Learn: How Much You Should Have Saved for Retirement by Age

Jan 03, 2023 By Susan Kelly


It’s never too late to start planning for retirement. Even if you haven’t been able to save as much as recommended in previous years, ramping up your savings now can make a big difference down the line. Consider consulting with a financial advisor or retirement planner who can help you develop a realistic plan that fits your unique needs and goals. No matter your age, it’s essential to have an adequate amount saved for retirement to live comfortably during your golden years without worrying about running out of money. Following the guidelines outlined below is one way to help ensure that you’re on track for a secure and comfortable retirement.

Age 25–35

Now is the time to start saving for those just starting their careers. The younger you start saving, the more time your money has to grow throughout your career. Financial advisors recommend contributing 15% of pre-tax income towards retirement. This number might seem high initially, but having enough saved for a comfortable retirement is essential.

Age 35–45

By age 35–45, you should have around three times your salary saved in retirement accounts. This is important because as you get older and move closer to retirement age, your savings will need to generate more income than when you were younger. Having a larger nest egg ensures you’ll be able to retire comfortably and not worry about running out of money during retirement years.

Age 45–55

By age 45–55, you should have saved six times your salary for retirement. It’s important to note that the earlier you start saving for retirement, the less money you’ll need to save each month from hitting this goal. If you’ve started late or haven’t been able to save as much as recommended in previous years, ramping up your savings during this period is essential to meet your retirement goals.

Age 55+

At this stage of life, it’s recommended that you have saved at least eight times your salary for retirement. This will ensure that you can live comfortably and enjoy a good quality of life during your golden years. It’s important to factor the rising cost of living, inflation, and health care costs into your retirement plan.

Benefits of Saving for Retirement Early

When saving for retirement, the earlier you start, the better. Building a future fund early on can provide much-needed security and peace of mind as you move into your later years. The benefits of saving early are plentiful, with both short-term and long-term advantages.

Compounding Interest

One key benefit of beginning to save for retirement in your twenties is that you can take advantage of compounding interest. Compound interest enables your money to grow faster over time because you earn interest on the initial sum deposited and the accumulated interest itself. The longer the savings period, the higher the compounding rate of interest.

Tax Advantages

Another advantage of early retirement savings is the tax benefits associated with saving money for the future. Contributions to a traditional Individual Retirement Account (IRA) are tax-deductible, meaning that if you contribute $5,000 to a traditional IRA, your taxable income for the year will be reduced by $5,000. While withdrawals from a traditional IRA are subject to taxation in retirement, the taxes on withdrawals are likely to be lower than the taxes you would have paid in your peak earning years.

Increased Flexibility

Saving for retirement early can also provide you with more flexibility regarding your future finances. Starting to save in your twenties gives your money more time to grow, meaning you may have access to larger sums later in life. This could enable you to make choices about your retirement that you may not have been able to make if you had started saving later.

Peace of Mind

Starting to save for retirement early will give you peace of mind. Starting early gives you more time to save, allowing your savings to build up over the years. You will also have the time to make mistakes and learn from them along the way. Even small amounts can add up over time, so saving as soon as possible is beneficial.


Saving for retirement is essential to have a secure and comfortable life during your golden years. Knowing how much you should have saved by each age can help you stay on track with your retirement goals. This blog post has provided helpful guidance to assist you in determining the amount of money you need to save for retirement according to your age group. Good luck!

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