Skip to main content
Find Your Local Branch
Back
Scroll to top

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

Personal Finances 3 min read

Ready to talk to an expert?

Find A Location Get In Touch

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

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

Ready to talk to an expert?

Find A Location Get In Touch
Share:

You may be interested in...

Savings Account – South Carolina If you live in South Carolina and are looking for a savings account, your local First Bank can help. We offer savings accounts to meet a variety of needs, and we are dedicated to helping you find the best way to save. Savings Accounts from First Bank in South Carolina First Bank offers a variety of savings accounts, including: Everywhere Savings MyFirst Savings Money Market CDs IRAs Health Savings Accounts Use our Savings Account Comparison Tool to compare accounts and see which one is right for you.  Looking for a business savings account? First Bank can help with that too. Learn more about our Business Savings accounts. Tips for Growing Your Savings Savings accounts are a great way to cover unexpected costs in the future, or just have a little extra money when you need it.  If you have a hard time saving, consider these money saving tips from Practicalmoneyskills.com. Make Saving a Priority – It is easy to lose track of resolutions, but if you make a plan, you can avoid falling behind. Determine what you want to save for, and be as vigilant about it as you are about paying rent or buying groceries. Find Money to Save – After paying the bills and buying what you need it might seem like you don’t have any money left to save. Chances are you can find extra money you didn’t even know you had just by keeping track of your spending and cutting back on buying things you don’t need. Get a jumpstart on saving by opening a savings account at First Bank in South Carolina. We have 6 savings account options that are designed to meet the needs of our individual customers. To open an account or learn more about our savings account options, visit one of our South Carolina branches today. 2 min read
Your Community Bank If you live in North Carolina or South Carolina, you have a ton of banking options right outside your door. Large financial institutions may seem like your best option for banking services at first, but community banks typically offer more consumer-friendly services and fewer fees. Choose the Right Community Bank First Bank is your community bank that cares about local roots. Since 1935, we have been providing our customers with community-centric banking services, including: Personal banking options, such as checking accounts, savings accounts, debit and credit cards, personal loans, and more. Business banking options, like checking and savings accounts, business loans, merchant services, and treasury services. Wealth management services, like asset managements, mutual funds, and estate services. Insurance products, such as life and health insurance for individuals and commercial insurance for businesses. Mortgage loan options, including conventional, government, jumbo, first-time home buyer, and more. The Benefits of a Community Bank According to Bankrate.com there are many other advantages to choosing a community bank over a big bank. For example: Community banks are relationship-based, and the employees typically know you and your whole family on a personal level. Community banks are also smaller and can therefore offer personalized service. Community banks also typically offer lower fees and lower balance requirements than big banks. Being smaller allows community banks to have more lending flexibility than bigger banks Community banks tend to stick to their local roots, which means they strive to offer great services with low fees and give back to the community. First Bank is small enough to know you like a neighbor, large enough to handle all of your banking needs, and dedicated to supporting our local communities. To learn more about us and our banking services, visit your local First Bank branch today. ——— Sources: Bankrate: http://www.bankrate.com/banking/community-banks-vs-big-banks/ 2 min read
What Is the Best Savings Account for Kids The success of child savings accounts has been well documented. We can probably all agree that a savings account for kids is a good decision, but what is the best savings account for kids? First Bank offers a savings account called MyFirst Savings and it’s not hard to argue that it might just be the best savings account for kids. Here’s why: It’s just for kids. MyFirst Savings is exclusively for children under the age of 18. It’s easy and affordable to open. There’s only a $10 initial deposit required to open the account and it can be done simply by visiting one of First Bank’s 100+ locations throughout the Carolinas. The money will grow. There’s no minimum balance to earn interest so your child’s money will start growing from the day the account is opened. You’ll have access to the money. You can make two withdrawals per month with no First Bank fees and with our online and mobile banking you’ll be able to always keep an eye on your money.* You’ll be kept in the know. Free monthly paper or electronic statements provide you a record of the account history and our email, phone call or text message activity alerts notify you of each transaction that happens in the account. Opening a savings account for children is one of the best things a parent can do. And in order to open the very best savings account for kids, simply visit your nearest First Bank today. Or to simply learn more about the account, visit the MyFirst Savings page and download a free coloring book for your child featuring Troy the Plott Hound! While First Bank does not charge for mobile banking, your mobile carrier’s message and data rates may apply. 2. Withdrawal fee of $2 each after the first two during the month. Federal regulations limit withdrawals of preauthorized transfers to two (2) per month, including checks, drafts, online transfers, telephone transfers and debit card purchases. You may conduct an unlimited number of withdrawals at the ATM, in person at a branch, or by mail when the check is mailed to you. 2 min read
Finance 101: Banking Basics Finance 101: Investing in your financial future is one of the smartest things you can do. But there is more to building healthy finances than simply stashing away extra cash in your piggy bank. In this article, we cover a wide range of topics to help you learn the basics of finance and help you make educated decisions regarding your financial future. Checking Accounts For those new to finance, opening a checking account is a great first step. A checking account enables you to deposit money into an account that can be accessed by writing a check, using your debit card, or withdrawing money from your bank’s automated teller machine (ATM). The biggest advantage to having a checking account is that it keeps your money safe while allowing you to access it when needed. Unlike cash, if your debit card becomes lost or stolen your bank can put a stop on your account, prohibiting unauthorized users to access your money. Tips for using a checking account: Keep a running balance of your account to avoid overdrawing your account. Most banks charge an overdraft fee for purchases that are made with insufficient funds. Consider overdraft protection if your bank offers it to you. Familiarize yourself with your account’s minimum balance requirements. Savings Accounts A savings account is less accessible than a checking account, as the Federal Reserve limits the number of free transfers or withdrawals you can make from a savings account. According to Investopedia, “A regular savings account is easy to set up and maintain. You can usually link this type of savings account directly to your checking account at the same bank and quickly and easily move money between the two accounts. Having these two accounts linked can sometimes help you avoid overdraft charges and/or under-the-minimum-balance fees from your checking account.” Having a savings account can help you set aside money for emergencies and help you save for large purchases, all while earning interest. Credit Building and maintaining good credit will provide several advantages to you, including: Lower financing rates More negotiating power Attractive mortgage and refinancing rates Higher credit card limits and rewards While getting a credit card is a great first step to building your credit, maxing out your credit card, failing to pay your credit card bill 4 min read
First Bank logo
Powered by  GDPR Cookie Compliance
Privacy Overview

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.