Savings by age: how much should you have by 30, 40, 50 & 60?

Most of us know we need to save for our future - but how much is enough?

There are several ways you can answer that question. You might want to know the amounts you need to be setting aside now to achieve financial security in the future. Or it might be more useful to know the size of the savings pot you need as a proportion of your earnings.

All of these can be useful in understanding how your saving is progressing. Here we lay out that information so you can see the savings landmarks you might need hit at some of your key life stages:

• 30
• 40
• 50
• 60

Remember - targets like these can sometimes appear hard to reach, particularly if you’ve delayed your savings to prioritise other things. That’s OK - it’s still useful to understand them and gauge your progress. Even if you feel you’re behind on your saving there is almost always something you can do to improve the picture.

Note: The calculations are based on assumptions, which may not reflect actual outcome, so you should not rely on them for your retirement planning.

How much should you have saved by 30?

Life up until age 30 is about establishing a financial footing for the future - even if the amounts you can save seem small. It is common to have to clear debt and save for a property in these years, and other long-term saving often takes a back seat.

But don’t worry. You’ve got time on your side with many years of contributing - and hopefully savings interest and investment returns - ahead of you.

Savings as a proportion of salary

It can be useful to look at savings as a proportion of the money you earn. Fidelity has previously produced broad guidelines to help people understand how much they need to have saved by different ages, shown as a multiple of their salary.

For people aged 30, the guidelines recommend an amount in savings worth one times your salary in order that you have enough to maintain your standard of living in retirement. So, someone earning $30,000 would need that amount in savings - which can mean money both inside and outside of your retirement savings plan.¹

How much should you have saved by 40?

By age 40 it is to be hoped you’ve have given yourself a financial footing in life. Perhaps you are repaying a mortgage or have a family to provide for. With luck, your income will be on the rise as your career progresses and you enter your peak earning years.

It is time to get your savings on target.

Savings as a proportion of salary

For people aged 40, Fidelity’s retirement savings guidelines recommend an amount in savings worth two times your salary¹ in order that you have enough to maintain your standard of living in retirement. So, someone earning $50,000 would need $100,000 in savings - which can mean money both inside and outside of your retirement savings plan.

How much should you have saved by 50?

By age 50 you should be able to tell what kind of shape your finances are for the future and your eventual retirement. Hopefully with plenty of time still left to earn money and pay into savings, and with some of life’s financial burdens perhaps easing, these are the years when saving can accelerate.

Savings as a proportion of salary

For people aged 50, Fidelity’s retirement savings guidelines recommend an amount in savings worth four times your salary¹ in order that you have enough to maintain your standard of living in retirement. So, someone earning $60,000 would need $240,000 in savings - which can mean money both inside and outside of your retirement savings plan.

How much should you have saved by 60?

The end is now in sight. By age 60 you should be planning your income options for retirement and have an understanding of the money you’ll have to live from. If you’re facing a short-fall there’s still time to plug the gap - it’s common for people to accelerate their retirement saving as they near the end of their careers.

Savings as a proportion of salary

For people aged 60, Fidelity’s retirement savings guidelines recommend an amount in savings worth six times your salary in order that you have enough to maintain your standard of living in retirement. So, someone earning $60,000 would need $360,000 in savings - which can mean money both inside and outside of your retirement savings plan.¹

Important information - This is for information purposes only and the views contained are not to be taken as advice or a recommendation for any product, service or course of action. The value of investments can go down as well as up, so you may get back less than you invest.