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If you’ve ever found yourself wondering whether you’re “on track” for retirement, you’re not alone. I’ve asked myself that question countless times — usually after seeing a headline like “You Should Have 3× Your Salary Saved by 40.”
I didn’t start saving for retirement until I was 24, fresh out of college and earning $30,000 a year. I knew I should be saving something, but the idea of “retirement” at that age felt like thinking about what I’d be eating for dinner in 40 years. Still, I decided to put around 10% of my salary into my company’s 401(k) — about $3,000 per year.
At the time, that felt like a huge chunk of my paycheck, but I stuck with it. As I changed jobs over the years and my salary grew, I bumped up my contributions. In my late 20s, I got more serious — I rolled over old 401(k)s to manage on my own, opened online high yield savings, and eventually started maxing out my contributions for years to come.
Now, at 38 going on 39, I’ve been saving for over a decade, but I still catch myself wondering: Am I behind? How much should I really have saved by now?
The truth is, retirement saving is one of those areas where most people feel behind — even those doing well. So, let’s take a step back and look at what the data says, what the experts recommend, and how to figure out whether you’re actually on track.
The Reality: Most People Feel Behind
According to Fidelity Investments, the average 401(k) balance for people ages 35–39 is about $73,000, and the median is around $45,000. That means half of people in that age range have less than $45K saved for retirement.
When I first saw that, I felt a small wave of relief. Even though I didn’t start until 24, I’ve contributed regularly and maxed out my 401(k) for several years, so I’ve managed to save more than that (over half a million). In other words, by the national averages, I’m doing better than most.
But averages can be misleading. The “average saver” might not be saving nearly enough to retire comfortably. So while it’s comforting to know I’m not behind the typical person, I wanted to know if I was actually on track to retire when I want to — without needing to drastically downsize my life later.
How Much You “Should” Have Saved By Age
There’s no one-size-fits-all answer, but many financial planners use a set of salary-based benchmarks to help people gauge their progress. These are general targets — not rules — but they can give you a sense of where you stand.
According to Fidelity’s widely-cited guidelines, here’s how much you should have saved (in retirement accounts like 401(k)s or IRAs) by each milestone age:
| Age | Savings Target |
|---|---|
| 30 | 1× your annual salary |
| 35 | 2× your salary |
| 40 | 3× your salary |
| 45 | 4× your salary |
| 50 | 6× your salary |
| 55 | 7× your salary |
| 60 | 8× your salary |
| 67 | 10× your salary |
These numbers assume you start saving around 25, contribute 15% of your income (including employer match), and earn a moderate investment return over time.
If you’re 38 or 39, that “3× your salary” rule of thumb means if you make $80,000 per year, you’d ideally have about $240,000 saved. If you earn $100,000, your target would be $300,000.
Now, that might sound intimidating. Many people don’t come close to that number — but remember, these are goals, not requirements. They assume decades of steady saving, no major setbacks, and consistent investment growth. Real life rarely works out that cleanly.
Let’s Put This In Context
When I started saving at 24, I was making $30,000. Ten percent of that — $3,000 — was all I could afford.
Let’s do some quick math: I saved $3,000 the first year then max out every year based on the IRS limits until 2024 (ages 24–37), that’s $219,000 in contributions. Add some modest investment growth, and maybe I had around $523,000 by age 37.
So, after roughly 14 years of saving, my total contributions could be somewhere around $600,000. With investment growth, maybe it’s more — maybe it’s less. But the point is: I’m doing better than the median saver, and I’ve built momentum.
The earlier contributions may not have been large, but those dollars have had time to compound. And now that I’m in my late 30s, my money is finally starting to “snowball.”
That’s one of the biggest lessons I’ve learned: The real payoff from consistent saving doesn’t show up until you’ve been doing it for a while.
The Power Of Compounding — And Why Time Beats Timing
Here’s the beauty (and curse) of retirement saving: time is the most powerful variable.
If you start at 22 and save $300 a month for 40 years, earning a 7% return, you’ll end up with about $750,000.
But if you wait until 32 and save double that — $600 a month — you’ll end up with $720,000.
You contributed twice as much, but ended up with less. Why? Because those first ten years of compounding make a massive difference.
That’s why starting at 24 wasn’t actually late — but it also explains why I sometimes feel behind. The people who started at 22 and saved consistently got an extra few years of compound growth that you can never fully catch up to, even with bigger contributions later.
The key is not to dwell on when you started, but on what you’re doing now. The fact that I’ve been maxing out my 401(k) for several years means I’m catching up fast — because every dollar I invest now has 25+ years to grow.
How To Know If You’re Really “Behind”
Instead of comparing yourself to averages, try answering these three questions:
1. What’s your retirement goal?
Do you want to retire at 60? 65? 70? Do you envision traveling, downsizing, or working part-time?
The lifestyle you want determines the income you’ll need — and that drives how much you should be saving now.
2. How much income will you need in retirement?
A common rule of thumb is to replace 70–80% of your pre-retirement income.
If you make $100,000 now, plan to live on $70,000–$80,000 per year in retirement.
Using the 4% “safe withdrawal rate,” you’d need roughly 25× that annual income.
So, to generate $80,000/year, you’d need around $2 million saved by retirement.
That may sound overwhelming, but remember — the bulk of that growth comes from compounding, not just what you contribute.
3. How much are you saving now?
If you’re saving at least 15% of your income (including employer match), you’re likely on track for a comfortable retirement, assuming you started in your 20s or 30s.
If you started later, consider boosting that rate to 20% or more for a few years to catch up.
The Average vs. The Ideal
Let’s look again at where people actually are.
According to Federal Reserve data:
- Ages 35–44: Median retirement savings ≈ $45,000
- Ages 45–54: Median ≈ $115,000
- Ages 55–64: Median ≈ $185,000
That’s a sobering picture — most people are far from the “ideal” benchmarks. But here’s the silver lining: if you’re actively saving, investing in your 401(k) or IRA, and increasing your contributions as your income grows, you’re already ahead of the curve.
You can’t control where you started, but you can absolutely control what you do next.
What To Do If You Feel Behind
If you’re reading this and thinking, “Well, I haven’t been maxing out anything,” don’t panic. Here’s what you can do right now:
- Know your numbers.
Log into all your retirement accounts and see what you have. Add them up — 401(k), IRAs, old job accounts. Knowing the total gives you power. - Increase your contributions.
Even an extra 1–2% makes a difference. If you get a raise, funnel part of it directly into your retirement savings. You won’t miss what you never see. - Get the match.
Never leave free money on the table. Always contribute enough to get your employer’s full 401(k) match. - Open an IRA.
If you’re already maxing out your 401(k), or don’t have one, consider a Roth IRA. You’ll pay taxes now but withdraw tax-free later — a great hedge against future tax increases. - Invest wisely.
Avoid being too conservative too early. In your 30s and 40s, you still need growth, not just safety. A well-diversified portfolio of stock index funds can be your best long-term friend. - Stay consistent.
The market will swing — ignore the noise. Keep contributing through highs and lows. That’s how compounding does its magic.
My Takeaway: Focus on Progress, Not Perfection
When I started saving at 24, I honestly didn’t know what I was doing. I just knew I should be putting something away. Now, 15 years later, I’m grateful I did — even if I wish I had saved more.
Am I exactly where every retirement chart says I “should” be? Maybe not.
Am I doing better than the average 38-year-old saver? Probably yes.
Am I confident I can retire comfortably if I stay consistent? Definitely.
The point is, retirement planning isn’t about perfection — it’s about direction.
Every year you keep saving, every time you bump up your contribution, every time you resist the temptation to cash out an old 401(k) — you’re moving closer to financial freedom.
Final Thoughts
If you’re in your 20s, start now — even if it’s $50 a month.
If you’re in your 30s or 40s, don’t panic — you still have plenty of time to build serious wealth.
If you’re already saving consistently, pat yourself on the back — you’re doing what most people never do.
I didn’t start early. I didn’t always save perfectly. But I stayed consistent.
And that’s what matters most.
Retirement saving isn’t about chasing some arbitrary number — it’s about buying your future freedom, one paycheck at a time.
So whether you’re 24 or 39, the best time to start — or restart — is now.
Your future self will thank you.
