How Much Should You Have Saved by 40? 3 Numbers to Check

By 40, Fidelity suggests having at least three times your annual salary for retirement. If you earn $70,000, that’s $210,000.

That target assumes you started saving 15% of your pay at 25, so treat it as a guideline. It also leaves out the money you can actually reach. Someone with $200,000 in a 401(k) and $300 in checking is one car repair away from a credit card balance.

For a total gut check on how you’re doing financially, pay attention to three numbers as you approach 40: your retirement savings, your emergency fund, and your net worth.

How much should you have saved by 40?

There’s no single dollar amount everyone should have saved by 40. But these three benchmarks can help you gauge where you stand.

Retirement savings benchmark: Three times your salary

You should have at least three times your annual salary saved by age 40, according to a popular Fidelity benchmark. That’s $180,000 if you earn $60,000 or $300,000 if you earn $100,000.

That target is built on a few assumptions: you started saving at 25, you’ve put away 15% of your pay every year since (including your employer’s match), you’ve kept more than half of it in stocks, and you plan to retire at 67. If you started later or took a break along the way, the same goal takes a higher savings rate, so it’s a guideline only.

Emergency savings benchmark: Three to six months of expenses

A common guideline is three to six months of essential expenses in a high-yield savings account for emergencies. So if you spend $3,500 monthly on necessities, your target would be $10,500 to $21,000.

No matter how much you save for retirement, life will happen. An unexpected car repair, an emergency room bill, a surprise vet visit, a home insurance deductible… An emergency fund helps you cover these without taking on additional debt.

Net worth benchmark: about $155,600

Your net worth is everything you own minus everything you owe. It includes all your assets (like your savings, retirement accounts, and home equity), minus all your debts (like student loans, car loans, and credit cards).

Families headed by someone ages 35 to 44 had a median net worth of $155,600 in 2025, according to the Federal Reserve’s Survey of Consumer Finances. The average for the same group was $681,900. That’s more than four times the median, because a small number of very wealthy households push the average up. That’s why the median is the better number to compare yourself with.

For example, say you have $50,000 in your 401(k), $30,000 in a Roth IRA, $15,000 in a savings account, and $100,000 in home equity, but you owe $30,000 on a car loan. Your net worth would be $165,000, a little above the median for your age group.

Why falling behind is common

It’s easy to look at savings benchmarks and wonder how anyone manages to hit them, especially in today’s economy, where gas prices, groceries, rent, and mortgage payments are on the rise.

But your life is uniquely yours and can’t be judged against a benchmark. You may have spent your 20s paying off student loans, your 30s raising kids, or a few years recovering financially from a layoff or medical emergency. Everyone has different starting points and privileges, and that’s normal.

Fidelity’s own math shows that starting at 30 with nothing saved raises the savings target from 15% to 18% a year.

How to catch up on savings if you’re behind

If your savings aren’t where you’d like them to be at 40, start by looking for ways to free up money and make saving more consistent. Here are four tips to try:

1. Automate your savings contributions

Money left in checking tends to get spent before it’s saved. Deploy the old adage “pay yourself first” and set up automatic transfers for each paycheck.

For instance, you could have 5% of every paycheck routed straight to your savings account. Start where you can and increase it incrementally as you get a raise, pay off debt, or lower expenses.

2. Take advantage of employer matches and tax-advantaged accounts

If your employer offers a 401(k) match, check whether you’re contributing enough to receive the full amount.

For example, if you earn $60,000 and your employer matches contributions dollar for dollar up to 4% of your salary, contributing $2,400 annually could earn you another $2,400 from your employer.

You can also explore traditional and Roth IRAs for additional retirement savings. And if you’re eligible for a health savings account (HSA), it can help you set aside money for qualified medical expenses with tax advantages.

Choosing between a traditional and Roth account, and how to invest inside them, depends on your taxes and timeline. Many 401(k) plans include access to a financial advisor at no extra cost, so check with your plan first.

3. Reduce high-interest debt

U.S. households have a combined $1.26 trillion in credit card balances, according to the Federal Reserve Bank of New York, with the average credit card balance at $6,659.

Carrying expensive debt can make it harder to save because so much of your money goes toward interest. Once you’re getting the full match and have a small cash buffer, put whatever you can spare toward the highest-rate balance first. Once that balance is gone, you can redirect the money you were paying toward savings, retirement, or other goals.

‍If the balances feel unmanageable, the National Foundation for Credit Counseling (NFCC) can connect you with free or low-cost debt counseling at 800-388-2227.

4. Cut expenses strategically

You don’t need to give up every restaurant meal or hobby to save more. But you should comb through expenses and cut any you wouldn’t particularly miss.

For example, maybe you’re paying $80 a month for a gym membership you used to use all the time but haven’t touched in three months. Or, maybe your internet provider has a cheaper plan that still provides you with enough speed to play games and get your work done.

Cutting $100 from your monthly expenses gives you another $1,200 a year to save. The trick is to transfer that money into savings instead of letting it disappear into everyday spending.

Read more >> How to Save for Retirement

How your credit score affects your ability to save

Lenders often use credit scores to help determine your interest rates on loans. If you have stronger credit, you could qualify for a lower rate on a car loan or mortgage, which could mean smaller monthly payments.

In this way, building credit won’t directly put money into your savings account. But if it gives you more affordable borrowing opportunities, it could play a huge hand in your ability to save money in your 40s.

Three habits do most of the work:

1. Pay your bills on time. A payment that’s 30 or more days late can be reported to the credit bureaus and stay on your report for up to seven years, so setting up autopay for at least the minimum is a simple safeguard.
2. Keep your credit card balances low. Your credit utilization, or how much of your available credit you’re using, is one of the factors scoring models weigh most. Paying down a balance before your statement closes can help, since that’s often the balance your issuer reports.
3. Check your credit reports for errors. You can get free reports from Equifax, Experian, and TransUnion every week at AnnualCreditReport.com, and disputing an error with the bureau reporting it is free.

If you find an account you don’t recognize or a payment marked late that wasn’t, Kikoff’s AI Credit Disputes can help you draft the dispute.

Bottom line

Three times your salary in retirement savings, three to six months of essentials in cash, and a net worth near the middle for your age are guidelines, not rules. If you’re short on one, start with whatever costs you the most to ignore. That’s often increasing your 401(k) contributions or tackling an expensive credit card balance.

Your credit decides more than whether you’re approved for a car loan or mortgage. It also sets the rate, and that rate applies to every dollar you borrow, for the life of the loan. Kikoff’s Credit Account reports your on-time payments to Equifax, Experian, and TransUnion, with no credit check to sign up. Plans start at $5 a month.