This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognizing you when you return to our website and helping our team to understand which sections of the website are the most popular and useful.
How Much Should a 40-Year-Old Have Saved for Retirement?
Ready to talk to an expert?
Are you 40 years old and concerned about your savings? Just how much should you have saved for your retirement by now? There’s no precise answer to give you, but there are some savings recommendations based on income. If you don’t meet these suggestions just yet, don’t panic. The key is to get on the right track right away, and these guidelines can help you do exactly that.
Income-Based Savings for a 40 Year Old
While some financial advisors suggest having your savings match your annual income, others suggest a more ambitious goal of having three times your salary in savings. That means an estimated savings range of:
| Income | Estimated Range in Savings |
| $50,000 | $50,000 — $150,000 |
| $75,000 | $75,000 — $225,000 |
| $100,000 | $100,000 — $300,000 |
| $150,000 | $150,000 — $450,000 |
| $200,000 | $200,000 — $600,000 |
Financial Goals for Your 40s
By your 40s, you should focus on these three financial goals if you don’t already have them in order:
- Pay off as much of your credit card and consumer debt as possible
- Ensure your emergency fund is ready and available if and when you need it
- Grow your retirement account, even on its own
Are you struggling to make these things happen? You might consider the tips below to help you get on the right track.
- Create a budget. By knowing how much you spend each month, whether on eating out, fixing home repairs or car problems, or paying phone bills, you can more easily visualize how much you need to save.
- Take advantage of employer-matched retirement. Whether it’s a 401(k) or an IRA plan, or something entirely different, make the most of what your employer is offering you. It’s the easiest and least painful way to save money for retirement.
- Learn what counts as a true emergency. Differentiate between what should require you to dip into your savings and what isn’t a true necessity.
If you need assistance planning for your future and creating a solid savings, First Bank* can help. First Bank is a community bank and has been helping residents of North Carolina and South Carolina reach their financial goals since 1935. Find a branch near you to speak with a financial advisor today.
———
Sources:
Time: http://business.time.com/2012/09/21/what-you-should-save-by-35-45-and-55-to-be-on-target/
Forbes: http://www.forbes.com/sites/learnvest/2013/10/24/40-money-things-you-need-to-know-by-40/#4c620e126cb4
Investment and insurance products and services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Osaic Institutions and FB Wealth Management, a division of First Bank, are not affiliated. We do not provide tax advice. Consult your tax advisor. Investment and Insurance Products are:
| Not Guaranteed by the Bank | Not FDIC Insured | Not a Deposit |
| Not Insured by Any Federal Government Agency | May Lose Value including Loss of Principal | |
Sign up for our newsletter and be the first to know about new tips, insights, and products from First Bank.