As you review your savings goals in 2026, it’s helpful to know where you stand. Pure’s Principal, Marc Horner, CFP®, outlines savings benchmarks by age to provide a clear perspective to help you stay on track with your retirement savings goals.
Transcript
By the time the ball drops on 2026, most people will be thousands of dollars behind where they need to be financially, but fear not. If you know what you’re shooting for, you have a much better chance of hitting that target.
Some of the numbers we are going to talk about today might surprise you, especially at the very end. Welcome to financial fitness benchmarks for 2026. Today, I will show you how much you should have saved by the end of 2026 for your age group, and some smart moves you can make before 2026 comes to a close.
But before you compare yours, remember, we’re in a judgment-free zone. If you’re behind, we’ll show you how to get started on fixes before we’re done. And if you’re ahead, congratulations, but you still need to stick with it. Drum roll, please…
Ages 20–29
In your 20s, your savings target should be somewhere between half and one times your annual salary. At this stage, the priority is building solid financial habits: starting an emergency fund, beginning retirement contributions, and avoiding high-interest debt.
If you’ve already got some, work on reducing it. Automate, automate, automate. It’s going to make it much easier to hit your goals. So, if you hit one times your income by age 30 saved, you’re ahead of most of your peers.
Ages 30–39
Now into your 30s, the savings target rations up to one and a half to three times your annual salary. If you started saving in your 20s, this is the decade where the power of compounding really starts to kick in.
Focus on upping those retirement plan contributions, continuing to build that emergency fund, and using debt wisely as cars and houses adn sometimes kids start to show up now.
Ages 40–49
In your 40s, now the savings target is three to six times your annual salary, and you’re officially in those peak earning years. Boom.
This is the time to continue to increase your retirement contributions, review those bank and credit card statements to reduce or eliminate spending leaks, and have some maturity in your investing strategy, or said another way, stop investing like a 20-year-old and start investing like an adult, no offense.
Ages 50–59
Your 50s – savings target is now six to nine times your annual salary. In this decade, your savings picture should start to dovetail with what your vision of retirement is shaping up to be.
That means taking advantage of catch-up contributions, mapping out retirement income sources, and testing those retirement spending assumptions. A great way to do that is to compare what you think you’re going to spend in retirement with what you’re actually spending today.
Ages 60 and Up
Age 60 and up, your savings target is now eight to eleven times your annual salary.
People talk about the “right number,” but that is really personal and depends on a variety of factors such as when you plan to retire, your spending plan, your income sources, etcetera, etcetera. But this is the final stretch. Stress test your finances to make your retirement a reality.
How to Know If You’re On Track
Now, how to know if you’re on track. If you didn’t like any of that information, let’s try this. How about three questions.
Am I saving enough? The benchmark for 2026 is saving 15% of your income.
Do I have three to six months of expenses saved? That’s going to protect you from setbacks like job loss, medical bills, and any unexpected life events that come our way.
And, am I investing consistently? Regular contributions matter way more than trying to time the market. Ups and downs are normal, sticking to your guts and guns, that’s what builds wealth.
What To Do If You’re Behind
If these benchmarks feel out of reach, do not panic. You have options.
Start with small contributions that are automated. Even 1% increases can add up.
Focus on high-impact wins, like reducing debt with double-digit interest rates. That’s got the double whammy of freeing up cash to help boost your savings power, plus adding flexibility with a few less bills to pay.
Take advantage of employer-sponsored plans. Don’t leave matching money on the table. I’ts free, take it.
Revisit your budget. Even small changes and subscriptions you forgot about, dining out, or impulse spending can unlock hundreds per month for savings. As an example, next time you’re out with your friends and you order a Bloody Mary, don’t order it with premium vodka!
Accumulating a million dollars by age 65 is totally attainable, but the longer you wait, the harder it gets. Do not make the mistake of wasting time.
Final Takeaway
Your 2026 savings benchmark isn’t a hard rule, just a roadmap. Whether you’re ahead, behind, or somewhere in the middle, the most important step is the next one you take. Start today, stay consistent, and you are well on your way to building the financial future you want.
Download our free 2026 financial data guide; it’s loaded with information to help get your year started right.
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IMPORTANT DISCLOSURES:
• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
• Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.
• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
CFP® – The CERTIFIED FINANCIAL PLANNER® certification is by the CFP Board of Standards, Inc. To attain the right to use the CFP® mark, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. 30 hours of continuing education is required every 2 years to maintain the certification.
