Saving for retirement can feel like trying to hit a moving target. You might wonder whether you’re ahead, behind, or right on track, and with so much conflicting advice out there, it’s easy to second-guess yourself. While everyone’s situation is different, there are some helpful benchmarks that can show you where you stand and what adjustments to make.
At Keen Capital, we help clients think about these numbers not as rigid rules, but as guideposts. Your retirement savings aren’t just about reaching a specific dollar amount. They’re about creating the freedom to live the life you want later on, without worrying about running out of money. Let’s look at how much should you have saved for retirement at each stage of life and what you can do to stay on course.
It is important to consider that the amount of income replacement you need from your portfolio depends heavily on how much you earn and spend during working years. Those with higher incomes will need higher relative savings. Our experience tells us that most people don’t spend less in retirement than they do while working, so preparation is critical.
How Much to Have Saved by Age 40
By the time you reach 40, you’re likely well into your career and starting to hit your peak earning years. A good rule of thumb is to have about two to three times your annual income saved for retirement by now. So, if you earn $200,000, you’d ideally have around $400,000 to $600,000 set aside in retirement and investment accounts. This is assuming you are saving about 10% of your income each year.
At this stage, the most important thing isn’t perfection—it’s momentum. You still have decades of compounding ahead of you, so consistent investing will work in your favor. Aim to save around 15% of your gross income, including any employer match, and focus on growth-oriented investments that align with your risk tolerance.
If you’re behind, don’t panic. Many people spend their 20s paying off student loans or building families. The key is to use your 40s to catch up, automate your savings, and make sure your money is working efficiently in tax-advantaged accounts.
How Much to Have Saved by Age 50
Turning 50 is a natural checkpoint in your financial life. By now, your savings target should be around four to five times your annual income. For someone earning $300,000 a year, that means having at least $1.2 million saved.
This is also when retirement starts to feel more tangible. You may be thinking about where you’d like to live, what kind of lifestyle you want, or how to wind down from a busy career. It’s a great time to revisit your plan and make sure your investments still reflect your long-term goals.
If you can, take advantage of “catch-up contributions” in your retirement accounts, which allow you to put away more each year once you hit 50. And if your kids are nearing independence, redirect some of the cash flow that previously went to education or family expenses into your own future.
The focus in your 50s should be balance: protecting the wealth you’ve built while continuing to grow it steadily. Investment mistakes start to matter more, so it’s time to buckle down and invest wisely.
How Much to Have Saved by Age 60
By the time you reach your 60s, retirement is no longer a distant goal; it’s right around the corner. At this point, aim to have about six to eight times your annual income saved.
What matters most now is how you’ll turn your savings into income. This is the time to start running scenarios: What will your monthly expenses look like?
How will you cover healthcare?
When will you start drawing from retirement accounts or Social Security?
It’s also a good idea to think through your withdrawal strategy. Many people use the “4% rule” as a general guide, meaning you withdraw 4% of your portfolio in the first year of retirement, then adjust that amount for inflation each year. But for high-net-worth individuals, tax efficiency is just as important as withdrawal rate. Consider strategies like Roth conversions or charitable giving to reduce your future tax burden.
Most importantly, use this decade to fine-tune your plan. You still have time to make adjustments, but your focus should shift from accumulation to preservation.
Also read: Safe Withdrawal Rates in 2026: Rules of Thumb vs Reality
How Much to Have Saved by Age 70
If you’re still working into your 70s, or even if you’ve already retired, your goal should be to have about ten times your annual income saved by now. For high earners, that number may need to be even higher, especially if you plan to travel extensively, maintain multiple homes, or leave a substantial legacy for your family.
At this stage, the conversation isn’t just about saving. It’s about distribution and legacy. You’ll need to plan when and how to start drawing from your various accounts, including required minimum distributions (RMDs) from tax-deferred accounts. You should also review your estate plan, ensuring that trusts, beneficiaries, and charitable intentions are structured the way you want.
The key is to have flexibility. Maybe you’re still earning income from consulting or a business, or maybe you’ve chosen to slow down and enjoy the freedom you’ve worked so hard to build. Either way, your savings should give you the confidence to live comfortably while protecting your long-term goals.
Customizing These Benchmarks to You
These benchmarks offer helpful targets, but they don’t tell the whole story. If you have a high income, own a business, or plan to pass on wealth to future generations, your retirement savings might look very different. It’s less about hitting a specific number and more about building a plan that supports the life you envision.
Some people may need less than these multiples because they have rental income, pensions, or other sources of cash flow. Others may need more if they expect higher expenses or want to provide for family members. The most effective approach is to review your plan every few years and make adjustments as your lifestyle and goals evolve.
If You’re Behind, Don’t Be Discouraged
It’s common to reach one of these milestones and feel like you haven’t saved enough. The good news is that it’s never too late to improve your plan. You can increase your savings rate, work a few extra years, or reduce spending expectations in retirement, all of which can make a meaningful difference.
Even small changes can have a big impact over time. The most important step is to take action now rather than waiting for the “perfect” moment.
Plan For Retirement With Keen Capital
Knowing how much you should have saved by each decade gives you a clear sense of direction, but it’s only part of the picture. Your retirement plan should reflect your goals, values, and priorities.
At Keen Capital, we help clients build wealth with intention. Whether you’re just starting to think seriously about retirement or refining the final details of your legacy, our fiduciary advisors can help you align your investments, taxes, and estate plan so that your money truly supports the life you want.
If you’d like a clearer picture of where you stand and how to get where you want to be, schedule a call with us. We’ll help you make confident, informed decisions about your future.
