Why These Numbers Stress People Out
“How much to save for retirement?” This is a question most people don’t ask out loud—but think about all the time. You might see a headline claiming you need six figures saved by your 30s and wonder if you’re hopelessly behind. Or maybe you’re doing okay, but you’re still unsure if it’s enough.
According to the Federal Reserve’s 2023 Survey of Consumer Finances, nearly 1 in 4 U.S. adults have no retirement savings at all. For Americans between 35 and 44, the average retirement savings by age is about $60,000—a number that might feel encouraging or terrifying, depending on your own situation.
But numbers without context don’t help much. This guide unpacks the most widely accepted savings benchmarks, explains how everyday people are actually doing, and offers real, actionable steps—whether you’re ahead, behind, or just getting started.
Why Do These Benchmarks Exist in the First Place?
The idea of having a certain amount set aside by a certain age isn’t new—it comes from the financial planning industry, where firms like Fidelity, Vanguard, and others aim to provide simple goals to help individuals gauge progress.
They’re based on some core assumptions:
- You’ll retire around age 65–67
- You’ll want to replace about 70–80% of your pre-retirement income
- You’ll live until your mid-80s or beyond
- Your investments will grow by 5–7% annually, adjusted for inflation
These assumptions lead to the common advice that your retirement savings plan should be structured around certain income multiples at key age milestones.
The Most Commonly Cited Retirement Benchmarks by Age
| Age | Recommended Savings Target |
|---|---|
| 30 | 1x your annual salary |
| 40 | 3x your salary |
| 50 | 6x your salary |
| 60 | 8–10x your salary |
Example:
If you make $60,000/year. Your recommended savings target is:
- By 30: $60,000
- By 40: $180,000
- By 50: $360,000
- By 60: $480,000 to $600,000
On paper, these numbers make sense—especially when thinking about the power of compound interest over time. But in practice, not everyone has the stability, income, or early start to hit those targets.
What the Average American Has Saved (And Why It’s Less Than You Think)
Here’s a look at the average retirement savings by age, using the latest available data:
| Age Range | Median Savings (Households) |
|---|---|
| 25–34 | $18,880 |
| 35–44 | $60,000 |
| 45–54 | $100,000 |
| 55–64 | $134,000 |
(Sources: Federal Reserve; Transamerica Institute)
Keep in mind: these are median numbers, meaning half of people have less than this. It’s far below the benchmarks from financial institutions. But this doesn’t mean people are lazy or irresponsible.
The gap exists for many reasons:
- Stagnant wage growth over the past two decades
- Student loan debt delaying saving for retirement
- Rising housing and healthcare costs
- Job instability, gig work, and caregiving duties
In fact, 27% of Americans over age 45 now expect to either work past 70 or never fully retire. Not because they want to—but because the systems built for previous generations don’t align with today’s economic reality.
Why It’s Okay If You’re “Behind” the Average Retirement Savings for Your Age
Let’s be clear: falling short of these benchmarks doesn’t mean you’ve failed. Many people make up ground later in life, especially as expenses like childcare and rent decrease, or income increases with experience.
Plus, most retirement calculators and plans don’t account for:
- Spouses or partners with income
- Pensions, inheritances, or other assets
- Changes in retirement age or lifestyle expectations
In other words, a retirement savings plan should be tailored—not templated. If you’re saving steadily now, that consistency will matter far more than whether you hit a target by your 35th birthday.
What To Do If You’re Feeling Behind
It’s never too late to start. And it’s never too early to adjust. Whether you’re 32 or 52, the same principles apply: focus on small wins, automate progress, and let time work in your favor.
1. Define What Retirement Means to You
Does it mean fully stopping work at 65? Working part-time until 70? Moving somewhere cheaper? You can’t figure out how much to save for retirement if you don’t know what you’re saving toward.
2. Use Simple Tools to Estimate Your Gap
A calculator from Vanguard, Empower, or NerdWallet can give you a clear (and quick) picture. This step alone removes a lot of the guesswork from saving for retirement.
3. Automate Your Contributions
One of the most effective ways to start or scale up is to automate. If you’re wondering how to save for retirement, start by removing the decision fatigue: let it happen in the background.
4. Start Small—and Then Grow
A $100 monthly contribution may not feel like much, but with compounding, it grows significantly over time. As you earn more, aim to increase your contributions by 1–2% annually. That slow ramp-up can double your results over a decade.
5. Take Advantage of Employer Matching
It’s shocking how many people leave this on the table. If your employer offers a match on a 401(k), always try to contribute at least enough to get the full benefit. It’s free money toward your future.
Beyond Retirement: Building a Bigger Financial Picture
A healthy retirement savings plan is just one part of your financial life. You might also be:
- Paying off student loans
- Raising kids
- Starting a business
- Supporting family
- Saving for a home
None of these goals exist in isolation—and sometimes saving for the future takes a back seat to urgent needs today. That’s okay. The goal is to stay aware and intentional. Even when you’re not saving as much as you’d like, the habit of checking in regularly builds lifelong financial resilience.
Final Thoughts: Progress Over Perfection
When you Google “how much to save for retirement,” you’ll get articles filled with numbers, acronyms, and panic-inducing charts. But here’s the truth: no number defines your worth, and no missed target means you’re too far gone.
“Benchmarks are helpful—but they don’t know your story. The best savings plan is one you can actually stick to.”
Whether you’re just getting started, catching up, or cruising steadily ahead, your path is still valid. Stay consistent. Stay informed. And most of all—stay kind to yourself.