path you want to grow in. At this stage, aim to:

• Save 10-15% of your annual income
• Reach a retirement savings goal of three times your annual salary by your 40s
• Automate contributions to keep your retirement savings consistent

These years often come with some of the toughest financial circumstances, but it’s important you do not lose sight of retirement. In many ways, now is the time to put a well-planned strategy in place to ensure your financial stability in retirement.

In your 50s and 60s: Older adults nearing retirement

As tempting as it might be to let up on your strict savings habits during these years, avoid cashing out your retirement accounts and jeopardizing your future financial stability. Now is the time to consider:

• Increasing savings to 20% of your income, if possible
• Taking advantage of catch-up contributions with an extra $1,000 a year
• Using remaining funds in your health savings account (HSA)

You may also consider working for a few more years to strengthen your financial foundation. This may help you increase your pension benefits (if applicable) and give you more time to save money. Maximizing your earnings before retirement also includes leveraging extra contributions, such as tax refunds, inheritance, raises, bonuses, and settlements. When you’re ready to retire, review your investment portfolio to determine whether your risk appetite has changed and whether you want to adjust your approach.

Start building your retirement savings today.

It is never too early or too late to contribute to your retirement savings. Connect with us to schedule a personalized retirement planning session with one of our financial consultants.¹