Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9

Important Information: We’re here to help, click here for important information on our coronavirus response.

Back
Scroll to top

How Much Should a 40-Year-Old Have Saved for Retirement?

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:

  1. Pay off as much of your credit card and consumer debt as possible
  2. Ensure your emergency fund is ready and available if and when you need it
  3. 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

Securities and insurance products are offered through INFINEX INVESTMENTS INC., Member FINRA/SIPC. INFINEX INVESTMENTS INC. and FB Wealth Management, a division of First Bank, are affiliated entities. Investment and Insurance Products are:

NOT Bank Deposits NOT FDIC-Insured HAVE NO Bank Guarantee
NOT Insured by any Federal Government Agency May Go Down in Value

Trending Topics

Best Business Checking Account – Jacksonville NC

Running the best business in Jacksonville, North Carolina starts with having the best business checking account in Jacksonville, NC. And, opening the best business checking account in Jacksonville starts with a trip to one...

Workers’ Compensation Insurance 101

If you’re starting a business and are unsure of the purpose of workers’ compensation insurance or how to acquire it, then you’ve come to the right place. This kind of state-mandated insurance covers...

Best Business Checking Account – Lillington, NC

If you are a business owner, you know how important proper finance management is to running a successful business. Separating your business bank account from your personal bank account can ensure accurate bookkeeping. If...

First Bank One Rewards Program: Learn More

There are a lot of advantages to being a First Bank debit or credit card holder, but the First Bank One Rewards Program is the most beneficial to you. By simply using your First Bank Debit, Platinum or World...

First Bank is One of the Top Banks in the U.S.A.

When searching for the top banks in the U.S., it is often smarter to work with a small community bank over a national bank. Small banks often have deeper connections to the community and are invested in the success of...

Small Business Line of Credit

Obtaining a line of credit for your small business can help your entrepreneurial spirit take the company to the next level. This line of credit can be a more affordable option than a business loan because you only pay...

Save Money with This Refinance Calculator for Home Mortgages

When mortgage interest rates are low, homeowners should compare their current mortgage terms with the option of refinancing. By locking in the right rate, homeowners can take advantage of significant savings. Curious to...

New Business Loan in Jacksonville, NC

First Bank helps businesses get off the ground in Jacksonville, NC with our new business loans and various sets of helping hands. Our new business loans can provide a lump sum of cash for your business to finance...

Breathe Easy with Affordable Small Business Loan Rates in Albemarle, NC

First Bank has remained committed to helping small businesses and communities flourish since we opened our doors in 1935. Our dedication to providing a robust package of banking solutions with a personalized touch is why...

Rental Property Mortgage Rates – Florence, SC

Owning a rental property is a popular way to build some equity, qualify for tax benefits and earn some easy cash.* In Florence, SC, competitive rental property mortgage rates can be found at our First Bank locations on...