How Much Should You Have Saved by Age 25?
Target: 0.5x your annual salary ($32,500 on $65,000 income)
Quick Answer
By age 25, financial experts recommend having 0.5x your annual salary saved for retirement. On a median salary of $65,000, that is $32,500. The actual US median at this age is $12,000 — meaning most Americans are about 63% behind the target.
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Catch-Up Strategy for Age 25
You are early in your career. Focus on building the savings habit and maximizing employer match. Even $200/month invested now can grow to over $500,000 by retirement thanks to compound interest.
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Frequently Asked Questions
How much should I have saved for retirement by age 25?
By age 25, financial experts recommend having 0.5x your annual salary saved. For someone earning the median income of $65,000, that is approximately $32,500.
What is the average retirement savings at age 25?
The median retirement savings for Americans around age 25 is approximately $12,000. However, this is significantly below the recommended target of $32,500 (0.5x salary).
How can I catch up on retirement savings at 25?
You are early in your career. Focus on building the savings habit and maximizing employer match. Even $200/month invested now can grow to over $500,000 by retirement thanks to compound interest.
How much should I save monthly at age 25?
To reach the recommended 10x salary ($650,000) by age 65, starting from the median savings of $12,000, you would need to save approximately $173/month assuming a 7% annual return.