If You've Saved This Much for Retirement by Age 35, You're Ahead of the Game

You've probably heard the advice to start saving for retirement as early as possible. Even a few dollars per paycheck in your 20s and 30s can set you up for a much easier path to retirement later in life. And while every person will have different retirement goals, determining where you stand compared to the average person in their mid-30s can tell you whether you need to press on the accelerator or if you can loosen your purse strings a little bit.

Are you a super-saver at 35?

The most recent data available on average retirement account balances comes from the Federal Reserve's Survey of Consumer Finances. The Fed conducts the survey every three years, recording every detail you can think of about a person's finances. It won't publish the results of the 2025 survey until later this year, so we'll have to rely on the 2022 data for now.

The median retirement balance for a household with the head of household between the ages of 18 and 34 was $18,880 that year. If you look at households with a head of household between 35 and 44, the median balance jumped to $45,000.

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The market has performed exceptionally well since 2022, so median balances will likely be higher for many in those age ranges when the Fed publishes its 2025 results later this year. But if you have retirement savings totaling $45,000 or more at age 35, you're very likely in the top 50% of retirement savers for your age. Remember, investments compound exponentially, so a 45-year-old likely has significantly more savings than a 35-year-old.

But that doesn't mean you're on course for an easy retirement. A good rule of thumb is that you want to have saved twice your annual salary for retirement by the time you reach 35. The median worker between the ages of 35 and 44 brings in nearly $75,000 per year, according to data from the Bureau of Labor Statistics. That means you should aim for about $150,000 in retirement savings at age 35.

What should you do if you're behind on retirement savings?

If you're a below-average retirement saver, don't fret. At 35, there's still a long way to go until retirement. That means you can easily catch up and surpass your peers.

The key is to develop a consistent savings habit. That could mean increasing your 401(k) deferrals if your employer offers a retirement plan and ensuring you get the company match. Otherwise, contributing money to an IRA each month is a great alternative.

Sticking to low-cost index funds is the simplest path to growing your retirement savings. Importantly, you don't need to take on additional risk by investing in speculative assets to try to catch up with your peers. Simplicity and consistency will do most of the work for you.

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