Retirement
How Much Should I Save for Retirement at 30, 40 and 50?
A popular rule of thumb from Fidelity suggests saving about 1× your salary by 30, 3× by 40 and 6× by 50. These are rough targets, not rules. What matters is whether your savings rate today can reach the income you will need later.
By the MoneyTools Editorial TeamLast updated 6 min readEditorial Policy
Benchmarks by age
Benchmarks give you a quick check on whether you are on track. One widely cited set comes from Fidelity Investments, which bases its targets on retiring at 67 and keeping a similar lifestyle.
| Age | Savings target | On a $60,000 salary |
|---|---|---|
| 30 | 1× salary | $60,000 |
| 40 | 3× salary | $180,000 |
| 50 | 6× salary | $360,000 |
| 60 | 8× salary | $480,000 |
| 67 | 10× salary | $600,000 |
These multiples assume steady saving, average market returns and a retirement at 67. If you plan to retire earlier, want a bigger budget, or have no pension, aim higher.
What to focus on at each age
At 30
Time is your biggest advantage. Try to save 10%–15% of your income, including any employer match. Even small amounts now have more than 35 years to compound. See Compound Interest With Monthly Contributions for how that adds up.
At 40
Income is often higher, but so are costs like housing and children. Check your savings rate once a year and raise it with each pay increase. Review whether a 401(k) or Roth IRA fits your tax situation.
At 50
You can make extra catch-up contributions to 401(k) plans and IRAs from age 50. Start estimating your retirement budget and when you might claim Social Security.
How much to save each month
Another way to look at it is the monthly saving needed to reach a goal. The table below uses a $1 million target at age 67, a steady 7% yearly return and no starting balance.
| Start saving at | Years to 67 | Monthly saving needed |
|---|---|---|
| 30 | 37 | ≈ $477 |
| 40 | 27 | ≈ $1,045 |
| 50 | 17 | ≈ $2,563 |
Waiting 20 years means saving more than five times as much each month for the same goal.
Worked example
Worked example
Age 40, $60,000 salary, $50,000 saved
- Benchmark at 40: 3 × $60,000 = $180,000, so this saver is $130,000 behind
- Target at 67: 10 × $60,000 = $600,000
- $50,000 growing at 7% for 27 years ≈ $50,000 × 6.58 ≈ $329,000
- Remaining gap ≈ $600,000 − $329,000 = $271,000
- Monthly saving to fill $271,000 in 27 years at 7% ≈ $271,000 ÷ 957 ≈ $283
Saving about $283 a month (under 6% of salary) could close the gap by 67 under these assumptions.
This example shows that being behind a benchmark does not always mean you are far off — the money you already have keeps growing.
If you are behind
- Raise your contribution by 1% of pay each year until you reach your target.
- Make sure you get every dollar of any employer match.
- Use catch-up contributions after 50.
- Pay off high-interest debt to free up monthly cash.
- Consider working a little longer or delaying Social Security, which can raise your benefit.
Check your own plan
Enter your age, savings and contributions in the Retirement Calculator to see a projected balance. Then try the 401(k) Calculator to see the effect of your employer match. For a deeper look at how much you need in total, read How Much Should I Save for Retirement?.
Benchmarks are general guidelines and may not fit your situation. Investment returns vary and are not guaranteed.
Run your own numbers
Estimate how much you need to save to retire comfortably.
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