Saving for retirement is essential, but knowing how much you should have saved at each stage of your life can be challenging. Here are some general guidelines to help you determine how much money you should have in your retirement account.

In Your 20s…

If you are in your 20s, you may be just starting your career. You may not make much money, but that does not mean you cannot start saving for retirement. It would be best if you aimed to have at least 10% of your salary saved by the time you are 30. So, if you make $30,000 per year, you would need to have $3,000 saved by the time you are 30 years old. The earlier you begin saving for retirement, the better off you will be. For example, if you start saving $3,000 per year at age 25, you will have $120,000 saved by the time you are 65, and with the proper retirement account, the interest and capital gain alone for that initial savings could turn it into closer to $1.2 million.

In Your 30s…

By reaching your 30s, you will likely make more money than in your 20s. It would be best if you aimed to have at least 25% of your salary saved by the time you are 40 years old. So, if you make $40,000 per year, you would need to have $10,000 saved by the time you are 40 years old. Start stocking away money now by the time we’re 65+years-old ($30k). This savings account would contain enough funds (and grow) with inflation adjustment every year just like a Certificate or I.R.A. does today – without additional fees.

In Your 40s…

In your 40s, you will likely be nearing the peak of your career with a family to take care of. Although you may feel pressure to pull back on your savings for retirement, you should still aim to have at least 50% of your salary saved by the time you are 50 years old. So, if you make $50,000 per year, you would need to have $25,000 saved by the time you are 50 years old to stay on track.

In Your 50s…

In your 50s, you may be considering retirement. It would help if you aimed to have at least 75% of your salary saved by the time you are 60 years old. So, if you make $60,000 per year, you would need to have $45,000 saved by the time you are 60 years old.

How much money you should have in your retirement account depends on various factors, including when you start saving, how much you save, and the rate of return on your investments. But, in general, these guidelines provide a good starting point.

If you are in your 20s or 30s, it is important to start saving for retirement as soon as possible. The more you save now, the more you will have saved by the time you reach retirement age. In your 40s and 50s, it is important to continue saving as much as possible to have a comfortable retirement.

Various retirement accounts are available, so research which account is best for you. Some accounts offer tax benefits, while others offer higher rates of return. Whatever account you choose, be sure to contribute as much as possible to ensure a comfortable retirement.

Regardless of where you are in life, it is never too late to start saving for retirement! Even if you only have a few dollars to spare each month, that money can add up over time. The most important thing is to start saving as early as possible and keep contributing regularly. By following these guidelines, you can ensure that you will have enough money saved to retire comfortably.