How Much Should I Save for Retirement by Age? (2026)

Fidelity's Retirement Savings Benchmarks by Age

The most widely cited retirement savings guidelines come from Fidelity Investments, based on planning for retirement at 67 with a goal of replacing roughly 45% of pre-retirement income from savings (the rest comes from Social Security):

• By age 30: 1x your annual salary saved
• By age 35: 2x your annual salary saved
• By age 40: 3x your annual salary saved
• By age 45: 4x your annual salary saved
• By age 50: 6x your annual salary saved
• By age 55: 7x your annual salary saved
• By age 60: 8x your annual salary saved
• By age 67: 10x your annual salary saved

These are general guidelines, not universal rules. Your number depends on your expected lifestyle, Social Security benefits, whether you have a pension, healthcare costs, and desired retirement age.

Why These Benchmarks Vary

Fidelity's benchmarks assume a specific set of conditions. Your situation may require more or less:

• Early retirees (before 62): Need significantly more because Social Security is unavailable and they need to fund a longer retirement period.
• High earners: Need to save a larger multiple because Social Security replaces a smaller percentage of high incomes.
• Those with pensions: May need less from personal savings because a pension provides guaranteed income.
• High cost-of-living areas: Need more to sustain comparable spending in retirement.

Catch-Up Contributions After Age 50

The IRS allows catch-up contributions for retirement savers age 50 and older. In 2026, the standard 401(k) contribution limit is $23,500. Those 50 and older can contribute an additional $7,500, for a total of $31,000. For IRAs, the standard limit is $7,000 with a $1,000 catch-up, totaling $8,000 for those 50+.

Starting in 2025 under SECURE 2.0, workers aged 60–63 can make an even larger 401(k) catch-up contribution of $11,250, for a total of $34,750.

Social Security Timing Strategy

When you claim Social Security significantly affects your benefit amount. Benefits increase by approximately 6–8% for every year you delay claiming beyond your full retirement age (FRA), up to age 70. Claiming at 62 permanently reduces your benefit by up to 30%. For a couple, the optimal strategy is often for the higher earner to delay to 70 while the lower earner claims earlier.

Withdrawal Sequence in Retirement

The order in which you withdraw from accounts in retirement affects your tax bill significantly. A common strategy:

• First: Taxable brokerage accounts (take advantage of long-term capital gains rates)
• Second: Traditional 401(k) / IRA (taxable as ordinary income)
• Last: Roth IRA (tax-free, let it grow as long as possible)

Required Minimum Distributions (RMDs) from traditional accounts begin at age 73 (under current law), so planning your withdrawal sequence early helps minimize lifetime taxes.