“Am I on track for retirement?” is one of the most common questions we hear and one of the most anxiety-producing, because most people genuinely don’t know the answer.The honest truth is that there’s no single number that applies to everyone. Retirement readiness depends on when you want to retire, what your lifestyle will cost, what other income sources you’ll have (Social Security, pension, rental income), and dozens of other variables.That said, benchmarks are useful. They give you a reference point. They help you understand whether you’re roughly on track or whether there’s a gap that needs attention.Here’s a breakdown of widely used retirement savings benchmarks by age along with honest context for what they mean and what to do if you’re behind.
Building the habit — consistency matters more than amount
35
2× your salary
$160,000
Compound interest begins to contribute meaningfully
40
3× your salary
$240,000
Mid-career check-in — gaps become more costly to close
45
4× your salary
$320,000
Acceleration phase — often peak earning years
50
6× your salary
$480,000
Catch-up contributions available — use them
55
7× your salary
$560,000
10-year runway — retirement is coming into focus
60
8× your salary
$640,000
Final adjustments — sequence of returns risk matters now
67
10× your salary
$800,000
Traditional Social Security full retirement age
What If You’re Behind? The Honest Answer
Most people feel behind when they look at these numbers for the first time. That’s normal and it’s rarely as catastrophic as it feels.A few things worth knowing:
Compound interest does most of its work late. A 45-year-old who has $200,000 saved has more ability to catch up than they think especially if they maximise contributions in peak earning years.
Social Security will provide meaningful income. The average Social Security benefit in 2025 is approximately $1,900/month. Over 20 years of retirement, that’s over $450,000 of income not reflected in these savings targets.
Catch-up contributions exist for a reason. If you’re 50 or older, you can contribute an extra $1,000/year to an IRA and an extra $7,500/year to a 401(k). Use them.
Lifestyle flexibility is the most powerful lever. A plan where you spend $60,000/year in retirement requires dramatically less savings than one where you spend $120,000/year.
About the AuthorSalvador Perez, CFP® is the founder and CEO of Totem Wealth Management in Charlotte, NC. Sal graduated from Winthrop University’s Financial Planning Program in 2018 with a Bachelor’s degree in Finance and holds his Certified Financial Planner® certification. He specialises in retirement planning, investment management, and comprehensive wealth strategies for individuals and families across North Carolina.
Frequently Asked Questions
How much should I have saved for retirement at 40?
A widely used benchmark suggests having approximately 3× your annual salary saved by age 40. For example, if you earn $80,000 per year, a target of $240,000 in retirement accounts is a reasonable milestone. However, this depends heavily on when you plan to retire and what your lifestyle will cost.
What if I'm behind on retirement savings?
Being behind on retirement savings is common and manageable, particularly before age 55. The most effective strategies are: maximising contributions to 401(k) and IRA accounts, using catch-up contributions (available at 50+), reducing planned retirement spending, or adjusting your target retirement age. A personalised retirement projection with a CFP® advisor is the clearest way to understand exactly what you need to do.
How much should I save per month for retirement?
General guidance suggests saving 10–15% of your gross income for retirement, including any employer match. Earlier starters can save less; those starting later in their career may need to save 20% or more to achieve the same outcome. The exact amount depends on your age, current savings, expected Social Security income, and target retirement lifestyle.
Does North Carolina offer any retirement income tax benefits?
North Carolina taxes most retirement income including Traditional IRA and 401(k) withdrawals at the state’s flat income tax rate. However, military retirement pay is exempt. There is no additional retirement income deduction for most retirees, which makes proactive tax planning — particularly Roth conversions and tax-loss harvesting — especially valuable for North Carolina residents.
