How much should I have saved for retirement by age 30?

Fidelity recommends having 1× your annual salary saved by 30. The median American in their late 20s has approximately $33,000–$49,000 in retirement accounts. FIRE practitioners typically target 4–8× expenses saved by 30, which could mean $120,000–$400,000 depending on spending. If you are behind, don't panic — savings rate matters more than starting balance.

What is the average 401(k) balance by age?

According to Fidelity's Q3 2025 data, average 401(k) balances are: 20s ($16,000), 30s ($59,000), 40s ($130,000), 50s ($210,000), 60s ($230,000). However, averages are skewed by high balances. Median (50th percentile) balances are roughly 40-60% lower. FIRE practitioners with 50%+ savings rates typically have balances 3–5× these averages.

How much do I need to retire early at 40?

To retire at 40, you need 25× your annual expenses invested (using the 4% rule). If you spend $50,000/year, that is $1,250,000. If you spend $30,000/year (Lean FIRE), that is $750,000. Starting at 22 with a 60% savings rate, you could reach these numbers in approximately 12–13 years — by your mid-30s.

Is the average American behind on retirement savings?

Yes — significantly. The median retirement savings for Americans aged 55–64 is approximately $134,000, which would generate only about $5,360/year using the 4% rule. The Federal Reserve's Survey of Consumer Finances shows that roughly half of Americans aged 55–64 have less than $150,000 saved. This is why the FIRE movement's emphasis on savings rate over income is so important.

Average Retirement Savings by Age: How Do You Compare? (2026 Data)

How much should you have saved by now? It’s one of the most common financial questions — and the honest answer is: it depends on your expenses, not your age.

But benchmarks are useful for context. Below you’ll find the latest data on how Americans actually compare, what financial planners recommend, and what FIRE practitioners target at every age.

Average Retirement Savings by Age Group
Average 401(k) Balance by Age
Fidelity's Savings Benchmarks
FIRE Movement Targets by Age
What to Do If You're Behind
FAQ

Average Retirement Savings by Age Group (2026 Data)

This data combines Federal Reserve Survey of Consumer Finances (SCF) findings with Vanguard’s “How America Saves” and Fidelity quarterly reports, adjusted for 2025–2026 trends:

Age Group	Average Savings	Median Savings	Gap
Under 25	$7,500	$2,100	Rich outliers skew average 3.5×
25–29	$49,000	$15,000	3.3× gap
30–34	$96,000	$33,000	2.9× gap
35–39	$166,000	$55,000	3.0× gap
40–44	$250,000	$82,000	3.0× gap
45–49	$324,000	$115,000	2.8× gap
50–54	$420,000	$148,000	2.8× gap
55–59	$510,000	$170,000	3.0× gap
60–64	$540,000	$182,000	3.0× gap
65+	$490,000	$164,000	3.0× gap — many drawing down

Why Average ≠ Median

Always use the median. A small percentage of high-net-worth individuals dramatically skew averages upward. The median ($82,000 for 40–44) tells you what the "middle" American actually has. If you're above the median, you're ahead of half the country.

Average 401(k) Balance by Age

401(k) data from Fidelity Investments (the largest 401(k) administrator in the U.S.) as of late 2025:

Age Group	Average 401(k)	Median 401(k)	Average Contribution Rate
20–29	$16,500	$6,200	7.7%
30–39	$59,200	$22,400	8.5%
40–49	$130,100	$47,800	8.8%
50–59	$210,300	$77,200	9.6% + catch-up
60–69	$230,400	$87,600	10.1% + catch-up

Notice the average contribution rate across all ages is under 10%. For context, FIRE practitioners typically contribute 50–70% of their income across all accounts. That’s the difference between retiring at 65 and retiring at 40.

Fidelity’s Rule-of-Thumb Benchmarks

Fidelity’s widely cited guideline uses multiples of your gross salary:

Age	Fidelity Target	Example ($75K salary)	Example ($100K salary)
30	1× salary	$75,000	$100,000
35	2× salary	$150,000	$200,000
40	3× salary	$225,000	$300,000
45	4× salary	$300,000	$400,000
50	6× salary	$450,000	$600,000
55	7× salary	$525,000	$700,000
60	8× salary	$600,000	$800,000
67	10× salary	$750,000	$1,000,000

The Fidelity Method Has a Flaw

Using salary as the benchmark assumes your spending scales with your income. FIRE practitioners know that expenses determine your retirement number, not income. A high-earner saving 60% needs far less than 10× their salary. Use the 25× expenses method instead for FIRE planning — or use our calculator.

FIRE Movement Targets by Age

These targets assume a 50% savings rate, $60,000 in annual expenses, and 7% nominal / 5% real investment returns:

Age	FIRE Target (25× expenses)	On Track Balance	Status
25 (start)	$1,500,000	$0	Starting line
28	$1,500,000	$105,000	7% of target
30	$1,500,000	$180,000	12% of target
33	$1,500,000	$315,000	21% of target
35	$1,500,000	$430,000	29% — may hit Coast FIRE
38	$1,500,000	$650,000	43% of target
40	$1,500,000	$830,000	55% of target
42	$1,500,000	$1,050,000	70% — almost there
44	$1,500,000	$1,500,000+	🎯 FIRE achieved

The bottom line: At a 50% savings rate, you reach FIRE in ~17 years from any income level. Calculate your exact timeline →

What to Do If You’re Behind

If your balances are below the medians above, here’s your action plan:

1. Don’t Panic — Start Today

The most powerful variable is time in the market, not timing the market. Even starting at 35 or 40 with zero savings, a 40–50% savings rate can get you to FIRE by 55–57.

2. Focus on Savings Rate, Not Dollar Amount

Your savings rate matters far more than your current balance. A 50% savings rate will get you to FIRE in 17 years whether you start with $0 or $100,000.

3. Max Out Tax-Advantaged Accounts

In 2026, contribution limits are:

401(k): $24,000 ($31,500 if 50+, $27,500 if 60–63)
IRA: $7,000 ($8,000 if 50+)
HSA: $4,300 individual / $8,550 family

Every dollar in a tax-advantaged account works harder. See the full 2026 limits guide →

4. Invest in Total-Market Index Funds

The evidence overwhelmingly supports low-cost, broad-market index funds. A three-fund portfolio (U.S. total market, international, bonds) captures global market returns at near-zero cost.

5. Increase Income Strategically

While cutting expenses has a floor, income has no ceiling. Focus on high-ROI career moves: negotiate salary (+$5–15K), build marketable skills, or start a side business.

Your Next Steps

Frequently Asked Questions

Fidelity recommends 1× your salary. The median American in their early 30s has about $33,000 in retirement accounts. FIRE practitioners with a 50%+ savings rate who started at 22 would have roughly $180,000+ by 30. If you're behind, focus on maximizing your savings rate going forward — it's the most impactful variable.

Per Fidelity data: 20s ($16,500 avg / $6,200 median), 30s ($59,200 / $22,400), 40s ($130,100 / $47,800), 50s ($210,300 / $77,200), 60s ($230,400 / $87,600). Always focus on the median — averages are heavily skewed by high balances.

Using the 4% rule: 25× your annual expenses. At $40,000/year expenses = $1,000,000. At $60,000/year = $1,500,000. Starting at 22 with a 55% savings rate and 7% returns, you'd hit $1.5M around age 40–42. Use our calculator with your specific numbers.

Yes. The median 55–64 year old has roughly $170,000 saved — generating only about $6,800/year at 4%. Social Security replaces roughly 40% of pre-retirement income for the median earner, but that still leaves a significant gap. This is exactly why the FIRE movement's emphasis on high savings rates early in your career is so powerful.