This Is How Much You Should Have in Savings by 50. How Do You Compare?

By age 50, the general recommendation is to have about five to six times your annual income saved up in retirement accounts, brokerage accounts, and other long-term savings accounts.

For example, if you earn $80,000 a year, you'd want roughly $400,000 to $480,000 put away.

Of course, this isn't a perfect rule for everyone. Here's why you might need more or less than this guideline, and what to do if you feel behind.

The 5x-6x income guideline

This benchmark is popular because it's easy to understand and flexible enough to work for a wide range of earners.

Importantly, it's not just talking about cash sitting in a savings account. It typically includes:

• Retirement accounts like 401(k)s and IRAs
• Brokerage accounts
• Long-term savings earmarked for retirement
• Equity in other assets like rental properties or businesses

The goal is to estimate whether your savings trajectory lines up with supporting your lifestyle once paychecks stop. But like most personal finance rules, it works best as a directional check, not a strict pass-fail test.

If you're building toward that 5x-6x target, where you keep your investments matters. Take a look at today's top brokerage firms and how they fit into long-term retirement planning.

Why this rule doesn't fit everyone perfectly

No two retirement plans look exactly alike. So your ideal savings number may be higher or lower depending on your situation.

One big factor is when you plan to retire. Someone aiming to fully leave work in their mid-50s will likely need more savings than someone planning to work into their late 60s. Earlier retirement generally means a higher savings target.

Another consideration is guaranteed income. If you'll receive a pension or have other reliable income sources in retirement, you may not need to rely as heavily on personal savings as someone without those benefits.

Your overall financial picture also matters. For example, some people own rental properties or other income-producing assets that help offset living expenses later in life. Others may expect to downsize or relocate to a lower-cost area, reducing how much they need to draw from savings each year.

All of these variables can push your personal target above or below the standard guideline -- and that's completely normal.

Not where you want to be yet? You still have options

The good news is that most people approaching age 50 still have 10-20 working years ahead of them before retirement. This is plenty of time to make meaningful progress on savings.

The most effective place to focus is often tax-advantaged retirement accounts, like 401(k)s and IRAs. These accounts allow your money to grow more efficiently, thanks to tax deferral or tax-free withdrawals later on.

Once you hit 50, many retirement accounts also allow catch-up contributions, which raise your annual contribution limits and give you an extra chance to accelerate savings.

If you haven't set up an IRA, take a look at today's top IRA brokers -- some offer matching or bonus incentives.

If contributing more feels tough, the next step isn't perfection -- it's awareness.

One simple exercise that can help is reviewing a few months of bank and credit card statements. Look for spending that didn't add much value or joy. The point isn't guilt or cutting everything fun. It's about spotting small leaks that could quietly fund your future instead.

Plenty of people are surprised by what they find, whether it's unused subscriptions, frequent takeout, or habits that slowly grew over time without notice.

The bigger picture

Hitting a specific savings number by age 50 isn't the only thing that determines a comfortable retirement. What matters more is direction.

If you're saving consistently, adjusting when needed, and staying engaged with your finances, you're already doing something powerful. Even modest increases in savings during your 50s can compound into meaningful lifestyle flexibility later on.