Planning for a financially secure retirement is a long-term endeavor, often with an unclear final goal — especially for those just beginning their careers. At that stage, retirement may seem distant, and factors like career earnings, investment returns and post-retirement expenses can feel abstract. A common guideline suggests that by age 30, individuals should have roughly one year’s salary saved in a 401(k) or other retirement account. However, personal circumstances may warrant different targets. If you’re wondering “How much should I have in my 401k at 30?” and need assistance with retirement planning, consider working with a financial advisor.

401(k)s – The Basics

One of the most common retirement savings vehicles is a 401(k) plan.  These plans offer tax advantages and flexibility when it comes to investment choices. Employees contribute to these plans through payroll deductions. And many employers will match savers’ contributions. Combined with tax-deferred investment gains, these features allow 401(k) owners to build sizable balances over time.

Whether a given balance will be adequate depends on a number of factors, including your age at retirement, annual income, local cost of living, healthcare needs and projected expenses in retirement. To find out more about how a 401(k) can perform over time, you can use the SmartAsset 401(k) calculator.

How Much Does the Average 30-Year-Old Save?

One way to look at how much a 30-year-old should have saved for retirement is to look at real-world averages. Vanguard reported that in 2024 the average 25- to 34-year-old had $37,557 in a 401(k). The median account balance was $14,933.

Vanguard drew its data from 4.7 million people working in a wide range of industries and participating in retirement saving plans that are part of its recordkeeping business. While these workers may not be representative of all people, a 30-year-old retirement saver with $37,000 or so in a retirement plan can at least be assured of being close to many others at the same stage in their careers.

Retirement Savings Benchmarks

One widely cited benchmark states that by age 30, you should have saved approximately the same amount as your annual salary. According to the Bureau of Labor Statistics, the average American aged 25 to 34 earned $57,356 in 2024. With that in mind, the typical 30-year-old should have about $50,000 in a retirement savings account such as a 401(k).

J.P. Morgan takes a somewhat more granular approach with its analysis of retirement savings checkpoints. It cross-indexes age with household income and gives a recommended percentage of annual income. Using this technique, a 30-year-old earning $100,000 per year should have 80% of annual earnings, or $80,000, put away for retirement. As income climbs, so does the recommended saving percentage. J.P. Morgan’s model assumes a worker would save 10% of their total salary and get a 5.75% annual return on investments before retiring.

A 30-year-old earning $125,000 would ideally have 100% of annual earnings, or $125,000, in a 401(k) or similar. At the top end, a $300,000 earner should have 2.1 times, or $630,000, in retirement savings at age 30.

T. Rowe Price has a significantly less aggressive savings goal in its recommendations. The company says a 30-year-old should have approximately half of his or her annual gross earnings tucked away for retirement at that age. For its benchmark, T. Rowe Price used a couple earning $150,000 or a single person earning $75,000. Its recommendations represent a mid-point, meaning some savers may be well-served by saving more while some could need additional savings.

Additional Retirement Saving Insights

Although recommended retirement account balances vary widely, financial planners generally agree on saving a consistent percentage of annual earnings. Most experts suggest setting aside 10% to 15% of one’s salary for retirement.

While investment management firms may advocate for higher savings rates to align with their business models, it is possible to save too much for retirement. Tax-advantaged accounts like 401(k) plans are designed for long-term growth and should not replace short-term savings or emergency funds.

These accounts often impose penalties for early withdrawals. For example, 401(k) participants who withdraw funds before reaching age 59½ typically face a 10% penalty.

Recent data also suggests that many people may be over-estimating how much retirement costs. According to BlackRock, research shows most retirees retain 80% of their pre-retirement assets even 20 years after retiring. In this case, rather than advocating for saving less, the company suggests that retirees could look into spending more of their nest eggs after leaving the workforce. However, BlackRock did note that longer lifespans, fewer corporate pensions, expectations of lower investment returns and the potential for reduced Social Security benefits underscore the importance of retirement planning.

Bottom Line

Age 30 is the first milestone many planners use for evaluating financial readiness to retire. One benchmark suggests workers have saved a year’s salary in a 401(k) or other tax-advantaged retirement account by that age. Other recommendations range from six months’ worth of salary to more than twice your annual earnings, depending on the source, the worker’s income and other factors.

Tips on Saving for Retirement

• A financial advisor can help you evaluate your needs and resources when planning for a secure retirement. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Social Security is a major part of retirement financial security for most retirees. You can estimate how much your monthly benefit will be by using the SmartAsset Social Security calculator.

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