Your Money
Turning 50 is a major milestone—and also a wake-up call when it comes to retirement savings. A recent CNBC article breaks down how much money you should ideally have tucked away by this age, and what to do if you’re not quite there yet.
Here’s what you need to know:
- The 6x Rule: Experts say that by age 50, you should aim to have saved about six times your annual income. So, if you’re earning $80,000 a year, your retirement savings target should be around $480,000.
- Behind on Savings? Catch Up Fast: The IRS allows individuals aged 50 and older to make catch-up contributions to their retirement accounts. For 401(k) plans in 2025, you can contribute an extra $7,500 on top of the standard limit, giving you a chance to close the gap quickly.
- Reality Check: Despite these recommendations, many Americans are falling short. Average 401(k) balances for people in their early 50s are often well below the suggested benchmarks, underscoring the need for greater awareness and planning.
Whether you’re ahead of the game or working to catch up, now is the perfect time to reassess your retirement strategy. Review your current savings rate, take advantage of catch-up contributions, and consider meeting with a financial advisor to fine-tune your plan. Small changes today can make a big difference tomorrow.
At PWM, we provide each client with an annual Retirement Map—an easy-to-understand snapshot that tracks your progress and outlines a sustainable lifestyle in retirement. We also help model key financial goals, major expenses, Social Security timing, and even downsizing scenarios. Because when it comes to retirement, clarity leads to confidence—and awareness is everything.
How much you should have saved by age 50
by Natalie Wu
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