Successfully figuring out how much you need to retire means you’ll have enough money to cover your expenses and enjoy your golden years. But knowing if your retirement plan is on track isn’t always simple. 

To monitor your progress, consider using retirement savings milestones by age. While everyone’s journey is different, you can check these estimates to see where you stand and make adjustments. 

Why retirement savings milestones matter

Setting and reaching clear retirement savings goals can be challenging. As you age, you’ll need to think more about the lifestyle you want to live in retirement, inflation eroding your purchasing power, and how long your savings will last.

With so many moving parts to consider, understanding the average retirement savings by age can help you assess your current situation and decide what to do next.

Retirement savings by age: Key benchmarks to follow

These retirement savings milestones can help you set a plan for securing your financial future. Everyone’s journey is different so take this as general information. What works for someone else (or the average person) may not work for you. 

Age 30: 0.5x–1x your annual income

In your 20s, you might be in college or just starting a career. You’ll likely have less to invest in retirement, so try to set aside six months to a year’s worth of income by the time you hit 30.

Say you make $80,000 a year. Based on the guidelines above, you should have $40,000–80,000 in retirement savings by 30.

Age 40: 3x your annual income

It is suggested you shoot for three times your annual income in retirement savings by 40. Based on an $80,000 salary, that’s $240,000 saved.

If you haven’t already, consider maxing out your 401(k) and IRA contributions. This may or may not make sense for your financial situation and goals. These retirement accounts can offer tax benefits that are not provided by other investment and savings accounts.  Tax-deferred growth can allow your contributions to potentially grow more than if they were taxed annually. 

Age 50: 6x your annual income

Consider aiming to set aside six times your income by the time you reach your 50s. Based on a salary of $80,000 a year, you should have approximately $480,000 in retirement savings.

Although these retirement savings balances are getting larger, don’t make the mistake of accessing that cash early. You’ll likely pay taxes and withdrawal fees that can throw yourself off track. During your 40s, 50s, and beyond, a goal may be to reduce or eliminate debt and increase your retirement savings. 

Age 60: 8x your annual income

As you approach 60, you may want to set aside as much as possible. Based on a static $80,000 salary, you should have $640,000 in retirement savings at this point.

60 is a critical age because you can start withdrawing from most retirement savings accounts at 59½ without paying penalties., Some people may choose to retire a few years early once they hit this benchmark. To calculate how much you may need to retire at age 60, track your expenses, account for any retirement income, and create a budget based on your life expectancy.

Age 67: 10x your annual income

At this point, you may be retired or close to it. If you made $80,000 annually for all of your career and hit your retirement savings benchmarks, you should have about $800,000. 

Now it can be important to decide how to allocate these funds based on your life expectancy and lifestyle. Depending on how much you have in your 401(k), IRAs, and other investment accounts, you can calculate how many years your savings can sustain you. A common suggestion is that your annual spending should be around 4% of your retirement account balance.

What factors influence how much you need to retire?

These retirement savings goals are estimates — the actual amount you’ll need to retire can depend on the following factors. 

Desired retirement age

The longer you plan to work, the more time you should have to save and invest. For instance, planning to retire by 50 is a lofty goal and would likely require more income, higher savings rates, or a combination of both. But working until you’re 70 gives you an extra 20 years to set money aside, and delaying Social Security benefits until then increases your payments.

Anticipated lifestyle in retirement 

If you want to travel the world and buy a vacation home in retirement, $800,000 at age 67 might not be enough. But if you plan to sell your home and keep a low cost of living, Social Security and a more modest balance might support you. Conduct a realistic assessment of how you want to live in retirement and base your savings strategy on that.

Expected (and unexpected) healthcare costs

Healthcare often ends up being a significant expense in retirement. You could help anticipate these costs by contributing to a health savings account during your earning years. Also, you could designate a percentage of your retirement savings to cover expected and unexpected medical costs. 

Projected inflation and life expectancy

It may be important to factor in a cushion based on the anticipated inflation rate, how long you expect to live, and how your expenses will change when you retire.

Imagine your monthly expenses come out to $4,000 when you’re 40. If inflation rises at a steady pace of 2.5% annually, by age 60, you’ll need to spend over $6,500 a month to maintain your lifestyle. Forgetting to anticipate inflation costs can erode your savings faster than you planned.

Estimated monthly income

While it can be important to set aside as much as possible, keep in mind that you’ll continue getting some income during retirement. For instance, Social Security benefits pay out in full if you wait until 67 to start taking distributions. And other options, like annuity and 401(k) payouts, can help support your lifestyle. This income typically shouldn’t be the only thing you rely on, but it’s a good cushion to keep in mind.

How to catch up if you're behind on retirement savings

If you fall behind, you can take the following steps to get back on track. 

Boosting contributions to retirement accounts

Starting at age 50, the IRS permits catch-up contributions for most 401(k), 403(b), governmental 457 plans, and Thrift Savings Plans. In 2025, you can invest an additional $7,500 in these accounts to help increase your retirement savings faster.

Investing in annuities for predictable long-term income

Adding annuities to your retirement plan can remove some of the stress of falling behind. Gainbridge offers flexible annuity products with fixed rates and guaranteed retirement income streams, so you don’t have to worry about stock market risk or running out of money.

Adjusting retirement age

If you’re healthy and willing, working longer can help you pad your retirement accounts. Waiting to retire for a few years, particularly if you’re saving aggressively, can make a big difference. You don’t even have to keep a full-time schedule. Switching to part-time hours or getting a more relaxed job can reduce stress while providing a regular income.

Build a retirement plan with Gainbridge at any age

Following retirement savings benchmarks can help you plan for the future. But trying to predict healthcare costs, life expectancy, and stock market performance can make this process more difficult. 

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Annuities can add certainty to your retirement plan. Gainbridge’s annuities are designed to grow with you, and we never charge hidden fees or commissions. Explore Gainbridge’s flexible options today.

‍This article is intended for informational purposes only. It is not intended to provide, and should not be interpreted as, individualized investment, legal, or tax advice. For advice concerning your own situation please contact the appropriate professional. The GainbridgeⓇ digital platform provides informational and educational resources intended only for self-directed purposes.