How Much Should I Have in Savings? (By Age and Income)

There's no universal answer to 'how much should I have saved?' — it depends on your income, goals, lifestyle, and age. But there are proven benchmarks that help you gauge whether you're on track. This guide gives you concrete savings targets by age, explains how to calculate your personal number, and shows you how to get there.

The General Savings Benchmarks by Age

These benchmarks assume you're saving primarily for retirement. They use your annual salary as the measuring stick, which makes them applicable across different income levels:

• By age 30: 1x your annual salary saved
• By age 35: 2x your annual salary
• By age 40: 3x your annual salary
• By age 45: 4x your annual salary
• By age 50: 6x your annual salary
• By age 55: 7x your annual salary
• By age 60: 8x your annual salary
• By retirement (67): 10x your annual salary

These numbers come from Fidelity's research and assume you want to maintain roughly your pre-retirement lifestyle. They're starting points, not rigid rules — your number may be higher or lower depending on your plans.

The Emergency Fund First

Before thinking about retirement savings benchmarks, make sure you have an emergency fund. Financial experts recommend 3-6 months of living expenses in a high-yield savings account. If you have variable income, aim for 6-12 months. This is separate from your retirement savings and should be the first savings goal you hit.

How Much to Save Each Month

The most cited guideline is the 20% rule: save 20% of your gross income. This includes all savings — emergency fund, retirement accounts, and any other goals. If 20% feels impossible right now, start with 10% and increase by 1% every 3-6 months. The habit matters more than the amount when you're starting out.

Savings Goals Beyond Retirement

Most people have multiple savings goals at once. Prioritize in this order: employer 401(k) match (free money, always take it), high-interest debt payoff, emergency fund, then additional retirement savings, then other goals like a home down payment, car, or vacation.

What If You're Behind?

If you're behind the benchmarks, don't panic — and don't try to catch up all at once. Increase your savings rate by 2-3% per year, max out your 401(k) and IRA, and consider working 1-2 extra years. Time in the market still matters even when starting late. $10,000 invested at 55 at 7% annual return becomes $19,700 by 65 — not bad for a late start.