How Much Should I Save by Age 40?

The benchmark: 3× your annual salary by 40

A widely cited rule from Fidelity is to have 3× your annual salary saved for retirement by age 40. So someone earning $50,000 should have about $240,000 saved by 40; someone earning $100,000 should have about $500,000 saved.

These numbers include 401(k), IRA, and other retirement accounts — not just cash savings. The benchmark works backwards from a comfortable retirement at 65, assuming consistent contributions throughout your career.

What's actually realistic at 40

The median 40-year-old in the US has far less saved than this benchmark — often closer to one-quarter to one-half. Don't panic if you're behind. The benchmark is the goal, not a judgment of where you are today.

• Median net worth at 30: ~$30,000
• Median retirement balance at 30: ~$15,000
• Median net worth at 40: ~$135,000
• Median retirement balance at 40: ~$50,000

How to catch up if you're behind

1. Build a starter emergency fund ($1,000–3 months expenses) first
2. Pay off any debt charging more than 7% interest
3. Capture every dollar of employer 401(k) match — it's free money
4. Max a Roth IRA each year ($7,000 in 2026)
5. Boost 401(k) contributions by 1% each year until you hit 15%
6. Avoid lifestyle creep — direct raises into savings

What $80K actually grows to

If you have $80K saved at 40 and add $1,000/month at a 7% return, you'll have about $1.5 million by 65 — a strong retirement nest egg.

How much to save each month

If you're behind at 40, push toward 20–25% of income to make up ground. On an $80K salary, that's $1,300–$1,650/month total (including employer match).

Common mistakes to avoid

• Comparing yourself to the highest savers instead of doing what you can
• Skipping the employer match to pay down low-rate debt
• Cashing out 401(k)s when changing jobs
• Investing too conservatively (cash) when you have 20+ years to retirement
• Waiting for the 'perfect' time to start — there isn't one

Use the calculator

Frequently Asked Questions