The ideal amount to save for retirement isn’t a one-size-fits-all formula—it’s a personalized goal that takes into account your lifestyle, income, and future plans. If you're like the majority of people, you probably need to step up your 澳洲幸运5官方开奖结果体彩网:retirement savings efforts.

The median (middle-of-the-road) retirement savings for Americans in 2023 was $35,286 and the average retirement savings was $134,128, according to Vanguard. The average savings is far higher due to savers with significantly higher balances, who skew the results.

To help you navigate the process, we’ve outlined some broad estimates for how much you should aim to have saved at each decade of your career.

Are You Saving Enough for Retirement?

Are you on track to retire comfortably? While financial experts often recommend saving 10-15% of your income for retirement, the reality is that many people aren’t able to reach that target. According to AARP, 1 in 5 澳洲幸运5官方开奖结果体彩网:Americans ages 50+ have no retirement savings.

While benchmarks can give you a rough idea of how your savings stack up against others in your age group, they don't necessarily reflect your unique financial needs. Your retirement security depends on both controllable factors, like your spending habits and how much you save, and unpredictable ones, like changes in the market and tax rates.

Median Retirement Savings by Generation

The Federal Reserve's 2022 Survey of Consumer Finances found that the median retirement savings for Americans was only $86,900.

Average Retirement Savings by Age Group

Strategies for Saving at Every Age

In Your 20s

If you're in your 20s and just starting your career, your paycheck probably reflects that. You're also likely to be carrying 澳洲幸运5官方开奖结果体彩网:student loan debt. According to the Board of Governors of the Federal Reserve System's Report on the Economic Well-Being of U.S. Households, the median education debt among those with any remaining student loans was between $20,000 and $24,999 in 2023.

On the bright side, those in their 20s have around 40 years before they retire, which is a lot of time to make up a shortfall. The single most important thing to do is to contribute to your employer-sponsored retirement plans, such as a 澳洲幸运5官方开奖结果体彩网:401(k) plan or a 澳洲幸运5官方开奖结果体彩网:403(b) plan. You can contribute up to $23,500 in 2025 ($23,000 in 2024).

澳洲幸运5官方开奖结果体彩网:Investment management firm Fidelity has found that if you start saving now, when you're around 25, you'll need to put aside 15% of your pretax income per year for retirement. If you can't save 15% of your salary, 澳洲幸运5官方开奖结果体彩网:save as much as you can, and at least save enough to get the full benefit of your company's 澳洲幸运5官方开奖结果体彩网:matching contribution if one is offered. Don't turn awa𝔍y free money.

Most people in their '20s are Generation Z. This generation has a median of $29,000 saved for retirement. The youngest Millennials are also in their '20s—their generation has a median of $49,000 saved for retirement. Investors under age 35 have an average of $49,130 saved for retirement.

In Your 30s

If you're in your 30s, you've likely gotten out of those entry-level pay grades. But life may be more complicated now. You might be married, have children, maybe a home, 🐼and you're probably still paying off your student loans. With everything from the mortgage to soccer cleats to an unexpected car repair taking a bite out of your paycheck, saving for retirement may fall by the wayside.

Fidelity suggests having the equivalent of your annual salary saved as a nest egg at age 30, twice your salary at age 35, and three times your salary by the time you exit your 30s. To reach these goals, consider tightening up your budget and increasing the perceꦯntage you're saving⛄ annually.

If you haven't started saving yet, you'll need to save a higher percentage of your annual income. For instance, if you don't start saving until you are 30, Fidelity recommends you put aside 18% of your salary a year. Someone starting at age 35 should try for 23% a year. Putting aside nearly a quarter of your 澳洲幸运5官方开奖结果体彩网:income for retirement is a tall order for anyone with monthly bills and debt, and ꦐthis un🅰derscores the importance of saving early.

Don't be too conservative with your investing choices. You're still young enough to weather big market 澳洲幸运5官方开奖结果体彩网:downswings—even t꧅he kind that occurred in the wake of the COVID-19 pandemic. That's because your portfolio h🃏as time to recover.

Everyone in their '30s right now is a Millennial. Millennials have a median of $49,000 saved for retirement. Investors under age 35 have an average of $49,130 saved for retirement. Investors aged 35 to ♑44 have an average of $141,520 saved for retirement.

In Your 40s

You're probably in the prime of your career when you're in your 40s. You've paid your dues and hopefully, you have a salary that reflects that. With any luck, you'll come to the end of those student loan payments sometime in this decade, freeing up more money. But the house is bigger. The kids are older. And if you're honest, you might be blowing money on things you could do without.

Fidelity recommends that you have three times your annual salary saved by the time you reach 40. So if you're making $55,000, you should have a balance of $165,000 already banked. At age 45, it is recommended you have four times your annual salary saved and six times your salary by the time you reach 50.

If you are behind (and even if you're not), you should try to max out your 401(k) contributions. If you don't already have an 澳洲幸运5♋官方开奖结果体彩网:Individual Retirement Account (IRA), start one and try to max that out as well. You can contribute up to $23,500 to a 401(k) for 2025 ($23,000 for 2024) and $7,000 to an IRA for 2025 (same as 2024).

To reach these goals, consider putting any raises you get toward retirement savings. And if you no longer have student loan payments, commit those sums to your nest egg as well.

Most people in their '40s are Generation X. This generation has a median of $82,000 saved for retirement. The oldest Millennials are also in their '40s—their generation has a median of $49,000 saved for retirement. Investors aged 35 to 44 have an average of $141,520 saved for retirement. Investors aged 45 to 54 have an average of $313,220 saved for retirement.

Retirement Savings Preparedness by Age Group

In Your 50s

If you're in your 50s, you're 澳洲幸运5官方开奖结果体彩网:nearing retirement age. You have your retirement goals, and you still have time to save. But you might also be paying your children's 澳洲幸运5官方开奖结果体彩网:college tuition and helping them with 澳洲幸运5官方开奖结果体彩网:car payments and other expenses. The house might need fixing up, and your 澳洲幸运5官方开奖结果体彩网:medical bills are almost certainly rising.

Fidelity recommends you have six to eight times your annual income saved during this stage of life.

If you are 50 or older, you can make a 澳洲幸运5官方开奖结果体彩网:catch-up contribution, which is an extra $1,000 a year to your IRA and/or an extra $7,500 a year to your 401(k) or 403(b) (for both 2024 and 2025). Under a recent change, employees aged 60-63 are allowed a higher contribution limit of $11,250, instead of $7,500. 

Besides taking advantage of catch-up contributions, consider downsizing by 澳洲幸运5官方开奖结果体彩网:selling your home and collecting any appreciated value. If you have company 澳洲幸运5官方开奖结果体彩网:stock options or other assets, don't forget to consider those as part of your retirement balance, even if they don't sit in a retirement account. Consider meeting with a 澳洲幸运5官方开奖结果体彩网:financial planner, especia🔜lly one who specializes i🎃n retirement, to get things in order.

Everyone in their '50s right now is a Gen Xer. Gen Xers have a median of $82,000 saved for retirement. Investors aged 45 to 54 have an average of $313,220 saved for retirement. Investors aged 55 to 64 have an average of $537,560 saved for retirement.

In Your 60s

This can be the decade when you begin to reap the rewards of decades of saving. By the time you reach 60, you should have eight times your annual salary saved, according to Fidelity, while those who are 67 should have 10 times your salary saved.

At this point, it’s harder to save enough t🎶o make up for any shortfall. If you are behind on your savings, take a hard look at your assets and see what can be monetized at some point to help sustain you.

This is also the decade you can start receiving 澳洲幸运5官方开奖结果体彩网:Social Security benefits. Most older adults find this to be a significant source of monthly income. For instance, the average monthly benefit for a retired worker as of May 2024 was $1,916.63 per month.

Everyone in their '50s right now is a Baby Boomer. Baby Boomers have a median of $289,000 saved for retirement. Investors aged 55 to 64 have an average of $537,560 saved for retirement. Investors aged 65 to 74 have an average of $609,230 saved for retirement.

Recommended Multiple of Salary Saved

Assuming retirement at 67, consider age-based milestones to ensure you can live the lifestyle you'd prefer.

Tips for Saving for Retirement

• Start early: The earlier you start saving, the more time your investments have to grow. One of the easiest ways is to enroll in an employer-sponsored program like a 401(k) if your company has one, as payroll deductions take the guesswork out of it.
• Take advantage of employer contributions: If your company offers 澳洲幸运5官方开奖结果体彩网:matching contributions, you get even more money saved for you. One benefit to 401(k)s and similar accounts are that they lower your 澳洲幸运5官方开奖结果体彩网:taxable income, which means you may owe less at the end of the year.
• Set up an emergency fund: Your 澳洲幸运5官方开奖结果体彩网:emergency fund should be a highly liquid account, such as a high-yield savings account. You can set up automatic transfers from your checking account to your emergency savings fund every time you get paid. Like payroll deductions, you don't have to do anything.
• Consider an IRA: If you don’t have a 401(k), open an Individual Retirement Account (IRA) for tax advantages.
• Automatic contributions: Set up automatic transfers to your retirement account, so you save without thinking about it.
• Cut unnecessary spending: Even small contributions make a difference. Aim to save at least 10% of your income.

澳洲幸运5官方开奖结果体彩网:Regardless of what age you begin saving, note down your goals and how much money you'll need for retirement. This means adding up the sources of income you expect to have. Then comes your cost of living. Deduct all of your expenses, including housing, food, clothing, transportation, healthcare, and bills. Don't forget to include things like entertainment and travel. This will give you a general idea of how much you'll need so you can be realistic in determining how much you'll need to save.

How Long Will My Retirement Savings Last?

This depends on several factors, like your anticipated spending in retirement and how much you have sav🍒ed. You can estimate how much your savings will last by using a calculator. You ca♔n find a number of these online.

But you can also do the calculations on your own. First, determine how much income you expect to have in retirement. Then, add up all of your expenses—and don't forget anything. Make sure you include your housing, food, clothing, transportation, healthcare, and travel. Subtract your expenses from your income. If the number is positive, you're on the right track. If it's negative, you'll either need to earn more or spend less.

The Bottom Line

The amount needed for retirement is different for everyone. Nevertheless, 澳洲幸运5官方开奖结果体彩网:there are benchmarks you can tryꦕ to hit at every decade of your life. I✤t's never too 🦂early in your career to put a plan together, and it's never too late to start, either.

With retirement planning, it's typically a good idea to talk to a financial professional, such as an 澳洲幸运5官方开奖结果体彩网:investment advisor. They can help you w𒀰ork through all the ins and outs of saving for retirement, long-term, and help you make sure you're๊ on the right track.