35 and Clueless About Retirement Savings? Here’s How Much You Should Have Stashed

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Saving money for retirement is a cornerstone financial habit that can make life easier when you no longer want to work. Even if you want to work for the rest of your life, having a robust nest egg can give you extra financial security in the event you can no longer physically work in the future or end up with expensive medical bills.

If you are 35 years old, you still have multiple decades ahead of you in which you can save and invest your money. You might already be ahead of your peers, and if you aren’t, now is a good opportunity to catch up and get your finances on the right track. 

This guide will unveil how much you should have stashed away at 35 and different strategies you can use to outperform the average saver.

How Much Should You Have Saved Before Turning 35

Melanie Musson is an insurance and finance expert at Clearsurance. She believes the amount you should have saved before turning 35 depends on your annual salary. You can use that number to calculate how much you should have.

“At the very least, you should have as much saved in a retirement account as your annual salary. So, if you earn $75,000 a year, you should have $75,000 in your retirement account. Additionally, you should have an emergency fund of approximately $10,000,” Musson said.

Jacob Fuller, a financial coach at Trysmartly, also recommends using your annual salary as a baseline. However, he presents a wider range in his analysis.

“By age 35, a general benchmark is to have saved about 1 to 1.5 times your annual salary. So if you’re earning $80,000, your total savings, including retirement accounts, emergency funds, and investment portfolio, should ideally be somewhere between $80,000 and $120,000,” said Fuller. “Now, this isn’t a hard rule; it’s a guideline. Your circumstances, career path, and life choices all play a role. The key is being intentional and making consistent progress toward long-term financial security.”

What To Do If You Are Under 35 Years Old

If you are in your 20s, you have more time to save money and adopt good financial habits that align your savings with the ranges that Musson and Fuller provide. Both financial experts laid out how people who are under 35 can reach their prescribed retirement savings goal.

“If you are 22 and want to meet a savings goal by the time you’re 35, you can simply contribute the yearly limit to an IRA every year. That will put you ahead of your goal. If you’re a high earner, you’ll need to do more than that to have equal to your annual income saved, but for the average person, contributing to an IRA will be all you need to do. If you’re 30 years old and haven’t saved anything yet for retirement, you can still reach your goal by 35. You will need to be disciplined,” Musson said.

Fuller provided a checklist that he goes through with all of his clients. These are the smart habits he instills into his clients:

• Prioritize saving early and often: Automating contributions to retirement accounts and high-yield savings makes it non-negotiable.
• Invest consistently: Start with your 401(k), especially if there’s an employer match, and branch out to IRAs or brokerage accounts when you can.
• Track spending and avoid lifestyle creep: Your income may rise in your 20s and 30s, but if your spending rises just as fast, you’ll stall progress.
• Build an emergency fund: Aim for 3-6 months of expenses to avoid derailing your long-term goals when life throws you a curveball.

Can You Catch Up If You’re Over 35 and Behind?

It’s possible to catch up if you have fallen behind on your retirement savings. Fuller suggests prioritizing income growth, saving 20%-30% of your income, reworking your budget, and assessing where you are financially.

“You may have some ground to make up, but you’re not out of options, and it’s never too late to take control of your money,” said Fuller. 

Musson encouraged people to reclaim their finances while prioritizing retirement account contributions.

“Start today. Don’t wait another day. Start with maximizing your IRA contributions. Then, if you have access to a 401(k), start contributing to that, as well. You can still catch up. By the time you’re 35, you’re likely to be settled into a house, and your income should still be increasing. Every time you get a raise, put the extra income toward retirement. Resist the urge to bump up your living expenses. Stick to your budget and save more,” Musson suggested.

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