Retirement Savings by Age: Where You Should Be Right Now

Is My Retirement Savings on Track? Probably Not.

Let's be honest, looking at your retirement account can be terrifying. You see these articles with crazy headlines about needing millions of dollars, and you just want to close the browser tab and pretend you never saw it. That feeling in your stomach? That's normal. Most people feel like they're behind on saving for retirement, and frankly, most people are.

But that doesn't mean you're doomed. It just means you need a simple, realistic plan. So let's skip the scary numbers for a second and start with a real goal.

The 15% Rule: Your New Best Friend

Here’s the only number you need to remember right now: 15%. If you can manage to save 15% of your pre-tax income for retirement, you are going to be in great shape. That’s it. That’s the secret. It’s not about having a specific dollar amount by a certain age, because everyone’s income and life situation is different. It’s about building a consistent habit.

Why 15%? Because it’s enough to build a serious nest egg over your career, but not so much that it feels impossible. Thanks to the magic of compound interest, that 15% will start to grow and build on itself, doing a lot of the heavy lifting for you. Don't believe me? Play around with our compound interest calculator and see for yourself how even small amounts can grow into a fortune over time.

What Saving 15% Looks Like in Your 20s and 30s

Your 20s and 30s are your golden ticket for retirement savings. You have time on your side, which is the most powerful ingredient in the compounding recipe. If you start now, you can save less overall and still end up with more than someone who starts later.

Your #1 Priority: The 401(k) Match

If your job offers a 401(k) with a company match, you need to contribute enough to get the full match. This is free money. I repeat, FREE MONEY. A common match is 100% of your contributions up to 3-5% of your salary. If you make $60,000 a year and your company matches up to 5%, that’s an extra $3,000 a year they are just giving you. Not taking the match is like turning down a raise.

Your Next Step: A Roth IRA

After you get your full 401(k) match, a Roth IRA is the next best place for your money. You contribute money you’ve already paid taxes on, but it grows completely tax-free. That means when you pull it out in retirement, you won’t owe the IRS a single penny. It’s a beautiful thing.

What Saving 15% Looks Like in Your 40s and 50s

If you’re in your 40s and 50s, you’re likely in your peak earning years. This is the time to put the pedal to the metal. If you haven’t been saving 15% consistently, now is the time to get as close as you can. The good news is, you have some extra tools to help you.

Catch-Up Contributions

Once you turn 50, the IRS lets you contribute extra money to your retirement accounts. For 2025, you can add an extra $7,500 to your 401(k) and an extra $1,000 to your IRA. This is a fantastic way to give your savings a serious boost in the final stretch before retirement.

The Power of an HSA

If you have a high-deductible health plan, you might be eligible for a Health Savings Account (HSA). An HSA is like a secret retirement account with a triple tax advantage: your contributions are tax-deductible, the money grows tax-free, and you can withdraw it tax-free for medical expenses. After age 65, you can pull money out for any reason, and it’s just treated like a traditional IRA. It’s one of the most powerful and underutilized retirement tools out there.

What If I'm Way Behind? (A Lot of Us Are)

Okay, so maybe you’re reading this and thinking, “15%? I can’t even save 5%!” First, take a breath. You are not alone. The absolute worst thing you can do is get discouraged and do nothing. The best time to start was yesterday. The second-best time is right now.

Start with a number that doesn’t make you want to cry. Can you save 1% of your income? Seriously, just 1%. On a $60,000 salary, that’s just $50 a month. Do that for a few months. Then, try to bump it up to 2%. Every time you get a raise, put half of that raise toward your retirement savings. The small, incremental changes are what build momentum and create lasting habits.

If you have high-interest debt like credit cards, it might make sense to focus on paying that off first. Use a debt payoff calculator to make a plan. Once that debt is gone, you can redirect that money toward your retirement goals.

Your Retirement, Your Rules

These age-based rules of thumb can be helpful, but they are not the boss of you. Your retirement is personal. Maybe you want to retire early and travel the world. Maybe you love your job and want to work part-time into your 70s. The numbers are just a starting point. The goal is to create a life you love.

Use a retirement calculator to play with different scenarios. See what happens if you save a little more each month, or if you retire a few years later. The more you understand the levers you can pull, the more in control you will feel.

And if you want more free resources to help you on your journey, check out our free guides. You’ve got this.