By age 40, you should have 3x your annual salary saved for retirement. Here’s what that looks like.
Retirement Savings Target at 40
| Your Salary | Target Savings (3x) |
|---|---|
| $75,000 | $225,000 |
| $100,000 | $300,000 |
| $125,000 | $375,000 |
| $150,000 | $450,000 |
How You Compare: Average 401(k) Balance at 40
| Metric | Amount |
|---|---|
| Average 401(k) balance (40-44) | $115,000 |
| Median 401(k) balance (40-44) | $40,000 |
| Target (3x salary) | ~$300,000 |
Data: Fidelity Q3 2024
25 Years of Growth Ahead
| Monthly Savings | Balance at 65 (7% return) |
|---|---|
| $750 | $568,000 |
| $1,000 | $758,000 |
| $1,500 | $1,137,000 |
| $2,000 | $1,516,000 |
What If You’re Behind at 40?
| Current Savings | Monthly to Hit 3x by 45 |
|---|---|
| $100,000 | $2,800/month |
| $150,000 | $2,050/month |
| $200,000 | $1,300/month |
Assumes $100K salary, target of $300K, 7% returns
The good news: You still have time, but it requires aggressive saving.
Catch-Up Strategy at 40
- Max out all tax-advantaged accounts — $30,000+ per year
- Open taxable brokerage — For savings beyond retirement limits
- Pay off high-interest debt — Credit cards eat returns
- Avoid lifestyle inflation — Bank raises and bonuses
- Consider side income — All extra income to investments
Countdown to Catch-Up Contributions
At 50, you can contribute an extra $7,500 to your 401(k). Plan for this boost:
| Age | Years Until Catch-Up |
|---|---|
| 40 | 10 years |
| 42 | 8 years |
| 45 | 5 years |
| 48 | 2 years |
Related Guides
- How much saved for retirement at 35
- How much saved for retirement at 45
- Average 401(k) balance by age
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