Knowing how much you should have saved at different ages can guide your financial goals and help you stay on track to a secure future. While everyone’s situation varies, having clear benchmarks can motivate you to save more strategically.
In Your 20s
- Aim to have saved the equivalent of one year’s salary by age 30.
- Focus on building an emergency fund covering 3-6 months of essential expenses.
- Start pension contributions early to benefit from compounding growth.
In Your 30s
- Ideally, you should have saved about 2 times your annual salary by now.
- Increase your pension contributions if possible, especially if you’re starting a family or buying a home.
- Keep growing your emergency fund alongside savings for goals like a house deposit.
In Your 40s
- Around 4 times your yearly salary is a good target for savings at this stage.
- Review your retirement plans and investment growth. Consider speaking with a financial advisor.
- Balance saving for retirement with other priorities like schooling or paying down debts.
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In Your 50s
- Aim to have 6-7 times your salary saved as retirement approaches.
- Maximise pension contributions while considering pension withdrawal options and tax implications.
- Plan for healthcare costs and lifestyle changes after retirement.
In Your 60s and Beyond
- Have a clear retirement income plan including pensions, savings, and investments.
- Work with advisers to manage withdrawals sustainably to ensure your savings last.
- Consider downsizing or other income-boosting strategies if needed.
