Starting Points by Age
Where You Should Be (And What to Do If You're Not)
Compare your retirement savings to benchmarks by age. See where you should be, understand why the numbers vary, and create a catch-up plan if needed.
The Most Common Question
Am I On Track for Retirement?
It's the most common financial question — and the hardest to answer. The "right" number depends on your income, lifestyle, goals, and when you started.
But benchmarks help. Here's where you should be, what it means, and what to do if you're behind.
Industry Standards
The Major Benchmarks
Fidelity's Rule of Thumb
Save multiples of your salary by each age:
| Age | Target Savings (× Salary) | Example ($100K Income) |
|---|---|---|
| 30 | 1× | $100,000 |
| 35 | 2× | $200,000 |
| 40 | 3× | $300,000 |
| 45 | 4× | $400,000 |
| 50 | 6× | $600,000 |
| 55 | 7× | $700,000 |
| 60 | 8× | $800,000 |
| 67 | 10× | $1,000,000 |
Assumptions: 15% savings rate, retire at 67, replace 45% of income from savings.
The Reality
Most People Are Behind
Federal Reserve Data: Median Retirement Savings
| Age Group | Median Savings | "Should Have" (Fidelity) |
|---|---|---|
| 25-34 | $33,272 | ~$80,000 (1× $80K salary) |
| 35-44 | $86,582 | ~$200,000 (2× $100K) |
| 45-54 | $161,079 | ~$400,000 (4× $100K) |
| 55-64 | $232,379 | ~$700,000 (7× $100K) |
The gap: Most Americans have 30-40% of recommended savings.
Why the Gap Exists
Late Start
Many don't start saving seriously until 30+ after establishing career and paying off student loans.
Interruptions
Job changes, emergencies, life events, home purchases disrupt consistent saving.
Insufficient Rate
Average 401(k) contribution is 7%, recommended is 15%. The gap compounds over time.
Debt Burden
Student loans, consumer debt, mortgages consume cash flow that could be invested.
Income Volatility
Inconsistent earning (commission, freelance, business) makes planning difficult.
Lack of Knowledge
Many don't know these benchmarks exist or how to calculate their target.
Your 20s
The Foundation Years
The Opportunity
- Time is your greatest asset (40+ years)
- Compound growth has maximum runway
- Small amounts become large sums
- Can afford more risk
Strategy
- Max employer match (free money)
- Roth IRA while in low tax bracket
- Start IUL for tax diversification
- Live below means aggressively
If You're at $0 at Age 25
To have 1× $70,000 salary by 30:
Your 30s
The Acceleration Years
The Opportunity
- Peak earning growth years
- Can still catch up relatively easily
- Time for compound growth remains
- Career established, raises come faster
Strategy
- Maximize 401(k) contributions
- Add after-tax savings vehicles
- Consider IUL for tax-advantaged growth
- Balance debt payoff with saving
- Increase savings rate with every raise
If You're at 0.5× at Age 35
To reach 3× by 40:
Your 40s
The Critical Years
The Opportunity
- Often peak earning years
- Still 20+ years of growth potential
- Can leverage experience and income
- Catch-up contributions available at 50
The Challenge
- Time compression is real
- Life expenses often highest (kids, mortgage)
- Career plateaus possible
- Health costs increasing
Strategy for Your 40s
- Max out all tax-advantaged accounts
- Aggressive IUL funding for catch-up
- Consider real estate income
- Extend retirement target if needed
- Part-time work in retirement planning
- Reduce lifestyle expenses where possible
Your 50s
The Final Push
The Opportunity
- Catch-up contributions ($7,500 extra to 401K)
- Often highest earning years
- Clear line of sight to retirement
- Kids often out of house (expenses drop)
The Challenge
- Limited time for compound growth
- Market volatility more dangerous
- Health and career risks increase
- Parents may need care (expense)
Strategy for Your 50s
- Maximize catch-up contributions everywhere
- IUL policy loans for tax-free retirement income
- Delay Social Security (8% increase per year of delay)
- Consider working to 70 if needed
- Downsize home, reduce expenses
- Part-time retirement model planning
Catch-Up Strategies
What to Do If You're Behind
Extend Timeline
Working to 70 instead of 65 reduces your target by 30%. 5 more years of contributions + growth + fewer withdrawal years.
Reduce Spending
Lower retirement lifestyle = lower savings need. 70% of working income (vs 80%) reduces target by ~20%.
Add Income Sources
Social Security + part-time work + rental income + IUL tax-free income. Each $1K/month reduces savings need by ~$200K.
Optimize Taxes
$500K in IUL provides more after-tax income than $650K in 401(k). Tax-free income sources reduce needed savings.
Frequently Asked Questions
Get Your Personal Retirement Assessment
Knowing where you stand is the first step. Knowing what to do about it is where the real work begins. We'll calculate your exact position, identify your gap, and create a realistic plan to close it — using every tool available.