How much should I save for retirement?

Author

Edward Jones - Chad Choate, AAMS

Posted on

Jul 26, 2023

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Katherine Tierney, CFA®
Senior Retirement Strategist, Client Needs Research


Key points

  • Deciding how much to save for retirement can be confusing.
  • Average savings benchmarks can show how you compare with others in your age bracket, but not how prepared you are to meet your individual needs. Determining that will require different tools and benchmarks.
  • Your financial security after retirement will be unique to you: It will depend on things you control, such as spending habits and savings and things you don’t, such as financial market volatility and tax rates.
  • To help you get started on an effective long-term strategy, we’ve calculated broad estimates of how much you should have saved during each decade of your career.


How much should I save for retirement?

The bottom-line goal of retirement planning is deceptively simple: accumulating enough money to live the life you want once your career is no longer occupying most of your time or generating a regular paycheck.

Achieving that goal requires asking questions that have no easy answers: How much money will you need? How can you measure your progress toward a target decades in the future?

A financial advisor can help you with those questions, then tailor a financial strategy to help you meet your individual goals.

Often, people trying to figure out how well they’re doing begin by comparing their own savings with those of others in the same age bracket. If you’re curious how you stack up, data collected by the Federal Reserve in its 2019 Survey of Consumer Finances, shown below, can tell you. What those numbers can’t do, though, is tell you how close you are to your goal.

Using them as a gauge is a little like comparing your SAT score with the average of your graduating class in high school to determine whether it’s high enough to get you into a particular university.

The one piece of data that’s crucial is the average SAT score of the freshmen the university admitted. Without that data point, you have no idea whether your score meets the institution’s standards.


Average retirement savings by age

Source: Federal Reserve Survey of Consumer Finances, 1989-2019; https://www.federalreserve.gov/econres/scfindex.htm

It’s the same with retirement: The relevant data point isn’t what others your age have saved but how much money you need yourself. The answer depends almost entirely on you, your habits now and your plans for later.

For example, what’s your average monthly spending today and do you expect to maintain it after retirement? Do you expect to relocate? If so, will you live in a region where the cost of living is higher or lower than where you are now? How do you plan to spend your time — traveling the world in style or volunteering in your neighborhood and working in your garden?

To help you begin evaluating your progress, we’ve developed generalized benchmarks, below, that are more useful, and more detailed, than average savings levels for someone retiring at age 65.

Retirement savings goalposts by age

Below you'll find generalized age- and salary-benchmarks for investment levels that might let you retire comfortably, using broad assumptions about factors including taxes and spending preferences. For example, if you are 29, making $100,000, you would want a savings of $15,000 - $90,000 to maintain your current lifestyle. (The higher and lower ends of the range reflect differing assumptions about market volatility during your career.)


20s (Ages 20-29)

Age$50,000 salary$100,000 salary$150,000 salary$200,000 salary
20$0 - $0$0 - $0$0 - $40,000$0 - $140,000
21$0 - $0$0 - $0$0 - $65,000$10,000 - $175,000
22$0 - $0$0 - $0$0 - $90,000$45,000 - $210,000
23$0 - $0$0 - $0$0 - $115,000$75,000 - $250,000
24$0 - $5,000$0 - $5,000$20,000 - $140,000$110,000 - $285,000
25$0 - $10,000$0 - $20,000$45,000 - $170,000$145,000 - $325,000
26$0 - $20000$0 - $35,000$70,000 - $195,000$180,000 - $365,000
27$0 - $25,000$0 - $55,000$95,000 - $225,000$215,000 - $405,000
28$0 - $35,000$0 - $70,000$120,000 - $255,000$250,000 - $450,000
29$5,000 - $45,000$15,000 - $90,000$150,000 - $285,000$290,000 - $495,000



30s (Ages 30-39)

Age$50,000 salary$100,000 salary$150,000 salary$200,000 salary
30$15,000 - $55,000$30,000 - $105,000$175,000 - $320,000$330,000 - $540,000
31$25,000 - $60,000$45,000 - $125,000$205,000 - $35,0000$370,000 - $585,000
32$30,000 - $70,000$60,000 - $145,000$230,000 - $385,000$410,000 - $635,000
33$40,000 - $80,000$80,000 - $165,000$260,000 - $420,000$455,000 - $685,000
34$50,000 - $90,000$95,000 - $185,000$295,000 - $455,000$495,000 - $735,000
35$60,000 - $100,000$115,000 - $205,000$325,000 - $490,000$545,000 - $785,000
36$65,000 - $115,000$135,000 - $225,000$355,000 - $525,000$590,000 - $840,000
37$75,000 - $125,000$155,000 - $245,000$390,000 - $565,000$640,000 - $895,000
38$85,000 - $135,000$175,000 - $270,000$420,00 - $605,000$685,000 - $950,000
39$95,000 - $145,000$195,000 - $29,5000$460,000 - $645,000$740,000 - $1,010,000


40s (Ages 40-49)

Age$50,000 salary$100,000 salary$150,000 salary$200,000 salary
40$105,000 - $160,000$215,000 - $315,000$500,000 - $690,000$790,000 - $1,070,000
41$120,000 - $170,000$235,000 - $340,000$535,000 - $730,000$845,000 - $1,135,000
42$130,000 - $185,000$260,000 - $365,000$575,000 - $775,000$900,000 - $1,195,000
43$140,000 - $195,000$280,000 - $395,000$615,000 - $820,000$955,000 - $1,260,000
44$155,000 - $210,000$305,000 - $420,000$655,000 - $870,000$1,01,5000 - $1,330,000
45$165,000 - $225,000$330,000 - $450,000$695,000 - $915,000$1,075,000 - $1,400,000
46$175,000 - $240,000$355,000 - $475,000$740,000 - $965,000$1,140,000 - $1,470,000
47$190,000 - $255,000$380,000 - $505,000$785,000 - $1,020,000$1,200,000 - $1,545,000
48$205,000 - $270,000$405,000 - $535,000$830,000 - $1,070,000$1,270,000 - $1,620,000
49$215,000 - $285,000$435,000 - $565,000$880,000 - $1,125,000$1,335,000 - $1,700,000

50s (Ages 50-59)

Age$50,000 salary$100,000 salary$150,000 salary$200,000 salary
50$230,000 - $300,000$465,000 - $600,000$930,000 - $1,180,000$1,405,00 - $1,780,000
51$245,000 - $315,000$490,000 - $630,000$980,000 - $1,240,000$1,475,000 - $1,860,000
52$260,000 - $335,000$520,000 - $665,000$1,030,000 - $1,300,000$1,550,000 - $1,945,000
53$275,000 - $350,000$550,000 - $700,000$1,085,000 - $1,360,000$1,625,000 - $2,035,000
54$290,000 - $370,000$585,000 - $735,000$1,135,000 - $1,420,000$1,705,000 - $2,125,000
55$310,000 - $385,000$615,000 - $775,000$1,195,000 - $1,485,000$1,785,000 - $2,215,000
56$325,000 - $405,000$650,000 - $810,000$1,250,000 - $1,555,000$1,870,000 - $2,315,000
57$340,000 - $425,000$685,000 - $850,000$1,310,000 - $1,620,000$1,955,000 - $2,410,000
58$360,000 - $445,000$720,000 - $890,000$1,370,000 - $1,690,000$2,040,000 - $2,510,000
59$380,000 - $46,5000$755,000 - $930,000$1,435,000 - $1,765,000$2,135,000 - $2,615,000


60s (Ages 60-69)

Age$50,000 salary$100,000 salary$150,000 salary$200,000 salary
60$395,000 - $485,000$795,000 - $975,000$1,500,000 - $1,840,000$2,225,000 - $2,725,000
61$415,000 - $510,000$830,000 - $1,020,000$1,565,000 - $1,915,000$2,320,000 - $2,835,000
62$435,000 - $530,000$870,000 - $1,065,000$1,635,000 - $1,995,000$2,420,000 - $2,945,000
63$455,000 - $555,000$910,000 - $1,110,000$1,705,000 - $2,075,000$2,520,000 - $3,065,000
64$475,000 - $580,000$955,000 - $1,155,000$1,780,000 - $2,160,000$2,625,000 - $3,185,000
65$500,000 - $605,000$995,000 - $1,205,000$1,855,000 - $2,245,000$2,735,000 - $3,305,000



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