Savings by Age: How Much to Save in Your 20s, 30s, 40s & Beyond | Ally (2024)

No matter what stage of life you're in, one thing will always remain the same: It's never too late — or too early — to save money.

If you're wondering, “How much should I have saved?" now is the time to flip your mindset. Think, “How much could I save?" Read on to see what your savings today can turn into down the road.

There isn't a one-size-fits-all number. It's important that your savings and goals connect to your lifestyle.

Being specific about savings goals will give you a framework for how much you need and how long it could take you to get there. Smart savings tools like buckets let you easily set goals, organize your savings and keep track of your priorities.

One way to hit your savings goal is to think of it as a portion of your income. The popular 50/30/20 budget framework dictates that 20 percent of your budget should go toward savings and debt repayment, while the 50 percent should go to needs and 30 percent to wants.

Here's what it looks like based on the average salaries of full-time and salaried workers across different age groups:

By looking at your retirement savings in 10-year increments and using age-based benchmarks, it's easier to plan financially and put actionable savings steps in place.

One popular age-based savings recommendation for retirement is that you should aim to save the total amount of annual salary by age 30 and increase your savings by your annual salary every five years:

Dedicating 5% to 15% of your pre-tax income to retirement isn't always possible. You may be starting a new career, paying back student loans, or have other financial obligations and aren't able to save that much of your salary all at once. Start with a percentage you're comfortable with and increase your savings rate gradually by 1% each year until you reach the 15% mark.

If you're currently paying back loans or other debts, don't panic. Aim to save for retirement while paying off debt simultaneously , putting away what you can while sticking to your loan repayment schedule.

The ideal size of your emergency fund will likely fluctuate throughout your life based on your monthly expenses. Rule of thumb? Aim to have three to six months' worth of expenses set aside.

To figure out how much you should have saved for emergencies, simply multiply the amount of money you spend each month on expenses by either three or six months to get your target goal amount. We've mapped out what that would look like based on national averages in the table below.

We know this can feel impossible, especially if you're just starting out. And the national averages shown above may not resonate with your lifestyle. These numbers are just a benchmark, and you don't have to build your savings overnight. Focus on consistently putting away what you can afford.

Tip: Track your spending to see how much you actually need on a monthly basis. Then plug your numbers into our emergency savings account calculator .

Prioritizing goals and staying organized can keep you from stressing over not saving enough for all the things you want to do with your money. When you have a plan for saving for multiple goals , it reduces the chance that something slips through the cracks.

The buckets tool in the Ally Bank Savings Account helps you organize your savings into separate digital categories and set specific goals for each, eliminating the need to open multiple savings accounts to track your progress.

To make your savings go even smoother, consider putting it on autopilot with recurring transfers. This allows you to automatically add money into your respective savings accounts, or by using the Surprise Savings booster in the Ally Bank Savings Account , you can ease some of the stress of reaching your goals.

Finally, remember that when you're saving money, every little bit you don't spend counts. Uncover savings opportunities by finding the budgeting style that works for you and using our easy-to-use budget templates .