How much money should a 35-year-old have saved?

There's no perfect rule, but a general guideline often used by financial planners is that a 35-year-old should have saved about twice their annual income.

Is $100,000 saved at age 35 good?

It depends. A good guideline is that you should have two times your annual income saved by the time you're 35 in order to be on track for a comfortable retirement. However, several variables come into play, including your desired retirement age, income, and lifestyle goals.

How much does the average 35-year-old have in their 401(k)?

According to Empower Retirement, the average 401(k) balance of someone in their 30s is $211,257. However, the median balance is $81,441, which means that half of the 401(k) accounts have more than this amount, and half have less.

How much will $10,000 in a 401(k) be worth in 20 years?

There's no way to know for sure how a 401(k) will perform over any future period of time, but it's reasonable to expect returns around 7% to 8% from a properly allocated 401(k) over the long term. Based on this, it would be fair to expect $10,000 in a 401(k) to grow to about $42,500 in 20 years without contributing any additional money to the account.

How Much Money Should I Have Saved by 35?

Key Points

Aim to save twice your annual income by age 35, approximately $130,000 for average earners.
Prioritize eliminating high-interest debt like credit cards to free funds for investment.
Contribute aggressively to retirement plans, aiming for 15-20% of pre-tax income.

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An infographic outlining different ways to save more money at age 35. — Image source: The Motley Fool.

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Stretch your emergency fund to six months

Your emergency fund needs are higher in your mid-30s than they were in your 20s, especially if you have kids or own a home. A three-month fund may have been sufficient when you were just starting out, but at 35 you should aim for at least six months of expenses.

According to The Motley Fool's research on average savings account balances, only 55% of Americans have enough saved to cover three months of expenses, meaning nearly half would be forced to tap retirement accounts or take on debt in an emergency. This is especially important if you work in an industry prone to layoffs or you're the primary earner in your household. A solid emergency fund gives you the freedom to find the right opportunity after a job loss rather than taking the first paycheck offered. Motley Fool Money keeps a current list of the best high-yield savings accounts, so your emergency fund can earn a competitive rate while it sits.

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Tackle credit card and student loan debt

If you're still carrying credit card balances or student loans, eliminating them should be a top priority. Start with credit cards, which typically carry the highest interest rates of any debt. Then move to student loans, focusing first on private loans since they usually have higher rates than federal loans.

Invest money as you eliminate debt

As each debt is paid off, redirect what you were paying toward it into retirement investing rather than letting it disappear into discretionary spending. If you have multiple debts, the debt avalanche method works well: focus your extra payments on the highest-interest debt first while paying minimums on everything else. Once that's gone, roll those payments toward the next-highest rate debt.

Don't delay investing while paying down debt. Even if you started late, your money still has 30 or more years to grow from here.

Contribute aggressively to your 401(k)

What was adequate in your 20s rarely cuts it at 35. A target of 15% to 20% of your pre-tax income is a solid goal, though you may need to push higher if you're just getting started.

First, contribute enough to capture your full employer 401(k) match. That's the closest thing to a guaranteed return in investing.

After that, aim to max out a Roth IRA. If you have money left over beyond that, put it back into your 401(k). If you're self-employed, explore your options for solo 401(k)s and other self-employed retirement plans.

Not sure where to open a Roth IRA? Motley Fool Money has a guide to the best IRA accounts if you want a shortcut to finding the right one.

Ignore what other people are doing

In your mid-30s, it's easy to watch peers upgrading their homes, cars, and vacations and feel like you're falling behind. Social media makes this worse by presenting everyone else's highlights as their everyday reality.

Focus on your own goals, even if that means living closer to the budget of a 25-year-old than a 35-year-old. Living a lifestyle you can genuinely afford, rather than one that looks impressive, is the single most powerful thing you can do to build lasting wealth.

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Savings at 35 FAQs

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

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