One of the most common questions Americans have about retirement is, "How much do I really need to save?" The answer depends on a range of personal factors—your income, lifestyle, retirement age, health, and more—but there are general guidelines that can help you get started and stay on track.
The first step is to estimate how much money you’ll need in retirement. Financial experts often recommend planning to replace about 70% to 80% of your pre-retirement income. For example, if you earn $70,000 a year before retirement, you may need $49,000 to $56,000 per year during retirement to maintain a similar lifestyle.
Keep in mind that some expenses may decrease in retirement, such as commuting or work-related costs, while others—like healthcare—could increase. A good starting point is to estimate your monthly expenses in today’s dollars, then adjust for inflation and future needs.
A widely accepted rule of thumb is to save at least 15% of your gross income each year toward retirement. This includes both your contributions and any employer match you receive. If you're starting early, this level of savings could be enough to retire comfortably at age 65.
If you're starting later in life, you may need to save more than 15% to catch up. For those in their 40s or 50s who haven't saved much yet, increasing contributions and taking advantage of catch-up contributions is essential.
Fidelity and other financial institutions offer age-based savings benchmarks to help you stay on track:
These are general guidelines and may not apply to everyone, but they provide a useful reference point as you evaluate your progress.
There are many free online retirement calculators that can help you figure out how much you need to save based on your current age, savings, expected expenses, and retirement age. These tools take into account inflation, investment growth, and Social Security to give you a more personalized estimate.
While Social Security provides a valuable income stream, it’s not intended to replace your full salary. The average monthly benefit as of 2025 is around $1,900, or roughly $22,800 annually. That’s likely far below what most people will need to cover expenses in retirement, so your own savings are crucial.
To hit your savings goals, take full advantage of accounts like 401(k)s, Traditional IRAs, and Roth IRAs. In 2025, you can contribute up to $23,000 to a 401(k), plus an additional $7,500 if you’re age 50 or older. IRAs allow up to $7,000 in contributions, with a $1,000 catch-up for those 50+.
By consistently contributing to these accounts, you benefit from tax breaks and compound growth, which help your money grow faster over time.
Your retirement plan isn’t set in stone. Life changes—such as marriage, children, or career shifts—may require you to reassess your goals and adjust your savings rate. Review your retirement plan at least once a year and make changes as needed.
It’s also important to adjust your investments over time. As you get closer to retirement, you may want to shift to more conservative investments to protect your savings from market volatility.
If you're 50 or older, you’re eligible to make catch-up contributions. These additional savings can make a big difference, especially if you started saving later in life. Take full advantage of these increased limits to boost your retirement funds in your final working years.
There’s no one-size-fits-all answer to how much you should save for retirement, but aiming for at least 15% of your income and following age-based milestones can help you stay on track. The key is to start as early as possible, contribute consistently, and take full advantage of retirement accounts and employer matches.
By understanding your retirement needs and adjusting your strategy over time, you’ll be in a much stronger position to enjoy a comfortable, financially secure retirement—no matter when you start.