Am I On Track for Retirement? Six Strategies to Catch Up
It’s hard to know whether you’re “doing enough” for retirement—especially when life is busy and the goal is decades away. Retirement benchmarks can help you do a quick check-in: Are you roughly on pace, or do you need to adjust?
Two important notes before we dive in:
Benchmarks are guidelines, not grades. Your “right number” depends on your retirement age, lifestyle goals, pensions, health costs, and when you started saving.
Use benchmarks to start a conversation—not to panic. If you’re behind, there are practical ways to catch up.
Fidelity’s Retirement Savings Milestones
Fidelity’s rule of thumb suggests aiming for these savings multiples over time:
30: 1x salary
40: 3x salary
50: 6x salary
60: 8x salary
67: 10x salary
Key assumption behind the benchmark
Fidelity’s guideline commonly assumes saving about 15% of income per year (including employer match) over a full career, and that your portfolio will need to provide about 45% of pre-retirement income, with Social Security covering the rest.
Alternative: T. Rowe Price Milestones
T. Rowe Price offers another set of targets that tends to be a bit more aggressive later in the timeline:
AgeTarget Savings
45: 3x salary
50: 5x salary
55: 7x salary
60: 9x salary
65: 11x salary
How to Use These Benchmarks
Example:
Current age: 45
Current salary: $120,000
Fidelity checkpoint: 4x salary → $480,000
Include what’s intended for retirement, such as:
401(k), 403(b), TSP
Traditional/Roth IRA
Taxable brokerage (if earmarked for retirement)
(Optionally) HSA for retirement healthcare
Example total: $350,000
$350,000 ÷ $480,000 = 73% of target
That’s a bit behind, but not a “falling off a cliff” situation. A few focused changes can make a meaningful difference.
Reality Check: How Do You Compare to Others?
Benchmarks are targets. Averages are simply what people have.
One of the clearest datasets comes from Vanguard’s “How America Saves” reporting (as summarized by Bankrate).
Average and median 401(k) balances (end of 2024):
25–34: average $42,640, median $16,255
35–44: average $103,552, median $39,958
45–54: average $188,643, median $67,796
55–64: average $271,320, median $95,642
If you’re behind the benchmarks, you’re not alone. The better question is: What’s the best next move from here?
What If You’re Behind?
Don’t panic. Pick one or two levers that fit your life right now.
Strategy 1: Adding more retirement contributions (and know the 2026 limits)
For 2026, the IRS increased retirement contribution limits:
401(k)/403(b)/457/TSP employee limit: $24,500
Catch-up (age 50+): $8,000 → total up to $32,500
Higher catch-up (age 60–63): $11,250
IRA limit: $7,500
IRA catch-up (age 50+): $1,100 → total up to $8,600
And for HSAs (2026):
Self-only: $4,400
Family: $8,750
Catch-up (age 55+): $1,000
Strategy 2: Delay retirement by 3–5 years
Delaying retirement can help in multiple ways at once: more years to save, more years for growth, and fewer years your portfolio needs to fund.
It can also increase Social Security. Between full retirement age and 70, benefits can rise due to delayed retirement credits (often described as about 8% per year, depending on birth year).
Strategy 3: Reduce retirement expenses (the “25x rule” works both ways)
A simple framework is the rule of 25 (roughly equivalent to a 4% guideline):
Need $80,000/year → $2,000,000
Need $60,000/year → $1,500,000
That’s a $500,000 difference driven by spending.
Common levers:
Downsize home (lower taxes, insurance, maintenance)
Pay off high-interest debt before retiring
Consider relocating to a lower cost-of-living area
Re-think travel and vehicle costs
Strategy 4: Work part-time in early retirement
Even modest income can reduce portfolio withdrawals, improve sustainability, and help with healthcare timing. For some households, 15–25 hours/week for a few years can make the plan dramatically easier.
Strategy 5: Review your investment mix (without chasing returns)
The goal isn’t to “beat the market.” It’s to align your portfolio with:
your time horizon,
your withdrawal needs,
and your ability to stay invested during downturns.
A portfolio that’s too conservative too early may struggle to keep up with inflation; a portfolio that’s too aggressive may be hard to stick with emotionally.
Strategy 6: Increase income (often the fastest lever)
Savings rates rise quickly when income rises. Consider:
negotiating compensation,
switching roles,
building a consulting side income,
or optimizing small business retirement plan options.
A Better Way to Ask “Am I On Track?”
Benchmarks are a starting point. Whether you're 30 or 60, behind or ahead, a complete answer comes from three numbers:
Your retirement spending target
Your guaranteed income (Social Security, pension)
Your investable assets and savings rate
The best time to start retirement planning was 20 years ago.
The second best time is today. The path to retirement isn't about perfection—it's about progress.
Start where you are. Save what you can. Increase over time. Stay consistent.
You've got this.
Sources and Additional Resources
[^1]: Bankrate. "The rule of 25 for retirement: What it means and how to calculate it." https://www.bankrate.com/retirement/rule-of-25/
[^2]: Fidelity. "How do your retirement savings stack up?" https://www.fidelity.com/learning-center/personal-finance/average-retirement-savings
[^3]: T. Rowe Price. "Retirement savings by age: What to do with your portfolio in 2026." https://www.troweprice.com/en/us/insights/retirement-savings-by-age-what-to-do-with-your-portfolio
Disclaimer: This article is for educational purposes only and does not constitute financial, tax, or investment advice. Retirement planning is highly individual and depends on numerous personal factors including age, income, expenses, health, family situation, and risk tolerance. Historical investment returns are not guarantees of future performance. Social Security benefits and tax laws are subject to change. Before making significant financial decisions, consult with a qualified financial advisor, tax professional, or certified financial planner who can analyze your specific situation and provide personalized guidance.
