How Much You Should Have in Your Savings Accounts, Based On Your Age
Written by
Vance Cariaga
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Saving money should be a lifelong process that evolves as you get older. The amount you should save depends on many different factors, including your income, financial goals, location and family status. There are numerous guidelines on how much to save by age group, and none are exactly the same.
The important thing is to start saving money as early as you can and continue well into your pre-retirement years. Starting young allows you to build an emergency fund to cover at least three to six months’ worth of expenses. An early start also lets you benefit from the compounding effect of earning interest on top of the interest you’ve already earned.
It’s equally important to maintain the savings habit throughout every stage of your life to help you buy a home, start a family, fund your kids’ education, finance your preferred lifestyle and build a nest egg for retirement.
No matter your age, one of the most important things you can do for your savings goals is to ensure you’re using a high-yield savings account. Forbright Bank, for example, offers an annual percentage yield of on its Growth Savings account — that’s more than 11 times the national average2.
Here’s a look at some savings goals based on your age:
Savings Goals by Age 35
Experts at Fidelity recommend having one times your annual salary saved up by age 30 and two times your salary by age 35. The median weekly earnings for full-time workers ages 25 to 34 were $1,056 a week during the 2024 first quarter, according to the U.S. Bureau of Labor Statistics. That translates into $54,912 a year. If you earn the median, then you should have nearly $110,000 saved up by age 35, according to Fidelity.
By that measure, many Americans are falling way behind. According to 2022 data from the Federal Reserve, the average American has $20,540 saved up by age 34.
Savings Goals by Age 45
When you reach the 35 to 45 age range, you are probably well settled into adulthood and might have already acquired a home and started a family. Savings goals during this period of life typically focus on saving for a first or second home, starting a college fund for your kids and building your nest egg.
Income tends to go up between the ages of 35 and 44, with median earnings of $1,233 a week or $64,116 a year. Fidelity recommends saving four times your salary by age 45. If you are making the median wage, that means you should have just more than $256,000 saved up.
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Again, that’s well above the average savings during this age range. According to the Fed, the average American’s savings is $41,540 by age 44.
Savings Goals by Age 55
When you reach your mid-50s, retirement is no longer an abstract concept decades in the future but something you will need to consider in only a few more years. Saving money at this age is more important than ever.
This is also the age when you hit your peak earning years, which means you have the opportunity to build savings faster. According to Fidelity, you should have six times your salary saved up by age 50 and seven times your salary saved up by age 55.
Median earnings for full-time workers between the ages of 45 and 54 years old are $1,303 a week or $67,756 a year. Based on that income, you should have $406,536 saved up by age 50 and $474,292 saved up by age 55. Most people in this age group are nowhere close to that, with average savings of $71,130 at age 54, according to the Fed.
Savings Goals by Age 65
According to the Fed, the average American’s savings by age 64 are $72,520. This means many Americans are not adding much more to their savings after age 55. According to the BLS, the median earnings for full-time workers ages 55 to 64 are $1,254 a week or $65,208 a year.
Fidelity recommends having eight times your salary saved by age 60 and 10 times your salary saved by age 67. When you reach age 64, a good number to shoot for is nine times your salary. Based on median earnings, you should have about $587,000 saved up by age 64.
Bottom Line
It’s important to make sure your money is working for you. A high-yield savings account should be part of any savings plan. With the Growth Savings Account by Forbright Bank, you’ll earn APY on your savings.
Plus, there are no fees or monthly charges with the account, and deposits are protected up to $250,000 at the FDIC-insured bank per depositor, per ownership category.
Putting your money in a high-yield savings account ensures your savings will grow 11 times faster than the national average. It’s easy to apply for an account and start earning APY now1.
1While the rates and APYs mentioned above are accurate at the time of publication, they’re subject to change at any time and may have changed or may no longer be available. At Forbright Bank, rates and APYs are subject to change at any time, even after account opening. Growth Savings is available only online at Forbright Bank.
2National average for savings accounts published on FDIC’s National Rates and Rate Caps, accurate as of May 20, 2024.
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