How Much Should You Have Saved Up At Your Age?

How much should you have in savings at every age? Read on to find out if you’re on track or if you have some catching up to do.

For 24-year-old Patricia, saving money is more of an afterthought than anything else. “I don’t really think about it,” she says. “If I happen to have some money left at the end of the month, that’s what I put aside. When I start earning more, maybe that’s when I’ll get serious about my savings.”

Plenty of young (and even older) adults make the mistake of not prioritizing their savings. Only later on, when they need the money (maybe for a big purchase or even retirement), do they realize how important it is to have savings.

The earlier you start saving, the better. Not only will you have to set aside less every month to reach your long-term goals, you’ll also be taking advantage of compound interest.

But how much should you be setting aside every month? How big should your saving goals be? Generally, it all depends on what age you want to retire, and what kind of lifestyle you hope to maintain in your retirement.

But to simplify things, here’s a basic guideline to help you figure out what you should be setting aside.

Retirement savings by age 25

By the age of 25, you should have a quarter of your annual gross salary saved up. “That 25% is a combination of [retirement fund contributions] and any cash savings that you have,” money expert Kimmie Greene tells CNBC. “It can also include debt repayment. Just make sure your lifestyle expenses don’t exceed 75% of your gross income.”

Retirement savings by age 30

By the age of 30, experts agree that you should have the equivalent of your annual salary set aside. This includes contributions to your retirement account (so this doesn’t include your earnings from interest), cash savings, and money invested in various funds.

Retirement savings by age 35

You’ll be feeling more pressure to save money for retirement in your 30s, which is why you should already have two times your annual salary set aside by 35.

Retirement savings by age 40

At the age of 40, you should try to save three times your current salary. If you’ve been consistent in your savings and have reached all

Retirement savings by age 45

You should be saving about four times your annual salary by the time you turn 45. At this point in life, you probably won’t have any more major salary increases down the line, so you should be making investments to give you more of a safety net.

Retirement savings by age 50, 55, 60, 65

Experts at Fidelity say that you should have about 10 times your salary in savings by age 67. This means that at age 50, you should have 5 times your annual salary saved. At 55, you should have 6 times your salary saved. At 60, 7 times your salary. At 65, 8 times your salary.

These figures might sound pretty intimidating at first, but keep in mind that if you start early, saving this much is totally doable.

What should you do if you’re in your 30s/40s and you haven’t started saving yet?

If you haven’t gotten started on your savings yet, now is the best time to. Of course, if you start later in life, your savings rate should be higher. To learn more about what your savings rate should be depending on what age you start, read this article: How To Save For Retirement: How Much Should I Be Saving If I Start Late?