How Much You Should Have Saved by Every Age

Saving money at an early age can lead to a comfortable retirement. This is how much you should have saved by every age.

Saving money is essential for living comfortably, especially in your later years. It's important to start saving as early as possible, with your investments gathering interest as you get older. Your gains will only grow more each year. It also shows you a disciplined method of spending your money and develops good financial habits. Just saving a dollar a day can add up and lead to some sort of financial stability. Here's how much you should have saved by every age.

18 Years Old

By the age of 18, you should have worked at least a couple jobs in high school. And if you haven't spent all of your money on weed and video games by now, you should have saved at least 15 percent of your paychecks. This amount will help with paying for college or any amenities you may need, such as dorm supplies and the basic necessity of food.

22 Years Old

After graduating college, you might be facing the harsh realities of student debt. This is where the importance of knowing how much you should have saved by every age comes in. If you save 25 percent of your paychecks or at least $2,000, it will be easier to pay them off in monthly installments. Living at home also cuts down the costs of living and should be able to buy you some time to work and save up money for your own place. If you're able to find a suitable career out of college, then it's important to save by every age as much as you can.

26 Years Old

Twenty-six is an important age. Currently, it's the final year you're able to stay on your parents' health insurance plan. When you get older, having health insurance is a necessity. Hopefully, you will have found a stable job by now that offers health insurance. If not, the money you should have saved will help cover that. By the age of 26, you should have saved nearly $10,000 or your yearly salary.  

30 Years Old

At age 30, you should have saved the equivalent amount of your salary. If you're making $30,000 or $40,000, you should have saved that same amount. If you're short of your goals, remember to just keep it simple with at least a dollar a day. Even if you don't have the exact amount of how much you should have saved by every age, you can always start now! Saving even the smallest amounts will eventually add up and build interest. 

35 Years Old

By the age of 35, you should've saved at least twice the amount of your annual salary. Traditionally, this stage in your life is one of the most important ones for growth and knowing how much you should have saved by every age. If you have a family or own a house at this point, any money you have saved will help with your children's college fund or go towards your mortgage or any maintenance you may need.


40 Years Old

When you turn 40, you should have saved three times the amount of your yearly salary if you've saved a little by every age. With your family growing and having solidified your home life, saving money only becomes more important. Perhaps at age 40, you will have put some of your savings into the college fund for your children and started thinking about retirement.

45 Years Old

You should have saved about four or five times the amount of your salary at this point, getting ready to put your kids through college or maybe downsizing to another home. You should have all of your own college loans payed off by now and preparing for your own kids' college loans to help pay.

50 Years Old

By age 50, you should have saved six or seven times the amount of your salary and have your kids currently in college. While this sounds like a lot of money, it doesn't seem so bad if you've saved by every age. This may be the time you downsize with your kids out of the house. In addition to any profit you make from selling your house, your savings will only increase and can be used for another home. 

60 Years Old

At age 60, you should be close to retiring and accumulating funds for your retirement accounts. Your kids should be out of college at this point and be living on their own and starting their own careers. With retirement so close, it's important to know how much you should have saved by every age. Ultimately, you should have saved eight or nine times the amount of your salary. Hopefully your own kids will have learned the value of saving their money and will continue to do so as they get older.  

65 Years Old

By the time you're 65, you should be ready to retire if you haven't already. Because you won't be receiving a steady income, it's important to have a retirement savings. If you haven't saved as much money as you should've, it will be very difficult to make a living without relying solely on your pension. You should have saved at least ten times the amount of your most recent salary. When you're 18 years old, you're obviously not thinking about retirement. But when you know how much you should have saved by every age and understand the importance of saving money, it will benefit both your immediate funds and retirement funds. 

Now Reading
How Much You Should Have Saved by Every Age
Read Next
Tips for Trading Penny Stocks