Last updated: March 2026
Retirement Savings Benchmarks by Age
Knowing where you stand relative to benchmarks helps gauge your progress. Fidelity's widely cited guidelines suggest saving 1x your salary by 30, 3x by 40, 6x by 50, and 10x by 67. On a $75,000 salary, that means $75K by 30, $225K by 40, $450K by 50, and $750K by 67.
These benchmarks assume you start saving at 25, save 15% of income, invest more than half in stocks, and plan to maintain your pre-retirement lifestyle. If you want to retire early, travel extensively, or live in a high-cost area, you'll need more than the standard benchmarks.
Don't panic if you're behind. The gap between where you are and where benchmarks say you should be can be closed by increasing your savings rate, working a few extra years, or adjusting your retirement spending expectations. Small changes compound into big differences over a decade or more.
Understanding the 4% Rule and Safe Withdrawal Rates
The 4% rule is the most widely used framework for retirement planning. Originating from the 1998 Trinity Study, it found that a 4% initial withdrawal rate, adjusted for inflation each year, sustained a diversified portfolio (50-75% stocks) for at least 30 years in 95% of historical periods.
The inverse of 4% gives you the 25x rule: multiply your annual spending by 25 to find your target number. Spending $40,000/year? You need $1 million. Spending $60,000/year? You need $1.5 million. Simple, memorable, and a good starting point for planning.
Some planners now advocate for a more conservative 3.5% withdrawal rate given lower expected future returns. Others argue that flexibility — reducing withdrawals in down markets and spending more in good ones — makes even 5% sustainable. The right rate depends on your time horizon, flexibility, and other income sources.
Frequently Asked Questions
How much money do I need to retire?
A widely used rule of thumb is the 25x rule: multiply your desired annual retirement spending by 25. If you want $50,000/year, you need $1.25 million. If you want $80,000/year, you need $2 million. This assumes a 4% annual withdrawal rate, which research shows is sustainable for 30+ years in most market conditions.
How much should I have saved by age 30? 40? 50?
Common benchmarks: by 30, have 1x your annual salary saved. By 35, 2x. By 40, 3x. By 45, 4x. By 50, 6x. By 55, 7x. By 60, 8x. By 67, 10x. These are guidelines from Fidelity — your actual needs depend on desired retirement lifestyle, Social Security, pensions, and other income sources.
What is the 4% rule?
The 4% rule comes from the Trinity Study: if you withdraw 4% of your portfolio in year one and adjust for inflation each year after, your money should last at least 30 years in most historical market scenarios. Some financial planners now recommend 3.5% for more conservative planning, given current market valuations.
Can I retire with $500,000?
Using the 4% rule, $500,000 supports about $20,000/year in withdrawals. Combined with average Social Security ($1,900/month or $22,800/year), total income would be about $42,800/year. Whether this is enough depends entirely on your spending needs, location, and whether you have other income sources like a pension or rental income.
What if I started saving late?
It's never too late. If you're starting in your 40s or 50s, maximize catch-up contributions ($7,500 extra in 401(k) after 50), consider delaying retirement by 2-3 years (which dramatically increases savings), reduce expenses to boost savings rate, and delay Social Security to age 70 for a 32% larger benefit.
Should I pay off my mortgage before retiring?
There's no universal answer. Paying off your mortgage eliminates a significant monthly expense, reducing how much you need from savings. However, if your mortgage rate is low (3-4%) and your investments earn 7%+, you may build more wealth by investing instead. Consider your risk tolerance and peace of mind.