Target: 0.5x–1x annual salary by age 30 Priorities: - Start contributing to 401(k) at least enough to get employer match - Build a $10,000–$15,000 emergency fund - Open a Roth IRA and maximize contributions if possible - Pay off high-interest credit card debt (above 8% APR) The power of starting in your 20s cannot be overstated. A 25-year-old who invests $500/month at 7% will have $1.2M at 65. Starting at 35 requires $1,100/month to reach the same goal.
Target: 2x–3x annual salary by age 40 Priorities: - Max out 401(k) ($23,500 in 2026) if income allows - Max out Roth IRA ($7,000) - Build 6-month emergency fund if family-dependent - Consider 529 plan if you have children - Evaluate life and disability insurance
Lifestyle inflation is the biggest threat in your 30s. As income grows, resist upgrading housing, cars, and vacations proportionally. Maintain your savings rate percentage.
Target: 4x–6x annual salary by age 50 Priorities: - Maximize all retirement accounts - Pay off mortgage aggressively if rate > 5% - Review asset allocation (reduce risk as retirement approaches) - Consider catch-up contributions (50+ allows extra $7,500 in 401(k)) - Calculate Social Security estimates at SSA.gov
If behind target, this is your last chance for major course correction. Consider side income, downsizing, or delaying retirement by 2–3 years to close the gap.
Target: 8x–10x annual salary by retirement Priorities: - Shift asset allocation toward stability (60/40 or 50/50 stocks/bonds) - Maximize catch-up contributions ($31,000 total 401(k) in 2026 for 50+) - Pay off all debt before retirement - Create a withdrawal strategy (which accounts to draw from first) - Consider long-term care insurance
Sequence-of-returns risk is critical here. A market downturn in your first 5 years of retirement can permanently reduce portfolio sustainability. Maintain 2–3 years of expenses in cash or short-term bonds.
Enter your current age, income, and existing savings to see whether you are on track. The Savings Calculator shows how much you need to save monthly to hit age-based benchmarks at different return rates.