Retirement Savings Guide: How Much Should You Have Saved at Every Decade?

• Author: Jenny Wolff
• Posted: 2025-06-16

In June 2025, it's important to think about how much you should have saved up for retirement, whether you're just starting out in your 20s or you're getting closer to the end of your working days.

Let's make it simple to understand what your savings should look like at different stages of your life.
 

Start with Small Steps in Your 20s

When you're in your 20s and reaching 30, try to match your annual salary with your savings. That might sound like a lot, especially when most people around the ages of 25 to 29 only have a bit over $7,000 tucked away.

But starting early and saving consistently, even a small amount, can lead to significant growth in the future due to compound interest.

It's suggested that you put away 15% of your income annually from the age of 25, taking advantage of any matching contributions from your employer's 401(k) plan.
 

Pick Up the Pace in Your 30s

By the time you hit 40, aim to have three times your annual income in savings. Your 30s might come with higher earnings but also bigger expenses, like student loans, a mortgage, or the costs of raising children.

The average savings for this age group ranges from $9,500 to $13,000. It might feel tough, but setting goals can help you stay on track. Begin where you're at, automate your savings, and regularly reassess your finances.
 

Focus on Your Future in Your 40s

The goal at 50 is to have saved six times your annual salary. Though this is the decade where your finances might be most stretched - with potential costs like your children's education or caring for aging parents - it's essential to continue saving.

Experts recommend saving 20% of your income and making wise investment choices with your pension and 401(k) funds. The average savings in this age bracket is around $16,000, but there's still time to ramp up your savings and cut back on unnecessary expenses.
 

Recommit in Your 50s

When you reach 60, your savings target is eight times your yearly wage. Typically, people in their 50s have saved about $16,000 to $17,000.

If you're behind, don't worry; you can still catch up. Continue to focus on reducing debts, like paying off the mortgage, and save persistently.
 

Transition in Your 60s

By 67, your goal should be to have ten times your annual earnings saved. As you approach retirement, some might keep working, while others might start to use their savings.

On average, individuals in their 60s have accumulated $14,400, which may not seem like much, but remember, some have already retired and may not be counted in this figure.

Keep up your savings if you're employed, gradually switch to less risky investments, and ensure you keep several months' worth of living costs accessible for emergencies.

While saving for retirement, understand that life can be unpredictable, and few people have a perfect savings journey. Job changes and financial emergencies happen.

The key to success is to start as soon as you can and save consistently. Focus on what steps you can take today, rather than comparing yourself to an ideal, and just keep moving forward.

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