Investing

If your household brings in $200k per year, this is how much you need saved for retirement by age 35

Ian Cooper

Published: December 12, 2024 1:20 pm

If you plan to retire one day, you need to put away enough money to live once you’re no longer generating a regular paycheck.

For example, if you’re 35 and you bring in $200,000 per year, you should have between $560,000 and $730,000 saved for retirement, according to Edward Jones.

Key Points About This Article

• If you’re thinking about retiring, make sure you have a comfortable cushion.
• According to Edward Jones, if you’re 35 and you bring in $200,000 per year, you should have between $560,000 and $730,000 saved for retirement, according to Edward Jones.
• Also: Take this quiz to see if you’re on track to retire ^(Sponsored)

If you’re 55 and bring in $200,000 per year, you should have between $1.815 million and $2.115 million saved. And if you’re 65 and bring in $200,000 per year, you should have between $2.77 million and $3.17 million saved.

On average, those between the ages of 35 and 44 have about $141,520 saved. Those between 45 and 54 have $313,220 saved. Those between the ages of 55 and 64 have $527,560 saved

At the same time, there are many Americans who aren’t there just yet.

About 57% of Americans say they’re behind on their retirement savings, as noted by Bankrate’s Retirement Savings Survey. About 35% say they’re significantly behind. “Only 15 percent of workers feel ahead of where they should be, including 9 percent who feel slightly ahead and 6 percent who feel significantly ahead. Another 22 percent feel they’re right on track with retirement savings,” they added.

Whichever camp you may fall into, there’s still time to catch up.

For one, you can maximize your 401(k), and if you don’t have one set up, or you work for yourself, talk to your company’s financial administrator or your advisor. If you do work for yourself, you can always set up a Solo 401(k).

If you have an employer that will match your 401(k), maximize your contributions up to the amount your employer will match. If your employer will match up to 6% of your salary, maximize that. So, if you earn $75,000 a year, and you contribute 1%, that’s $750 for retirement. If your employer matches that, you have $1,500 for retirement per year. If you contribute 6% and your employer matches that, that’s about $6,750 in retirement per year.

You can also invest in a traditional IRA, for example. While it’s best to check with your financial advisor, many times you can deduct contributions on your tax return.

There’s also the Roth IRA, where you make contributions with money you’ve already paid taxes on. With a Roth IRA, your money can grow tax-free with tax-free withdrawals. But again, check in with your financial advisor before doing anything.

And, if you are self-employed, you can set up a Solo 401(k), a variation of the 401(k) plan but set up for those who work for themselves. For 2024, the IRS says you can contribute up to $69,000 with an additional catch-up contribution of $7,500 if you’re 50 or older.

You should also check with your financial advisor to plan accordingly.