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    How much should I save for retirement?

    may 8, 2026

    According to Northwestern Mutual's 2025 Planning & Progress Study, Americans believe they will need $1.26 million to retire comfortably.¹ That number has come down from recent highs, but might still exceed what most people have actually saved or are on track to save.

    So how much should you save for retirement? The practical answer is that it depends on when you want to retire, where you plan to live, what your lifestyle looks like and what income sources you'll have available. There is no single right number, but there are useful benchmarks, actionable strategies and ways to build the kind of plan that answers this question for you specifically.
     

    Retirement savings by stage

    When it comes to gauging where you stand, salary-based or income-based milestones offer a useful starting point.

    According to Fidelity, a reasonable guideline is to aim to save at least:2

    • one times your salary by age 30
    • three times by 40, six times by 50
    • eight times by 60
    • ten times by age 67

    These are aspirational targets, not pass-or-fail thresholds. They're designed to account for the reality that most people's paths to retirement are not perfectly linear.

    If you're in your 50s or 60s and the numbers aren't exactly where you hoped they'd be, that's not unusual, and it doesn't mean you're out of options. Depending on your timeline and your other income sources, even incremental progress can make a positive difference in what retirement can look like for you.

    It's also worth noting that these benchmarks assume a retirement age of 67. If you plan to retire earlier, you may need to save at a higher rate. Your specific target will always depend on factors that no single formula can fully capture—which is exactly where a financial professional may be able to help.
     

    How to reach your benchmarks

    What do these benchmarks look like on an annual basis? Fidelity's research is based on the assumption that a person saves 15% of their pre-taxed income—including any employer match—annually, invests over 50% of their savings in stocks, retires at age 67 and maintains their preretirement spending habits in retirement.³ If that's not where you are right now, starting where you can and increasing your rate over time is a simple approach worth considering. For investors age 50 and older, catch-up contributions offer an additional opportunity to help accelerate savings during peak earning years.

    • In 2026, those 50 and older can contribute up to $32,500 annually to a 401(k), and investors ages 60 to 63 may contribute up to $35,750 under the SECURE Act 2.0's enhanced catch-up provision.⁴
    • On the IRA side, the 2026 contribution limit is $7,500, with an additional $1,100 catch-up available for those 50 and older.5

    For investors in their 50s and 60s, taking advantage of these opportunities could have an impact on your overall retirement plan.
     

    The variables that shape your numbers

    Benchmarks and percentages are useful, but what does retirement actually cost?

    According to the Bureau of Labor Statistics, adults 65 and older spend an average of $78,535 per year across all household expenses.6 That number will look different for everyone depending on a set of personal variables, like:

    • Retirement age. The earlier you plan to stop working, the longer your savings will need to last—and the more you may need to accumulate before you get there.
    • Lifestyle expectations. If you’re travelling frequently or spending lavishly, your money won’t last as long.
    • Healthcare. Health and medical costs tend to rise with age, and for those who retire before Medicare eligibility at 65, bridging that coverage gap can be a large expense.
    • Social Security timing. When to apply for Social Security is one of the most common questions we hear. Delaying your claim beyond your full retirement age can increase your monthly benefit, which in turn may reduce the pressure on your savings to cover all of your income needs. 

    For some investors, retirement products like annuities can play a role in creating a reliable income stream in retirement—one that doesn't depend entirely on what the market is doing in any given year. When predictable income is part of the plan, the savings benchmark you need to hit may look different than it would otherwise.
     

    Getting the estimate that’s right for you

    How much you should save for retirement is ultimately a question best answered by leveraging planning tools and having on-going conversations with a financial professional who understands these two things:

    • Your overall picture
    • The current retirement landscape

    These evolving insights can help structure a more focused review.

    Use our retirement expenses & income calculator to track expenses, spot income gaps and revisit your plan over time.
     

    Start calculating

    Here are some questions you should answer and re-assess on an annual basis:

    • Can I still retire by my goal date, and if not, what would a revised timeline look like?
    •  If I postpone retirement, how will that affect my Social Security benefit?
    • What changes to my current saving or spending habits would have the most impact on closing any retirement income gap?
    • How has inflation affected my retirement plan, and what steps can I take to help protect against it going forward?
    • Do I have the right mix of taxable and tax-free income sources to manage my tax burden in retirement?
    • What are the catch-up contribution opportunities available to me at my age?

    Is a guaranteed income source worth exploring as part of my overall retirement plan? There are no wrong or repetitive questions to bring to this conversation—what matters is that you keep asking them.
     

    The most important thing you can do right now

    No formula, benchmark or calculator can fully account for the life you want to live in retirement, but the strategies we’ve mentioned here can give you a clearer picture of what it might take to get there. The most valuable thing you can do with this type of information is to take the next step. Right now, while it’s fresh on your mind and the wheels are turning. There’s no reason to put this off another week, month or year.   

    Whether you're exactly where you hoped to be at this stage or still working toward the milestones that matter to you, make the next conversation you have with your financial professional worthwhile.

    Discuss building a flexible plan that reflects your income, your timeline, your goals and your specific circumstances. An honest conversation about where you are and where you want to be is far more useful than any general guideline.

    The steps you take from here are what will help shape the retirement ahead of you.

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    1.  Northwestern Mutual, "Americans Believe They Will Need $1.26 Million to Retire Comfortably According to Northwestern Mutual 2025 Planning & Progress Study," April 14, 2025.

    2. Fidelity, "How much do I need to retire?," February 14, 2025.

    3.  Ibid.

    4. Internal Revenue Service (IRS), "401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500," November 13, 2025.

    5. Ibid.

    6. Bureau of Labor Statistics, "Consumer Expenditure Surveys — 2024," December 19, 2025.

    Annuities are long-term, tax-deferred vehicles designed for retirement and are insurance contracts. Variable annuities and registered index-linked annuities involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax for withdrawals before age 59½ unless an exception to the tax is met. Add-on living benefits are available for an extra charge in addition to the ongoing fees and expenses of the variable annuity and may be subject to conditions and limitations. There is no guarantee that a variable annuity with an add-on living benefit will provide sufficient supplemental retirement income.

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