How Much To Save for Retirement By Age: A Complete Guide

Depending on your age, retirement may feel like a distant goal, especially if you're focused on today's bills. However, 70% of retirees wish they had started saving earlier, and half worry they'll run out of money, according to a survey conducted by the Employee Benefit Research Institute.

How much you'll need to save for retirement depends on a variety of factors because there's no one-size-fits-all solution. Here are some guidelines for how much to set aside.

How much should you save for retirement?

Many financial professionals recommend saving 10 to 12 times your annual income by the time you retire, typically around age 67. This strategy helps ensure your savings can last throughout retirement.

Another general guideline is the 80% rule, which is the idea that you'll need about 80% of your pre-retirement income to maintain your lifestyle. It's based on the assumption that you'll have less debt and fewer expenses by the time you retire.

Retirement savings goals by age

To save 10 times your income or greater by retirement, financial professionals offer benchmarks along the way for savings goals. As a very general guideline, Patti Hughes, certified financial planner (CFP) and owner of Lake Life Wealth Advisory Group, suggests accumulating the equivalent of your annual income in these increments:

However, everyone's situation is individual. For example, in your 30s and 40s, expenses like childcare or saving for a home might take priority over maxing out your retirement accounts.

“Saving for retirement may not be a linear process for you,” says Autumn Knutson, owner and lead financial planner at Styled Wealth. “For my younger clients, maxing out their 401(k) may not be the right thing unless there's plenty of money to go around.”

As a general guideline, financial experts recommend allocating 15% or 20% of your pre-tax income toward retirement savings goals and paying down debt. But how much goes toward debt and savings should be tailored to your situation, says Steve Charlton, certified financial fiduciary and owner of Wisdom Financial. If you're carrying substantial credit card debt at an interest rate of 20% or more, paying it off should be prioritized.

However, “if you can eliminate your debt while at the same time creating wealth, you end up being better off,” he says.

How to calculate your retirement savings needs

Most people rely on varied income streams in retirement. Figuring those out early in life isn't easy. Here's what to think about:

Consider your future Social Security benefits

On average, Social Security benefits replace about 40% of your pre-retirement income. If you haven't already, create an account with the Social Security Administration and look up your future benefits to factor them into your retirement resources. The retirement age to receive full benefits is 67.

Estimate your retirement needs

Let's say your current income is $100,000, and you estimate you can live off of $80,000 in retirement per the 80% rule. If you expect to receive $20,000 annually from Social Security, then you'd need to withdraw the remaining $60,000 from your savings.

The next step is figuring out how much to save in order to safely withdraw that amount over 20 to 30 years. One long-standing guideline is the 4% withdrawal rate but it's very rough. It suggests that if you retire with $1 million, for example, you'd withdraw $40,000 from your retirement savings the first year, and then adjust upward each year after inflation.

Use online tools or a financial planner

You can use an online retirement planning calculator to estimate if you're on track. Try something like the AARP retirement calculator or the Fidelity online calculator.

You could also work with a financial advisor to outline a plan. Knutson suggests something like Hello Nectarine for investment advice offered at an hourly rate.

Strategies to save for retirement

Only about 15% of private-sector workers have access to a retirement plan these days, according to the U.S. Bureau of Labor Statistics — down from 46% in 1980. That shift signals it's now up to individuals to take charge of their retirement savings.

The goal is to invest in a savings vehicle that grows over time. Here are a few tools to get you started:

Employer-sponsored retirement plans, including (401(k) and 403(b)

If your employer offers a matching percentage, 401(k) and 403(b) plans are a no-brainer. These are tax-advantaged retirement savings plans.

Typically, 401(k)s are offered by private companies, while 403(b)s are usually available to nonprofit and public sector employees.

“The number one rule is free money is best, so if you're getting any sort of employer match, take advantage of that,” Charlton says.

The amount you contribute depends on your financial situation, like your debt and other savings goals, such as saving for a down payment on a house, Knutson says.

Individual Retirement Account (IRA)

IRAs are tax-advantaged retirement accounts available even if you already pay into a 401(k). The two primary types are the traditional IRA and Roth IRA, which allow contributions of as much as $7,000 in 2025 or $8,000 for ages 50 and over:

• Traditional IRA: Contributions are typically made with pre-tax income, which may reduce your taxable income for the year. Your money grows tax-deferred, and you pay taxes on withdrawals in retirement. There are no income limits to contribute.
• Roth IRA: Contributions are made with after-tax income, so you don't get a tax break up front. However, your money grows tax-free, and withdrawals in retirement aren't taxed. To contribute the full amount, your income must be below $150,000 for single filers if you're single or $236,000 if you're married and file jointly.

Brokerage account

Brokerage accounts are investment accounts offered by licensed brokerage firms, like Fidelity, Charles Schwab, or Vanguard. They allow you to invest in bonds, mutual funds, exchange-traded funds (ETFs), or stocks.

Unlike retirement accounts, brokerage accounts have no tax advantages, but you have more flexibility. You can invest in a wide range of assets, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs), and you can withdraw money at any time.

“I generally recommend low-cost index funds in each asset class and changing the percentage allocation as people age to adjust the risk level,” Hughes says. An index fund is a type of mutual fund or ETF.

What to do if you're behind on retirement savings

Many people need to pick up their savings pace as they near retirement. Experts offer the following strategies:

• Make use of catch-up contributions: IRAs and 401(k) accounts allow catch-up contributions for people over age 50. In 2025, you can add an extra $1,000 to a Roth or traditional IRA (for a total of $8,000 annually), and an extra $7,500 to a 401(k), which can be maxed out at $31,000 annually.
• Reduce your debt: Getting rid of your high-interest debt is a good first step to finding money for retirement, Knutson says. Once you've paid it off, you can redirect those payments into your savings.
• Create a budget: Understand where your money is going. “Lay out what you have coming in every month and what you have going out. Then figure out what to reduce or eliminate,” says Charlton.
• Beef up your financial skills: If you struggle to understand money as a tool or how to budget and save, experts recommend looking for financial literacy resources to beef up your skills.
• Plan to work longer: If you're close to retirement age and you're behind on saving, Hughes recommends reducing spending to save more, working longer, or taking a part-time job in retirement.

Even if you haven't been saving consistently or at all, it's never too late. The key is to start.