Retirement Savings Benchmarks & Your Future Goals
August 21, 2025
Planning for retirement is a lifelong journey. It requires setting clear financial goals and revisiting them over time, and making necessary adjustments. While every individual’s situation is unique, savings benchmarks can serve as useful checkpoints. These milestones, based on income and age, help you see if your savings plan matches your retirement goals.
Retirement Savings Milestones by Age
In Your 20s: Establishing Strong Habits
Your early career years are the foundation for long-term financial success. A widely suggested goal is to have the equivalent of one year’s salary saved by the time you turn 30. Regularly adding to a retirement account, like a 401(k) or IRA, can boost your savings. This is especially true if your employer matches your contributions.
At this stage, the main priorities are controlling expenses, avoiding high-interest debt, and making regular contributions. Even small amounts can grow substantially thanks to compounding.
In Your 30s: Gaining Momentum
By age 40, many experts recommend having two to three times your annual salary saved. This decade can feel financially demanding as mortgages, childcare, and education costs compete for attention. Despite these challenges, steadily increasing contributions can help you stay on track.
It’s also a smart time to review your investment strategy. Balancing growth-focused investments with diversification can provide both opportunity and protection. Tracking spending and setting clear financial priorities will help ensure your retirement savings continue to build momentum.
In Your 40s: Strengthening Your Position
As retirement gets closer, your 40s are often about fortifying savings. A common benchmark suggests having four to six times your annual salary saved by age 50.
If you are falling behind, try increasing your contributions. You can also cut unnecessary expenses. Pursuing extra income can help you catch up too.
This is also the right time to start planning in greater detail. Estimating potential retirement costs—such as healthcare, housing, and lifestyle choices—can give you a clearer picture of what you’ll need in the decades ahead.
In Your 50s: Accelerating Toward the Finish Line
Your 50s often bring both opportunity and urgency. Retirement accounts allow for catch-up contributions once you turn 50, which can significantly boost savings. By 60, many guidelines suggest aiming for six to eight times your annual salary.
In addition to saving more aggressively, this is a smart decade to review Social Security projections, pension benefits (if applicable), and other income sources. Many people also focus on paying down debt—particularly mortgages—to reduce future expenses.
In Your 60s: Preparing for Retirement
As you approach retirement, the focus shifts from accumulation to preservation. A frequently cited benchmark is having eight to ten times your annual salary saved by the time you retire, though personal circumstances can greatly influence what’s needed.
Now is the time to fine-tune your retirement income plan. This includes evaluating healthcare costs, adjusting investments to balance risk and stability, and creating a withdrawal strategy—such as deciding what percentage of savings to withdraw each year.
Factors That Influence Retirement Savings Success
Lifestyle and Spending Habits
Everyday expenses—housing, transportation, and discretionary spending—play a major role in how much you’re able to save. The earlier you make conscious spending decisions, the more flexibility you’ll have to invest in your future.
Healthcare Costs
Medical expenses tend to rise with age, making them a critical part of retirement planning. Anticipating costs for Medicare, supplemental insurance, and potential long-term care can help prevent financial strain later in life.
Market Conditions and Economic Shifts
Investment performance will vary with economic cycles. While downturns can temporarily impact savings, staying invested with a long-term mindset and adjusting as needed can help you weather volatility.
Flexibility in Savings Strategy
Life events—such as job changes, family responsibilities, or unexpected expenses—may temporarily slow savings. The key is to regularly review your progress and make adjustments, so you remain aligned with your overall goals.
Bottom Line
Hitting retirement savings benchmarks isn’t about perfection—it’s about progress. By building strong habits early, increasing contributions over time, and adjusting strategies as life changes, you can improve your chances of enjoying a secure and comfortable retirement.
Sources:
https://illuminatedadvisors.com/
“Retirement Savings Milestones: Are You on Track for Your Age?” Illuminated Advisors, August 2025, https://iaclientsource.com/retirement-savings-milestones-are-you-on-track-for-your-age/