Here’s how much money you should have saved at every phase of life

Life isn’t easy. We all know that, but we all believe that having more money would definitely help. Sure, it probably would, but we can’t all have that luxury, unfortunately. For those of us that have to live within more modest budgets, we have to plan better and create financial targets to aim for. This article will outline those targets, and hopefully, it will help get you on the right track to financial security.

If you’ve just hopped onto the first rung of the employment ladder, it can be hard to foresee a time when you have to plan for retirement, but it should be something that is always in the back of your mind. Many of us do not want to work our whole lives, so it is important that we get the balance right to allow us to enjoy our elder years in comfort. Many Americans adults actually have less than $1,000 in the bank, something they definitely can’t retire on tomorrow.

Sadly we haven’t invented the time machine, so if you’re not in your 20s and didn’t follow this pattern throughout your working life, then you’ll maybe have to make some adjustments. We reckon you’ve done better than you think you have though.

Here’s how much money you should have saved at every phase of life


The aim when in your twenties is to save 25% of your salary. That probably seems like a lot to most twentysomethings, but that is a stable saving that will stand you in good stead for the rest of your life. Getting into the habit of saving a quarter of your incomings year on year will make sure you’ve got a sweet little nest egg at the end of your working career. Keeping this savings pattern could also aid you in your future debt repayments.

30s and 40s

By 30, if you’ve been saving in your twenties as above, you will have saved the equivalent of your yearly salary. So if you’ve been earning $25,000, you would hope to have that much chilling in your savings account. Your saving will soon start to stack up, and by your mid-thirties, you should aim to have double your annual salary saved. By the time you reach your 40s, you should expect to have amassed your annual salary three times over.

50s to retirement

Once you get to 50 you should expect to see a whopping five times as much saved, and then your mid-fifties will see that figure jump to six times. Once you get to retirement age, around 67, you should have close to nine times your annual salary. That isn’t taking wage rises into consideration, the likelihood is that your savings figure will be far and above that number. Just make sure you keep putting 25% into the bank each time you get your paycheck.

It won’t be easy, and there may be times when it isn’t possible. If you do your best to stick to this pattern, then by the time you put your feet up and retire you’ll have a lot of financial security to fall back on. Sometimes, 25% might be too much, so lower the figure, but just make sure that some money is being saved. If you’re 50 and haven’t started saving yet, it’s not too late. Even if you save for 15 years you can still put twice your annual salary away before retiring.

Here’s how much money you should have saved at every phase of life