“How much should I have saved for retirement?” That’s a common question, and for good reason. Building enough retirement savings is critical for financial security. After all, you don’t want to run short of money after you’ve stopped earning a paycheck.
Although a financial planner can help you determine the amount based on your unique needs and circumstances, it can be helpful to consider the average retirement savings by age. These figures can give you a sense of where you stand compared to others in your demographic.
With employer-funded pensions less common than they once were, most people save and invest through employer-sponsored plans, such as 401(k)s, or independently by funding individual retirement accounts. Vanguard’s How America Saves 2026 report shows a record 86% participation rate among eligible employees in the plans they administer.
“I tell everyone to begin saving as early as possible,” says Laurie Rowley, CEO and co-founder of the San Francisco-based Icon Savings Plan, which offers IRAs through payroll deductions.
With the following retirement savings benchmarks, you can compare your financial progress to people in your age group, then learn how you can increase your contributions.
[Read: What Is the Average Retirement Age in the U.S.?]
Average Retirement Savings Balance by Age
Many employers offer 401(k) plans as part of their employee benefits package, making them a common way for people to save and invest for retirement. Fidelity Investments tracked the average balances in these tax-advantaged plans by age. Here are the results for the second quarter of 2026:
| AGE | AVERAGE 401(K) BALANCE |
| 20-24 | $7,700 |
| 25-29 | $26,600 |
| 30-34 | $51,700 |
| 35-39 | $81,600 |
| 40-44 | $120,100 |
| 45-49 | $163,200 |
| 50-54 | $215,700 |
| 55-59 | $260,800 |
| 60-64 | $257,400 |
| 65-69 | $258,800 |
| 70 | $264,500 |
Another way to consider your retirement savings progress is to compare your savings with generational averages. Fidelity broke it down by 401(k) and IRA balances, using 2026 first and second quarter data
:
| GENERATION | 401(k) | IRA |
| Gen Z (born 1997-2012) | $18,000 | $8,000 |
| Millennials (born 1981-1996) | $82,600 | $26,700 |
| Gen X (born 1965-1980) | $215,600 | $118,700 |
| Baby boomers (born 1946-1964) | $260,300 | $286,700 |
However, workers should look beyond averages when setting their own savings goals
, says Ben Bakkum, senior investment strategist for retirement plan provider Betterment. The amount you’ll need can vary based on factors such as your desired retirement lifestyle, health and the cost of living in your area.
Unfortunately, the majority of Americans do not feel financially prepared for retirement. The Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2025 through May 2026 indicated that most people’s savings fell far short of their goals. Only 35% of non-retirees said their retirement savings plan was on track.
| AGE | TAX-PREFERRED RETIREMENT ACCOUNT | DEFINED BENEFIT PENSION | RETIREMENT SAVINGS ON TRACK |
| 18-29 | 38% | 8% | 22% |
| 30-44 | 65% | 18% | 35% |
| 45–59 | 74% | 31% | 43% |
| 60 | 76% | 36% | 53% |
A Rule of Thumb for Retirement Savings
In an ideal world, how much should you have set aside by certain ages? As a general guide
, Fidelity suggests people save for retirement by multiplying their income based on their decade. With that in mind, here is an age-based benchmark table using two annual income examples:
| RETIREMENT SAVINGS BASED ON YOUR ANNUAL INCOME | AGE | INCOME: $65,00 | INCOME: $120,00 |
| 1x | 30 | $65,000 | $120,000 |
| 3x | 40 | $195,000 | $360,000 |
| 6x | 50 | $390,000 | $720,000 |
| 8x | 60 | $520,000 | $960,000 |
| 10x | 67 | $650,000 | $1,200,000 |
Now use your own decade age and income. For example, if you are 40 years old and your income is $50,000, having $150,000 tucked away in a retirement account would be a standard goal. If you’re 50 and earn $100,000, a balance of $600,000 might be right for you.
Financial planners often have their own recommendations for how much people may need in their retirement accounts at different life stages. For instance, Rowley suggests the following savings goals:
| RETIREMENT SAVINGS BASED ON YOUR ANNUAL INCOME | AGE |
| 1x | 35 |
| 5x | 50 |
| 7x | 70 |
If any of these recommendations feel too ambitious, start with just six months’ worth of salary by age 30, says Lamar Brabham, CEO and founder of the Noel Taylor Agency, a financial services firm in Myrtle Beach, South Carolina. Then, work up to having four to five times that amount by age 40.
Determine How Much to Save for Retirement
Before assuming you can’t reach the recommended level of savings, see how your current savings are expected to grow. You may be closer than you think.
“That’s one of the biggest struggles for some people,” says Vanessa N. Martinez, CEO of Expressive Wealth, a Chicago-based wealth consulting firm. “When they see a big number, that seems scary.”
Younger workers who have decades until retirement may find that even a modest amount of savings can grow significantly due to the compounding effect of interest.
For example, if you started contributing to a 401(k) at age 30 with an annual salary of $40,000, received 3% annual raises and contributed 10% of your salary to the account, you would have about $1.86 million by the time you reach age 67, assuming a 7% annual return. However, if you waited until age 45 to start, you would only have about $365,000 in your retirement account.
“We usually talk to (clients) in terms of a combination of balance sheet and cash flow,” Brabham says. While having significant assets is important, retirees need to be able to access their funds to generate a regular income.
Cash flow can come from many income sources, including Social Security benefits. According to the Social Security Administration, the average monthly Social Security retirement benefit in 2026 is approximately $2,071. You may have other investments, rental property or annuities to draw from as well. If you own your home, you may downsize and use the proceeds for additional living expenses.
[Read: How Long Will Your Retirement Savings Last]
How to Save for Retirement in a Volatile Economy
It can be challenging to save when the economy is uncertain. Inflation is pushing costs upward, and layoffs and job insecurity are real concerns.
The Employee Benefit Research Institute’s 2026 Retirement Confidence Survey found that retirement confidence has softened. Craig Copeland, director of wealth benefits research at EBRI, noted that it’s due to a variety of immediate financial pressures and long-term uncertainty.
“Many workers are struggling with debt, inflation and rising housing and health care costs, while retirees are increasingly worried about the future of Social Security and Medicare,” he wrote in the report. “Together, those pressures are making it harder for people to feel secure about their retirement.”.
Of course you can lower or stop contributions, but it can mean losing out on years of potential investment growth. If you must hit the pause button on retirement contributions, try to make it a temporary suspension.
And bear in mind that you can’t change the economy or politics, but you do have control over personal spending. This may be the perfect opportunity to refine your budget so you can add at least a little to your retirement account. Even small, regular contributions will grow due to compound returns. If your employer offers a 401(k) matching contribution, try to contribute enough to receive the full match.
[Read: What Is a Good Monthly Income in Retirement?]
Tips to Boost Your Retirement Savings
If you have access to a 401(k) plan, it usually makes sense to max out your contributions. In 2026, the contribution limit is $23,500, with an additional $8,000 in catch-up contributions if you are 50 or older or $11,250 if you are between 60 and 63. Some employers match employee contributions up to a certain percentage, so if they offer it, take advantage. It’s free money.
If you do not have access to a 401(k) or want to increase your contributions, consider opening and funding an IRA. For 2026, the IRA contribution limit is $7,500 if you are under 50, and $8,600 if you are 50 or older.
Keep in mind that savings will go further in retirement if taxes don’t erode them. After all, the more tax you have to pay, the less cash you have for living expenses. For this reason, Brabham tends to steer his clients toward Roth accounts when they open IRAs. Traditional IRAs offer a tax deduction upfront, but withdrawals are taxed as ordinary income. In contrast, Roth IRAs provide tax-free withdrawals in retirement.
If you don’t think you’ll be able to achieve the cash flow needed for a comfortable retirement, there are several ways to boost the balance in your accounts.
“One of the best ways is to make more money,” Bakkum says. That could mean seeking a better-paying job, taking on additional hours or starting a side business.
Another strategy to boost savings is to cut spending. Martinez suggests using a 50/30/20 budgeting system in which 50% of your income is allocated to essential expenses, 30% can be spent on discretionary items and 20% goes to savings. Many people spend money on things they don’t necessarily want or need, such as subscriptions they forget about, Martinez says. Those on tight budgets should pare down where they can.
While knowing the average retirement savings by age is one way to determine whether you are on track, meeting with a financial advisor may be a better way to check your retirement readiness. Either way, make saving consistently a financial priority to ensure you can retire when and how you want.
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What Is the Average Retirement Savings Balance by Age? originally appeared on usnews.com
Update 07/01/26: This story was published at an earlier date and has been updated with new information.
