How Much Should You Have Saved by Age 40?
Target: 3x your annual salary ($195,000 on $65,000 income)
Quick Answer
By age 40, financial experts recommend having 3x your annual salary saved for retirement. On a median salary of $65,000, that is $195,000. The actual US median at this age is $93,000 — meaning most Americans are about 52% behind the target.
Savings Benchmark Comparison
Catch-Up Strategy for Age 40
Target 3x salary. If behind, consider downsizing expenses and contributing the maximum to your 401(k) ($23,000 in 2026). Look at catch-up contributions and IRA options.
Retirement Savings Milestones by Age
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Frequently Asked Questions
How much should I have saved for retirement by age 40?
By age 40, financial experts recommend having 3x your annual salary saved. For someone earning the median income of $65,000, that is approximately $195,000.
What is the average retirement savings at age 40?
The median retirement savings for Americans around age 40 is approximately $93,000. However, this is significantly below the recommended target of $195,000 (3x salary).
How can I catch up on retirement savings at 40?
Target 3x salary. If behind, consider downsizing expenses and contributing the maximum to your 401(k) ($23,000 in 2026). Look at catch-up contributions and IRA options.
How much should I save monthly at age 40?
To reach the recommended 10x salary ($650,000) by age 65, starting from the median savings of $93,000, you would need to save approximately $145/month assuming a 7% annual return.