One of the most common personal finance questions is: “Am I saving enough for retirement?” The answer depends on your income, lifestyle, and goals — but benchmarks by age can help you gauge whether you are on track. Here is what the numbers look like in 2026.
The General Rule: Save 10–15% of Your Income
Most financial planners recommend saving 10–15% of your gross income for retirement throughout your working years. If you started late or plan to retire early, aim for 20% or more.
This figure includes employer matches. If your employer contributes 4%, you only need to contribute 6–11% yourself to hit the target range.
Retirement Savings Benchmarks by Age
Fidelity’s widely-cited benchmarks suggest having saved a multiple of your annual salary by key ages. These assume a target of replacing 45% of pre-retirement income from savings (the rest coming from Social Security and other sources).
| Age | Savings Target (Multiple of Annual Salary) |
|---|---|
| 30 | 1x your annual salary |
| 35 | 2x your annual salary |
| 40 | 3x your annual salary |
| 45 | 4x your annual salary |
| 50 | 6x your annual salary |
| 55 | 7x your annual salary |
| 60 | 8x your annual salary |
| 67 (retirement) | 10x your annual salary |
Example: If you earn $70,000 per year and are 40 years old, the benchmark says you should have about $210,000 saved for retirement.
Average Retirement Savings by Age in 2026
Most Americans fall significantly short of these benchmarks. Based on recent Federal Reserve data:
- Ages 25–34: median savings ~$14,000; average ~$42,000
- Ages 35–44: median savings ~$45,000; average ~$131,000
- Ages 45–54: median savings ~$84,000; average ~$257,000
- Ages 55–64: median savings ~$134,000; average ~$408,000
The median figures are more realistic for most households — the averages are pulled up by high earners. If you are ahead of the median, you are doing better than most Americans.
How Much Do You Actually Need to Retire?
A common calculation: multiply your expected annual retirement spending by 25. This is the “4% rule” — if you withdraw 4% of your portfolio in the first year of retirement and adjust for inflation each year, historically your money has lasted 30+ years.
Examples:
- Plan to spend $50,000/year in retirement: target $1.25 million
- Plan to spend $80,000/year: target $2 million
- Plan to spend $40,000/year: target $1 million
Social Security reduces this target. The average Social Security benefit in 2026 is approximately $1,900/month ($22,800/year). If you plan to collect Social Security, subtract that amount from your annual spending need before applying the 25x rule.
What to Do If You Are Behind
If your savings are below the benchmark for your age, do not panic — but do act. Strategies to catch up:
Maximize tax-advantaged accounts first. In 2026, you can contribute up to $23,500 to a 401(k) ($31,000 if 50+) and $7,000 to an IRA ($8,000 if 50+). These contribution limits increase most years.
Take advantage of catch-up contributions. If you are 50 or older, the IRS allows higher contribution limits specifically designed for people who want to accelerate retirement savings.
Eliminate high-interest debt first. Paying off credit card debt at 20% interest is equivalent to earning a guaranteed 20% return on investment — far better than any market investment.
Increase your savings rate by 1% per year. Small incremental increases are easier to sustain than large sudden cuts to spending. Adding 1% more each year for five years makes a significant difference over a 20–30 year timeline.
Delay retirement by a few years. Working until 65 instead of 62, for example, dramatically improves your financial position — fewer years in retirement to fund, more years of contributions, and a higher Social Security benefit.
What If You Are Ahead of the Benchmarks?
If you are well ahead, you have options:
- Consider early retirement or semi-retirement
- Shift to a more conservative portfolio to protect gains
- Redirect contributions toward taxable accounts, a college fund, or other goals
- Work with a financial planner to model exactly when you can retire comfortably
Bottom Line
The most important thing is not to hit the exact benchmark — it is to be saving consistently and increasing your rate over time. Whether you use the Fidelity multiples or the 25x spending rule, what matters most is that you have a target, a plan, and automated contributions working toward it every month. Start where you are, save what you can, and increase it every chance you get.