How Much Money Should I Have Saved by 40?

Saving for retirement milestones can be tough at any age

By Matthew Frankel, CFP – Updated Dec 9, 2025 at 10:10 PM

Key Points

By age 40, aim to have $216,000 saved based on average earnings of $72,020.
Increase your savings rate to compensate for lower savings and lost compound growth.
Negotiate higher income and build a six-month emergency reserve to boost savings.

A general rule of thumb is that you should have three times your annual income saved by the time you reach age 40. But there's more to the story than that.

The median weekly earnings of someone in the 35-44 age group is $1,385, according to the U.S. Bureau of Labor Statistics, as of the third quarter of 2025. This represents an annual income of $72,020. This means that the average 40-year-old American should have approximately $216,000 in savings.

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An infographic summarizing different ways to save money at age 40. — Image source: The Motley Fool

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Of course, there's no hard-and-fast number or rule that applies to everyone. A good savings goal depends not only on your salary, but also on your expenses and the amount of debt you're carrying.

If your savings balance is lacking, don't panic. You probably still have at least a couple of decades of working and investing to build your nest egg. But the sooner you take steps to get back on track, the easier it will be. It's essential to increase your savings rate, even if it requires some sacrifice.

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Savings Account

A savings account is an account that earns interest with a financial institution.

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

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