How much should you have saved for retirement by 30, 40, 50, or 60? Fidelity's 2024 benchmarks give a clear answer, and the math behind compound interest explains why starting early matters more than almost anything else you can do.
The Benchmarks
Fidelity recommends the following savings targets, expressed as a multiple of your annual salary:
- By age 30: 1x your annual salary
- By age 40: 3x your annual salary
- By age 50: 6x your annual salary
- By age 60: 8x your annual salary
Why Time Matters More Than the Amount
$10,000 invested at a hypothetical 8% average annual return:
- After 10 years: $21,589
- After 20 years: $46,610
- After 30 years: $100,627
- After 40 years: $217,245
The dollar amount invested never changes. What changes is time. That's the core argument for starting retirement contributions as early as possible, even in small amounts.
Using the Benchmarks
These figures are general guidelines, not guarantees, and don't account for individual circumstances like debt, healthcare costs, Social Security timing, or regional cost of living. If you're significantly behind a benchmark for your age, it's a signal to review contribution rates, employer match usage, and account types (401(k), IRA, Roth IRA), not a reason for alarm.
Full retirement planning guide, with 401(k)/IRA/Social Security/Medicare strategy: https://vextorcapital.com/learn/retirement-planning
Not financial advice. Past performance does not guarantee future results.
Top comments (0)