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  • Writer's pictureJacob Vernon

How Much Savings Should You Have by 40?

Updated: Jun 22, 2023

How Much Should You Have Saved by forty

As you approach your 40s, it's natural to start thinking about your retirement savings goals. While there is no one-size-fits-all answer, there are industry insights and analyses that can provide guidance.

Target Savings

A useful rule of thumb is to have saved three times your annual salary by the age of 40. For instance, if your yearly income is $100,000, your savings target should be $300,000 by your 40th birthday. Although this may appear daunting, starting early and saving consistently can help you attain this goal.

It's important to note that this is a guideline, and various factors like your financial goals, lifestyle, and expenses will determine the amount you need to save. Furthermore, elements such as the cost of living in your area, your retirement plan, and your current debt level will all influence your savings target.

Retirement Timeline

Another crucial factor to consider is your retirement timeline. If you plan to retire early, you may need to save more aggressively to support yourself for a longer period. Conversely, if you plan to work well into your 60s or 70s, you may have more time to save and build your retirement nest egg.

Importance of Investing

Investing also plays an essential role in building wealth for your retirement. Talking to a financial advisor can help you determine the best investment strategy based on your risk tolerance and goals.


In conclusion, while there is no one-size-fits-all answer to how much savings you should have at 40, creating a personalized savings plan and working with a financial advisor can help you achieve your retirement savings goals. By following industry insights and analysis, you can feel confident in building a comfortable financial future.

If you have any questions please contact Vernon Management Group at

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Jacob Vernon, Investment Advisor Representative

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