Am I on Track for Retirement? 3 Checks by Age and Income
Short answer: to see whether you are on track for retirement, run three checks. First, compare your savings with a widely quoted benchmark of 1 times salary by 30, 3 times by 40, 6 times by 50, 8 times by 60 and 10 times by 67. Second, project your current savings forward to see the gap. Third, compare your target with about 25 times your yearly spending. A 45-year-old earning $80,000 with $90,000 saved may need about $642 a month to close the gap.
Key takeaways
- Benchmarks are rough guides, based on saving around 15% from the mid-20s and replacing about 80% of pay.
- Being behind the benchmark is common, and what matters is the monthly amount that closes the gap.
- A projection depends on its assumptions. The examples here use a steady 7% return, which is not guaranteed.
- Social Security, pensions and home equity are extra. Count them separately.
Check 1: how do your savings compare with the benchmark?
Divide your retirement savings by your annual pay to get your multiple. The widely quoted age benchmarks and the dollar targets they imply:
| Age | Multiple of salary | On $50,000 | On $80,000 | On $120,000 |
|---|---|---|---|---|
| 30 | 1× | $50,000 | $80,000 | $120,000 |
| 40 | 3× | $150,000 | $240,000 | $360,000 |
| 50 | 6× | $300,000 | $480,000 | $720,000 |
| 60 | 8× | $400,000 | $640,000 | $960,000 |
| 67 | 10× | $500,000 | $800,000 | $1,200,000 |
A 45-year-old on $80,000 with $90,000 saved has a multiple of 1.1×, below the roughly 3× to 6× range for their age. That sounds alarming, but the benchmark does not say what the gap costs to close, which is the next check.
Check 2: what does your current savings grow to?
Project your balance to retirement age and compare it with the target. For the example (age 45, retiring at 67, $90,000 saved, $80,000 salary, target 10× which is $800,000) at an assumed steady 7%:
| Step | Amount |
|---|---|
| Savings today | $90,000 |
| Grows over 22 years to | $398,736 |
| Target at 67 (10× salary) | $800,000 |
| Gap | $401,264 |
| Monthly saving to close the gap | $642 |
| As a share of gross pay ($6,667 a month) | 9.6% |
So the answer is not "you are far behind" but "you need about 9.6% of pay, on top of what you already have, if returns average 7% and pay stays level". With a lower return, a higher number is needed. See a good savings rate by age and how to start saving for retirement at 40 or later.
Check 3: what is your number based on spending?
A common rule of thumb is that you need about 25 times your yearly spending in retirement, which is the 4% rule in reverse. If you expect to spend $48,000 a year, 25 times is $1,200,000, and 4% of that is $48,000. Social Security or a pension lowers the amount you need to draw, so subtract it from your spending first. See whether the 4% rule works and how to calculate your real retirement number.
| Yearly spending in retirement | 25 times |
|---|---|
| $36,000 | $900,000 |
| $48,000 | $1,200,000 |
| $60,000 | $1,500,000 |
How much do the assumptions matter?
A lot. The same 45-year-old with $90,000 saved needs about $642 a month at an assumed 7% return, but about $1,120 a month at 5%: the savings grow to $263,273 instead of $398,736, leaving a gap of $536,727. Pay raises, a longer career, Social Security and spending below the target all help, while lower returns, higher inflation and early retirement hurt. Rerun the numbers with a cautious return as well as a hopeful one, and plan around the cautious case.
What do you do if you are behind?
- Capture any employer match. It is free money. See what a 401(k) is.
- Raise your rate by a point or two each year, or with every raise.
- Use the catch-up limits from age 50. See Roth IRA vs 401(k) for 2026 limits.
- Work a little longer or delay Social Security. Each year adds savings, shortens the drawdown and raises the benefit.
- Lower the target by planning for lower spending, a smaller home or part-time work.
- Run your own numbers. Try the free Goal check for a retirement amount and date.
Sources and further reading: SEC Investor.gov has a free retirement planning calculator, and the IRS lists current contribution limits.
General education, not financial or investment advice. Reviewed October 2026. Benchmarks are rules of thumb, and projections assume a constant 7% annual return with level pay, which is an illustration only and not guaranteed. Investing involves risk, including loss of principal.
Frequently asked questions
How do I know if I am on track for retirement?
Compare your savings with age benchmarks (about 1 times salary at 30, 3 at 40, 6 at 50, 8 at 60 and 10 at 67), project your savings forward, and compare your target with about 25 times your yearly spending.
How much should I have saved for retirement by age 45?
Benchmarks put it between 3 times salary at 40 and 6 times at 50, so about 4 to 5 times at 45. If you are below, the useful number is the monthly amount that closes the gap, such as about $642 in the example.
Is the 10 times salary rule realistic?
It is a rough guide that assumes you save about 15% from your mid-20s and want to replace around 80% of pay. Your own number depends on your spending, Social Security, pensions and retirement age.
What if I am behind on retirement savings?
Start with the employer match, raise your savings rate by a point or two each year, use catch-up limits from age 50, and consider working a little longer. A late start is fixable with a higher rate.
How much do I need to retire?
A common rule of thumb is 25 times your yearly spending, less any Social Security or pension. For $48,000 of spending that is $1,200,000. Treat it as a starting estimate, not a promise.