How much money should a 40-year-old have saved?

A good rule of thumb is that a 40-year-old should have three times their annual income saved. But the ideal savings goal for you depends on a few factors, such as your income, retirement expectations, and personal situation.

Is $100,000 saved at 40 good?

A general rule of thumb is that a 40-year-old should have three times their annual income saved, which would be about $216,000 for the average American. However, $100,000 is more than the median retirement savings for the 35-44 age group, so someone with this amount of money in savings isn't necessarily in terrible shape.

Can I retire with $2 million at 40?

Whether you can retire comfortably with $2 million at 40 depends on your lifestyle and expected spending habits. A good rule of thumb is that you can safely withdraw 4% of your savings, so if you can live on $80,000 in annual income or less, you may be able to comfortably retire.

Can I retire with $1 million?

Whether you can retire with $1 million depends on a few factors, including your expected income needs in retirement, as well as other sources of income you have, such as Social Security. A good rule of thumb is that you can safely withdraw about 4% of your savings each year, so for $1 million to be enough, you'd need to be able to comfortably live on $40,000 per year from savings, plus any other income sources.

How Much Money Should I Have Saved by 40?

Saving for retirement milestones can be tough at any age

By Matthew Frankel, CFP – Updated Mar 6, 2026 at 2:26 PM EST | Fact-checked by Parker Hicks

Key Points

A common benchmark is three times your annual income saved by 40 -- roughly $216,000 for the average earner.
The reality: the median retirement account balance for the 35–44 age group is just $45,000, and only 67% of that group have a retirement account at all.
Nearly half of all working households are at risk of a retirement savings shortfall, making your 40s a critical window to course-correct.

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

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Negotiate your salary

You may think that if you can't save money, your problem is overspending. But that's not always the case. Sometimes the problem is that your income simply isn't enough to cover the bills and save enough for retirement.

By age 40, you've hopefully developed skills that make you valuable in the workplace. If you've been at your job for a long time, research your salary using sites such as Glassdoor and Payscale, along with U.S. Bureau of Labor Statistics data, to make sure you're being paid competitively. If your salary is on the low end, it may be time to make the case that you deserve a raise based on your accomplishments -- or to start searching for a new, better-paying position. If you're self-employed, it may be time to reassess your hourly or contract rates.

If you don't think that getting a pay raise or switching to a higher-paying job is feasible, then consider whether earning side income is a possibility. Collecting an extra $100 a week of income after taxes and investing that money could add nearly $300,000 to your savings over 20 years, assuming 10% annual investment returns.

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Be realistic about retirement planning

Retirement can seem like an abstract goal when you're in your 20s or 30s, but in your 40s, it may start to materialize on the not-so-distant horizon. This may create a new sense of urgency about saving money, which is a good thing.

Ensure you're setting realistic goals, especially if you're trying to catch up on saving. Don't plan on retiring early at age 50 or claiming Social Security as soon as you turn 62 if you're behind on your saving objectives. Most financial planners recommend replacing about 70% to 80% of your income when you retire, so keep this guideline in mind as you start to make retirement plans.

At age 40, you still have time to save for retirement, but you also don't have time to waste. Some short-term sacrifices now will pay off nicely in a couple of decades.

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Frequently Asked Questions

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. 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, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

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