The Salary Multiplier Benchmarks
The most widely cited retirement savings benchmarks come from Fidelity Investments, whose research analyzed what Americans need to save (relative to income) to maintain 45% of pre-retirement income from their portfolio through their late 80s — with Social Security covering the remaining 30–35%.
The benchmarks assume you:
- Start saving at age 25 and contribute 15% of your income annually (including employer match)
- Maintain a diversified, age-appropriate portfolio (heavier in stocks when young, shifting to bonds as you age)
- Retire at age 67 (full Social Security retirement age for those born 1960 or later)
- Spend 55–80% of pre-retirement income in retirement
| Age | Savings Target | Example: $70k Salary | Example: $100k Salary |
|---|---|---|---|
| 25 | Starting to save | — | — |
| 30 | 1× salary | $70,000 | $100,000 |
| 35 | 2× salary | $140,000 | $200,000 |
| 40 | 3× salary | $210,000 | $300,000 |
| 45 | 4× salary | $280,000 | $400,000 |
| 50 | 6× salary | $420,000 | $600,000 |
| 55 | 7× salary | $490,000 | $700,000 |
| 60 | 8× salary | $560,000 | $800,000 |
| 67 (retirement) | 10× salary | $700,000 | $1,000,000 |
These benchmarks assume average spending, average Social Security, and retiring at 67. If you plan to retire early, have higher spending, or won't receive Social Security, your targets will be higher. If you have a pension or plan to retire later, your targets may be lower.
Age-by-Age Milestones
Here's what to focus on at each major life stage:
Age 25 — Start Now
Even $50/month matters enormously here thanks to compounding. Enroll in your 401(k) immediately (at minimum, capture the full employer match). Open a Roth IRA — income is likely lower now than it will be later, making Roth conversion tax-efficient. Time is your greatest asset.
Age 30 — 1× Salary
By 30, you should have saved an amount equal to one full year's salary across all retirement accounts. If behind, increase your savings rate by 1–2 percentage points now — one year of extra savings in your 30s is worth far more than one year in your 50s due to compounding time remaining.
Age 40 — 3× Salary
The 401(k) limit is now /year (2026). Maximize it if possible. If you have children approaching college age, don't sacrifice retirement savings for college costs — your kids can borrow for school; you can't borrow for retirement.
Age 50 — 6× Salary + Catch-Ups
You're now eligible for catch-up contributions: an extra /year to your 401(k) and /year to your IRA. Aggressively deploy these if behind. At 50, you still have 17 years of compounding before full retirement age.
Age 60–63 — 8× Salary + Super Catch-Up
SECURE 2.0 introduced a "super catch-up" for ages 60–63: an extra /year to your 401(k) (total ). This is a critical window to aggressively close any savings gap. Also: if your income is high, consider converting Traditional IRA/401(k) funds to Roth before RMDs begin at 73.
Age 67 — Retirement
Full Social Security retirement age (for those born 1960+). With 10× salary plus Social Security, you should be able to cover 80–90% of pre-retirement spending. Consider delaying SS to 70 for the 24% bonus if your health and finances allow — the higher guaranteed income reduces the portfolio withdrawal burden in bad markets.
The Cost of Starting Late
The most powerful illustration of compounding is how dramatically the outcome differs depending on when you start — even when total contributions are identical.
The early saver contributed $110,000 less and stopped 32 years earlier — yet ends up with more money at retirement. This is the "magic" of compound growth over long time horizons.
At a 7% annual return, money doubles roughly every 10 years (72 ÷ 7 ≈ 10.3 years). $50,000 saved at 25 becomes ~$400,000 by 67. $50,000 saved at 45 becomes only ~$100,000. Starting 20 years earlier quadruples the ending value of the same dollar.
Catch-Up Contributions (2026)
SECURE 2.0 significantly expanded catch-up contribution opportunities. Here's what's available by age:
| Account | Under 50 Limit | 50+ Catch-Up | Ages 60–63 Super Catch-Up |
|---|---|---|---|
| 401(k) / 403(b) | + | + | |
| Traditional / Roth IRA | $7,500 | + | No additional catch-up |
| SIMPLE IRA | + $3,850 | + $5,250 (ages 60–63) | |
| HSA | / | + (age 55+) | Same as 50+ |
Starting January 1, 2026, if your FICA wages from the employer sponsoring your 401(k) exceeded $150,000 in the prior year, your catch-up contributions must go to a Roth 401(k) — they cannot be made pre-tax. This applies to the 50+ and 60–63 catch-up amounts. Check whether your plan offers a Roth 401(k) option.
What to Do If You're Behind
Being behind the benchmarks is common. A 2024 Federal Reserve survey found the median American age 45–54 has only $115,000 in retirement savings. Here's a prioritized action plan:
Step 1: Stop Losing Ground
- Capture 100% of your employer match — it's an immediate 50–100% return on investment
- Eliminate high-interest debt (credit cards) — guaranteed 20%+ return
- Build a 3-month emergency fund so you never have to raid retirement accounts
Step 2: Maximize Tax-Advantaged Space
- Max out your 401(k): /year (2026)
- Add a Roth IRA: $7,500/year (income limits apply)
- If 50+, add catch-up: extra to 401(k) + to IRA
- If you have an HDHP, max out your HSA: (individual) or (family)
Step 3: Adjust the Retirement Plan
- Work 2–3 years longer — each extra working year has a triple effect: more savings, one fewer year of withdrawals, and a higher Social Security benefit
- Delay Social Security — waiting from 67 to 70 adds 24% to your lifetime monthly benefit permanently
- Reduce planned spending — a 10% spending reduction in retirement shrinks the required portfolio by 10%
- Consider part-time work in early retirement — even $1,000/month from part-time income dramatically extends portfolio life
Retiring at 69 instead of 67 is not just "2 more years of saving." It also means: 2 fewer years of portfolio withdrawals, a higher Social Security benefit if you delay (not claiming until 70), and 2 more years of compound growth on your existing balance. These effects compound: retiring 2 years later can add 20–30% to sustainable lifetime income.
Dollar Examples by Salary
The table below shows the Fidelity benchmarks in dollar amounts for five common salary levels:
| Annual Salary | By 30 (1×) | By 40 (3×) | By 50 (6×) | By 60 (8×) | By 67 (10×) |
|---|---|---|---|---|---|
| $50,000 | $50,000 | $150,000 | $300,000 | $400,000 | $500,000 |
| $75,000 | $75,000 | $225,000 | $450,000 | $600,000 | $750,000 |
| $100,000 | $100,000 | $300,000 | $600,000 | $800,000 | $1,000,000 |
| $150,000 | $150,000 | $450,000 | $900,000 | $1,200,000 | $1,500,000 |
| $200,000 | $200,000 | $600,000 | $1,200,000 | $1,600,000 | $2,000,000 |