Are You Behind on Retirement Savings? How Much You Need at 50, 55, 60 and 65
Compare your balance against this Wall Street benchmark, tailored by age and income level, to see if you're truly ready for retirement.
When it comes to preparing for retirement, many people fear running out of money, yet most don't actually know how much they’ll need.
While figuring out the magic number can be difficult, it’s essential. Without a clear target, you risk a shortfall that could force a major lifestyle overhaul or an unexpected return to work.
Fortunately, there’s a way to see if you’re on track. JPMorgan developed a guide that illustrates how much you should have saved based on your age and income. It’s just a rule of thumb, but it can tell you whether you’re doing well, need to step it up or are at risk of a significant gap.
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The early to mid 50s
If you're in the 50 to 55 age range, now is the time to start thinking about the retirement you envision for yourself. Retirement might be 10, 15, or 20 years away, but between 50 and 55 is a good time to take stock of your retirement savings and make adjustments, if needed. Max out your contributions and take advantage of catch-up contributions, says Sharon Carson, executive director of J.P. Morgan Asset Management.
If you are already doing all that, don't slow down. If possible, increase your savings rate as much as you can. By upping the rate to 10% of your income, you can make up a lot of ground in a decade or more, Carson says.
It's a good time to get your debt under control. You don't want to enter retirement with high-interest debt that will eat away at your cash flow. It's also the time to start thinking about how you’ll pay for any long-term care needs in the future.
According to JPMorgan, you'll need this much, based on your age:
Household Income | Target Savings By Age 50 | Target Savings By Age 55 |
$80,000 | $355,000 | $450,000 |
$100,000 | $430,000 | $585,000 |
$150,000 | $615,000 | $840,000 |
$200,000 | $775,000 | $1.07 million. |
$250,000 | $980,000 | $1.35 million |
$300,000 | $1.29 million | $1.75 million |
Not matching up?
If you are facing a shortfall, the good news is that time is on your side. You still have time to save more in your early 50s and, if need be, work longer than you anticipated.
Even an extra year in the workforce will boost your income, and you'll spend one less year drawing down on your retirement savings.
Let's not forget the positive impact working longer has on Social Security benefits. If you're on the cusp of hitting your Full Retirement Age or FRA, which is typically around 67, depending on when you were born, delaying for six months, nine months, or a year will result in a 30% boost in your benefits. To read more about retirement planning in your early 50s, click here.
The mid to late 50s
Your mid to late 50s is retirement savings crunch time. You should at least think about what your retirement will look like. If you have a plan, refine it. If you don't, develop one, says Carson.
As you develop your plan, try to establish your ideal retirement age. Will you throw in the towel at 62 as soon as you can collect Social Security, wait until your full retirement age (67 for people born on or after 1960) to collect all your benefits, or hold off until 70 when you'll get 30% more in Social Security benefits?
If you are married, will you retire at the same time as your spouse? Do you plan to stop working entirely, work part-time, or transition to a new career? It's also a good time to assess your spending needs and determine how much you’ll need in retirement.
According to JPMorgan, you'll need this much, based on your age:
Household Income | Target Savings By Age 55 | Target Savings By Age 60 |
$80,000 | $450,000 | $550,000 |
$100,000 | $585,000 | $745,000 |
$150,000 | $840,000 | $1.07million |
$200,000 | $1.07million | $1.36 million |
$250,000 | $1.35 million | $1.72 million |
$300,000 | $1.75 million | $2.23 million |
Facing a shortfall?
Don't worry, you still have time to make moves to shore up your retirement nest egg. There are catch-up contributions that let people 50 and older save an additional $8,000 in their 401(k)s and $1,100 in their IRAs for 2026.
Don't invest aggressively in an attempt to catch up. You could end up losing money instead. Read more about retirement planning in your mid to late 50s, here.
The early to mid 60s
Your early to mid 60s is the time when you take the final steps to prepare for retirement. During the run-up to retirement, you should refine your financial plan, making sure it takes into account Medicare, something you probably weren’t worried about before. Medicare kicks in at 65, but Carson says it's something you should think about well in advance of that.
Estate planning should also be on your mind. Even if you don’t have a large estate you plan to bequeath to your heirs, it's important to make sure your will is updated. In addition to your will, Carson says it’s important to think about who will make your health decisions and take care of your finances if you become incapacitated.
According to JPMorgan, you'll need this much, based on your age:
Household Income | Target Savings By Age 60 | Target Savings By Age 65 |
$80,000 | $550,000 | $650,000 |
$100,000 | $745,000 | $925,000 |
$150,000 | $1.07 million | $1.34 million |
$200,000 | $1.36 million | $1.71 million |
$250,000 | $1.72 million | $2.15 million |
$300,000 | $2.25 million | $2.78 million |
Feeling behind in your retirement savings?
If you are facing a retirement shortfall or are overwhelmed by your checklist, don’t let paralysis set in. The last thing you want to do is bury your head in the sand and hope it goes away.
If your savings need a boost, you can always work longer, save more in your retirement savings account, or plan to work when you do retire. Downsizing or curbing your budget may be all it takes.
And remember, JPMorgan’s guide is exactly that — a guide. You may be able to make it work with a lot less than what you are supposed to have saved by 60 or 65. Read more about retirement planning in your mid 60s here.
Everyone is different
Saving for retirement is not an exact science. Everyone has different needs, but the JPMorgan guide can give you an idea of where you should be.
The good news is that whether you are 50 or 65, there are moves you can make to set yourself up for the retirement you envisioned.
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