Fidelity’s guideline puts an on-track 40-year-old at about 3× salary (an official Fidelity milestone) — about $225,000 on a $75,000 income. In reality the median 401(k) balance for ages 35–44 is $46,919 and the average is $120,742 (Vanguard, 2026), so most people your age are below the benchmark.
Retirement savings by age: the benchmark at 40
The most widely quoted rule of thumb comes from Fidelity: save 1× your salary by 30, 3× by 40, 6× by 50, 8× by 60 and 10× by 67. It assumes you save 15% of income every year from age 25 (employer match included), invest more than half in stocks, retire at 67 and need savings to replace about 45% of pre-retirement income, with Social Security covering much of the rest.
Fidelity salary multiples by age; the gold dot is age 40. Points between named milestones are straight-line estimates.
| Salary | Target at 40 | Target at 45 | Target at 67 (10×) |
|---|---|---|---|
| $40,000 | $120,000 | $180,000 | $400,000 |
| $60,000 | $180,000 | $270,000 | $600,000 |
| $75,000 | $225,000 | $337,500 | $750,000 |
| $100,000 | $300,000 | $450,000 | $1,000,000 |
| $150,000 | $450,000 | $675,000 | $1,500,000 |
Read the table as “how much should I have in my 401(k) at 40” if all your retirement money sits in workplace plans; otherwise add IRAs and other retirement accounts together. A salary multiple scales with your pay, so a promotion raises your target too — another reason to raise contributions with every raise.
Average and median 401(k) balance at 40
Vanguard’s How America Saves 2026 covers about five million plan participants. For the 35–44 age band, the median balance is $46,919 and the average is $120,742 — the average is 2.6 times the median because a minority of large accounts pulls it up. The median is the better “typical person” comparison; the average tells you what a diligent long-term saver can reach.
| Vanguard age band | Median | Average |
|---|---|---|
| Under 25 | $2,234 | $7,259 |
| 25–34 | $18,732 | $50,261 |
| 35–44 | $46,919 | $120,742 |
| 45–54 | $78,730 | $214,991 |
| 55–64 | $107,269 | $305,006 |
| 65+ | $103,202 | $330,186 |
A single 401(k) undercounts what households hold, because many people also have IRAs, a spouse’s plan and old employer accounts. The Federal Reserve’s Survey of Consumer Finances 2022 counts all retirement accounts of a family. Among families that have one, the 35–44 group holds a median of $45,000 (mean $141,520).
| Age of family head (SCF 2022) | Median | Mean |
|---|---|---|
| Under 35 | $18,880 | $49,130 |
| 35–44 | $45,000 | $141,520 |
| 45–54 | $115,000 | $313,220 |
| 55–64 | $185,000 | $537,560 |
| 65–74 | $200,000 | $609,230 |
| 75+ | $130,000 | $462,410 |
Run your own numbers for age 40Add your salary, employer match and raises to see your projected 401(k) balance at retirement.
2026 401(k) and IRA contribution limits at age 40
| Account (2026) | Your limit at 40 | Per month |
|---|---|---|
| 401(k), 403(b), TSP, 457 — employee deferral | $24,500 | $2,042 |
| Catch-up contributions | from age 50 | — |
| IRA (traditional or Roth) | $7,500 | $625 |
| Maximum personal savings | $32,000 | $2,667 |
Employer matching and profit-sharing contributions do not count against the $24,500 employee limit. Very few people hit these ceilings — Vanguard reports that only about 14% of participants contributed the maximum in 2025 — so for most, the practical target is a savings rate (12%–15% of pay including the match) rather than the legal cap.
What your 401(k) could grow to by 67
27 years of compounding remain until 67. The table projects monthly contributions at 5% and 7% average annual returns, starting either from zero or from today’s median balance for your age ($46,919). $2,042 a month is the full $24,500 limit.
| Saving | From $0 · 5% | From $0 · 7% | From $47k · 5% | From $47k · 7% |
|---|---|---|---|---|
| $250/mo | $167,733 | $230,533 | $342,903 | $522,081 |
| $500/mo | $335,466 | $461,066 | $510,636 | $752,614 |
| $1,000/mo | $670,931 | $922,132 | $846,101 | $1,213,680 |
| $2,042/mo | $1,370,041 | $1,882,993 | $1,545,211 | $2,174,542 |
Estimates in nominal dollars, before fees and taxes. With 2.5% inflation, a dollar 27 years from now buys about 51¢ of today’s goods.
Catching up to 10× by 67: for a $75,000 earner, reaching $750,000 at 7% takes about $813 a month starting from nothing, or $497 a month starting from the $46,919 median — 8% of pay. At 5% returns it rises to $857 a month.
3× salary by 40
Fidelity’s second named milestone: about three times your salary by 40 — $225,000 on a $75,000 income. The median 35–44 Vanguard participant has $46,919, so most people are below this line; it describes someone who started at 25 and never stopped. At 40 you still have 27 working years to 67, which is plenty of time to close a gap if you raise your savings rate now. Higher earners should note the 2026 Roth IRA income phase-out ($153,000–$168,000 single, $242,000–$252,000 joint); above it, a “backdoor” Roth may be an option.
The cost of waiting 5 years
Investing $500 a month from 40 at a 7% return produces about $461,066 by 67. Waiting until 45 leaves about $303,353 — $157,713 less, even though you would only have contributed $30,000 less.
How to catch up on retirement savings at 40
- Check your Social Security estimate at ssa.gov to size your gap.
- Pay off credit-card and other high-interest debt before 50 to free cash for catch-ups.
- Review fees: switching from a 1% to a 0.1% fund can add tens of thousands by 67.
- Rebalance once a year rather than reacting to markets.
- Consider a Roth IRA (or backdoor Roth) for tax diversification.
Not financial advice. Figures are general educational estimates based on public data and fixed return assumptions (nominal, before fees and taxes); real returns vary and can be negative. Consider a fee-only fiduciary adviser for decisions about your own situation.
FAQ: Retirement savings at 40
How much should I have in my 401(k) at 40?
Fidelity’s guideline suggests about 3× your salary saved for retirement at 40, for example $180,000 on a $60,000 salary or $300,000 on $100,000. Treat it as a rough benchmark, not a requirement.
What is the average 401(k) balance at age 40?
Vanguard’s How America Saves 2026 reports an average of $120,742 and a median of $46,919 for participants aged 35–44.
How much can I contribute to a 401(k) at 40 in 2026?
$24,500 in employee contributions, plus $7,500 to an IRA.
Am I behind on retirement savings at 40?
If you are below the median of $46,919 for ages 35–44 you are behind most savers your age, but 27 years of contributions can change a lot. Saving $500 a month at 7% for 27 years grows to about $461,066.
Is the Fidelity savings-by-age rule realistic?
It describes someone who saved 15% from age 25 with typical market returns. Most people start later, so the median saver is below it; the rule is most useful as a direction and to show how a higher savings rate closes the gap.
Related guides
- Retirement savings at 35Benchmark 2× salary
- Retirement savings at 37Benchmark 2.4× salary
- Retirement savings at 42Benchmark 3.6× salary
- Retirement savings at 45Benchmark 4.5× salary
- Is $250,000 enough to retire?4% rule income $10,000/yr
- Is $500,000 enough to retire?4% rule income $20,000/yr
- Is $1 million enough to retire?4% rule income $40,000/yr
- 401(k) calculatorMatch, raises, Roth vs traditional
- FIRE calculatorHow much to retire early
Retirement savings by age
Sources & method
- Salary multiples: Fidelity Viewpoints, “How much do I need to retire?” — 1× salary by 30, 3× by 40, 6× by 50, 8× by 60, 10× by 67 (assumes saving 15% a year from age 25, retiring at 67, about 45% income replacement from savings). Values between these ages are our straight-line interpolation.
- 401(k) balances by age: Vanguard, How America Saves 2026 (participant balances at Dec 31, 2025; average $167,970, median $44,115).
- Retirement-account balances by age of family head: Federal Reserve, Survey of Consumer Finances 2022 (families that hold retirement accounts).
- 2026 contribution limits: IRS news release IR-2025-111 and Notice 2025-67.
- Social Security: SSA estimated average retired-worker benefit, $2,071/month (January 2026). Spending: BLS Consumer Expenditure Survey 2024, households 65+ ($61,432/yr). Withdrawal rate: Morningstar, The State of Retirement Income (3.9% for 2026 retirees).
- Projections use monthly contributions and monthly compounding at the stated annual return; dollars are nominal (not inflation-adjusted). All projections are estimates.