Retirement planning isn't one-size-fits-all. What makes sense in your 20s is different from what you should focus on in your 50s. This guide provides specific, actionable advice for each decade of your working life, including savings benchmarks, key strategies, and common mistakes to avoid.
Remember: these are guidelines, not rigid rules. Life circumstances vary, and starting "late" is always better than not starting at all. Let's dive into what matters most at each age.
Savings Benchmarks by Age
These popular benchmarks from Fidelity provide a quick way to gauge if you're on track. They're based on saving 15% of income starting at age 25 with a target retirement age of 67.
| Age | Savings Goal | Example ($80k salary) |
|---|---|---|
| 30 | 1x annual salary | $80,000 |
| 35 | 2x annual salary | $160,000 |
| 40 | 3x annual salary | $240,000 |
| 45 | 4x annual salary | $320,000 |
| 50 | 6x annual salary | $480,000 |
| 55 | 7x annual salary | $560,000 |
| 60 | 8x annual salary | $640,000 |
| 67 | 10x annual salary | $800,000 |
Don't panic if you're behind these benchmarks—many Americans are. The important thing is to take action now. Each section below includes catch-up strategies.
Your 20s: Build the Foundation
The most powerful decade for building wealth—time is on your side.
Target Benchmarks
- By age 25: Have a 401(k) or IRA open and contributing
- By age 30: 1x your annual salary saved for retirement
- Savings rate: Aim for 10-15% of income (including employer match)
Key Actions in Your 20s
Start contributing to your 401(k) immediately
At minimum, contribute enough to get your full employer match. This is free money with an instant 50-100% return.
Open a Roth IRA
Your income is likely lower now than it will be later. Roth contributions lock in today's lower tax rate for tax-free withdrawals later.
Invest aggressively in stocks
With 40+ years until retirement, you can weather market volatility. A 90-100% stock allocation is appropriate for most 20-somethings.
Build financial habits
Automate your savings, pay off high-interest debt, build an emergency fund. These habits will serve you for life.
Common Mistakes to Avoid
- Waiting to start saving ("I'll do it when I make more")
- Not getting the full employer match
- Cashing out 401(k) when changing jobs
- Keeping retirement savings in a money market or stable value fund
Your 30s: Accelerate Growth
Balance competing priorities while maximizing your earning years.
Target Benchmarks
- By age 35: 2x your annual salary saved
- By age 40: 3x your annual salary saved
- Savings rate: Work toward 15-20% of income
Key Actions in Your 30s
Increase contributions with every raise
Each time you get a raise, increase your 401(k) contribution by at least 1%. You won't miss money you never saw in your paycheck.
Max out tax-advantaged accounts if possible
Work toward maxing your 401(k) ($23,500 in 2026) and IRA ($7,000). If you have an HSA, that too ($8,550 family).
Review and consolidate old 401(k)s
If you've changed jobs, roll old 401(k)s into an IRA for better investment options and easier management.
Balance retirement with other goals
You might be buying a home, having kids, paying off student loans. Prioritize high-interest debt and employer match, then balance the rest.
Common Mistakes to Avoid
- Letting lifestyle inflation eat up all your raises
- Prioritizing kids' college over your retirement (they can borrow for college; you can't borrow for retirement)
- Becoming too conservative with investments (you still have 30+ years)
- Ignoring high-fee funds in your 401(k)
Your 40s: Peak Earning Years
Leverage higher income to supercharge retirement savings.
Target Benchmarks
- By age 45: 4x your annual salary saved
- By age 50: 6x your annual salary saved
- Savings rate: Maximize at 20-25% if possible
Key Actions in Your 40s
Do a serious retirement check-up
Use our calculator to project where you'll be at 65. If you're behind, this is the decade to course-correct while you still have time.
Maximize catch-up opportunities at 50
Once you turn 50, you can contribute an extra $7,500 to your 401(k) and $1,000 to your IRA. Start planning to take advantage.
Consider Roth conversions
If you're in a temporarily lower bracket, converting Traditional IRA to Roth can pay off. Diversifying between account types gives flexibility later.
Begin thinking about retirement lifestyle
Where will you live? What will you do? Having a clearer picture helps you plan more accurately and stay motivated.
Common Mistakes to Avoid
- Panicking and becoming too conservative too early
- Co-signing loans or over-supporting adult children
- Not having disability or life insurance to protect your savings years
- Ignoring healthcare planning (especially if retiring before 65)
Your 50s: The Final Push
Use catch-up contributions and fine-tune your plan.
Target Benchmarks
- By age 55: 7x your annual salary saved
- By age 60: 8x your annual salary saved
- Savings rate: Maximize contributions including catch-ups ($31,000 in 401k, $8,000 in IRA)
Key Actions in Your 50s
Max out catch-up contributions
You can now contribute $31,000 to a 401(k) and $8,000 to an IRA annually. That's $39,000/year in tax-advantaged savings!
Plan your Social Security strategy
Check your estimated benefits at ssa.gov. Decide whether you'll claim early, at FRA, or delay to 70. See our Social Security guide.
Develop a healthcare bridge plan
If retiring before 65, you need coverage until Medicare. Research ACA marketplace plans, COBRA, or spousal coverage options.
Gradually reduce investment risk
Shift toward a more conservative allocation (perhaps 60-70% stocks). But don't go too conservative—you may live 30+ years in retirement.
Common Mistakes to Avoid
- Not maximizing catch-up contributions
- Taking Social Security too early without analysis
- Underestimating healthcare costs
- Forgetting to plan for long-term care
Your 60s: Transition to Retirement
Execute your plan and make the big decisions.
Target Benchmarks
- By age 65: 10x your annual salary saved
- By age 67: 10-12x your annual salary saved
- Focus: Preservation and income planning
Key Actions in Your 60s
Finalize your retirement date
Run the numbers with realistic assumptions. Can you retire when you planned? If not, consider working a bit longer—even 1-2 years can significantly improve your situation.
Create your withdrawal strategy
Decide which accounts to tap first (taxable, tax-deferred, tax-free). See our withdrawal strategies guide.
Enroll in Medicare at 65
Don't miss your enrollment window! Sign up during the 7-month period around your 65th birthday. Research supplement plans (Medigap) and Part D.
Execute your Social Security claiming strategy
Stick to your plan unless circumstances have changed. For married couples, coordinate claiming to maximize household lifetime benefits.
Common Mistakes to Avoid
- Retiring without a clear withdrawal plan
- Missing Medicare enrollment deadlines
- Underestimating how long retirement will last (plan for 30+ years)
- Changing investment strategy drastically right before/after retirement
Key Takeaways for All Ages
- ✓The best time to start is now—no matter your age, taking action today beats waiting for "the right time."
- ✓Automate everything—automatic contributions ensure you save consistently without willpower.
- ✓Get the employer match—this is the highest-return, no-risk investment available at any age.
- ✓Keep fees low—index funds typically outperform high-fee alternatives over time.
- ✓Increase savings with income—raise your contribution rate every time you get a raise.