Key Points
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One rule of thumb says you should have 3 times your salary saved for retirement by age 40.
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In reality, most savers have far less than this set aside.
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See if you can increase your contributions or consider adjusting your retirement plan if you’re behind where you want to be.
By the time you’ve reached your 40s, you’re often pretty well established in your career. You’re probably earning more than you did in decades past, and you may have access to better retirement benefits through your job. But that doesn’t mean you feel on track for the retirement you want or that you even know what “on track” looks like.
That’s OK. A lot of people are in the same boat. The truth is, there’s no magic number to aim for. But there are some rules of thumb you can use to gauge how you’re doing compared to other 40-year-old savers.
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How much you should have saved for retirement by age 40
One common piece of advice says you should have saved 3 times your salary by age 40 to be on track to retire with 10 times your salary by age 67. If we apply this to the median weekly earnings of $1,251 for full-time workers during the second quarter of 2026, that gives the average worker a savings target of just over $195,000.
But there are a lot of variables here. Your salary has probably changed over the years, so pinning down the exact amount you should aim for isn’t always easy. And if you plan to retire earlier than 67, you might need even more than 3 times your salary saved by age 40. So it’s fine to use the method as a baseline, but you’ll want to adjust it up or down to suit your own retirement goals.
If you find you’re behind where you should be, it may comfort you to know you’re not alone. The median 401(k) account balance for adults aged 35 to 44 is just $46,919, according to Vanguard. Even the average balance of $120,742 is lower than what our example above suggests. But there’s still time to turn things around.
What to do if you’re struggling to save as much as you’d like
At 40 years old, you still have plenty of years left to save for retirement, so don’t panic if you’re not where you’d hoped to be by now. Start by taking stock of how much you have in savings. Don’t forget about old retirement accounts from past employers. Then, compare this to how much you think you’ll need in retirement to figure out how much more you have to save.
Increase your retirement contributions if possible, and do your best to claim any 401(k) match you’re eligible for. If you can’t afford to spare much cash right now, increase your contributions whenever you get a raise, and consider stashing year-end bonuses or tax refunds in your IRA for a little extra boost.
Just focus on doing the best you can right now, and review your progress annually or whenever you go through a major life or financial change. Worst-case scenario, you may have to rethink your retirement plans. But if you’re diligent about saving, you still have a good chance of making up for lost time.
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