How Much Should You Be Saving at Every Age?

How much should you be saving at every age? You’re not alone. It’s one of the most frequently asked personal finance questions—and while there’s no one-size-fits-all answer, there are helpful benchmarks to guide you.

Whether you’re in your 20s starting your career or in your 60s prepping for retirement, understanding where you stand financially can help you make smarter decisions.

This age-by-age saving guide breaks down realistic goals and tips for each stage of life, helping you stay on track and build long-term financial confidence.

Why Age-Based Saving Goals Are So Useful

As your life evolves, so should your approach to saving. Income, expenses, and financial responsibilities shift with each decade. Age-based savings goals act like mile markers on your financial journey—giving you clear targets and helping you avoid unpleasant surprises down the line.

How Much to Save by Age: A Decade-by-Decade Guide

In Your 20s: Build Habits Early

Goal: By age 30, aim to save 1x your annual salary.

Your 20s are about forming strong financial habits. You’re likely juggling student loans, entry-level income, and rent—but now’s the time to set the foundation.

Focus on:

• Emergency fund: Save 3–6 months of expenses.
• Start investing: Contribute to a 401(k) or Roth IRA—even a small amount matters.
• Track spending: Use budgeting apps or spreadsheets to stay on top of cash flow.

Tip: If your employer offers a 401(k) match, take it. It’s free money.

Learn more about starting your retirement savings early.

In Your 30s: Ramp It Up

Goal: By age 40, have 3x your salary saved.

By now, your income may be higher, but so are your expenses—think home, kids, and life in full swing. Time to accelerate your savings.

Focus on:

• Boost retirement contributions: Aim for 15% of your income.
• Revisit your emergency fund: Make sure it covers growing responsibilities.
• Diversify your investments: Consider index funds or ETFs outside of retirement accounts.

Tip: Beware of lifestyle inflation. Just because you earn more doesn’t mean you should spend more.

In Your 40s: Prioritize and Refine

Goal: By age 50, aim for 6x your salary.

This is your financial halftime. If you’re behind, it’s not too late to catch up. If you’re on track, keep the momentum going.

Focus on:

• Catch-up contributions: Take advantage of higher limits in your 401(k) and IRA.
• Trim the budget: Reallocate funds from non-essentials to savings.
• Balance goals: If you’re helping kids with college, don’t neglect retirement.

Tip: Consider meeting with a certified financial planner to fine-tune your strategy.

In Your 50s: Maximize Every Dollar

Goal: By age 60, target 8x your salary.

Retirement is on the horizon. It’s time to solidify your strategy and reduce risks.

Focus on:

• Max out contributions: Use catch-up limits to supercharge savings.
• Minimize debt: Pay off your mortgage if possible.
• Estimate retirement needs: Understand how much annual income you’ll need.

Tip: Review your asset allocation and dial back risk if needed.

Check out the IRS limits on catch-up contributions.

In Your 60s: Transition to Retirement

Goal: By retirement, aim for 10x your salary.

You’ve worked hard. Now it’s about preserving wealth and drawing it down strategically.

Focus on:

• Build a withdrawal plan: Determine how much you can take out annually.
• Delay Social Security: Waiting until age 70 can boost your monthly benefit.
• Cover healthcare: Understand your Medicare options and out-of-pocket costs.

Tip: Consult a retirement advisor to avoid costly missteps during the transition.

Smart Saving Tips That Work at Any Age

No matter where you are in life, these tips will help:

• Automate your savings to make it effortless.
• Increase savings with every raise to avoid lifestyle inflation.
• Live below your means to build long-term wealth.
• Review your finances annually to stay aligned with life changes.

Try a savings calculator to see if you’re on track.

Progress Over Perfection

Reaching your savings goals is a marathon, not a sprint. Don’t stress if you’re not exactly on target. The important thing is to keep moving forward. Check your current savings, pick a goal that fits your age, and take one action to boost your progress today. Small changes now can lead to big results later.