A common benchmark is to have 1x your annual salary saved by age 30. If you earn $60,000, aim to have $60,000 in retirement savings. For total savings (including emergency fund), target $70,000–$80,000.
The most widely cited guideline comes from Fidelity Investments: save 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. On a $60,000 salary, that means $60,000 in retirement savings by 30.
But this is just a benchmark — not a pass/fail test. What matters more is your savings rate. If you're saving 15–20% of your income consistently, you're on a strong trajectory regardless of your current balance. Someone who started saving at 28 with a high savings rate will likely catch up to someone who started at 22 with a low rate.
Beyond retirement savings, you should also have 3–6 months of expenses in an emergency fund ($9,000–$18,000 on a $3,000/month expense budget) and be making progress on any high-interest debt.
The 1x salary benchmark scales with income. Higher earners may find it harder to save 1x by 30 if they started with student debt, while lower earners may find the absolute dollar amount more achievable.
The average graduate carries $30,000+ in student loans. Aggressively paying down high-interest debt while saving at least enough to get your employer's 401(k) match is a balanced approach.
If your employer matches 401(k) contributions (e.g., 50% match up to 6%), that's free money. Contributing 6% with a 50% match effectively saves 9% of your salary with only 6% coming from your paycheck.
Living in a high-cost city (NYC, SF, LA) makes saving harder. Adjust expectations accordingly — saving 10% in a high-cost area may be equivalent to 20% elsewhere in terms of discipline required.
Use our Savings Goal Calculator to calculate your personalized answer based on your specific situation.