When people talk about “how much you should have saved by now,” it usually ends with everyone feeling guilty. But the truth is simple: these targets aren’t strict rules. They’re rough guides, a way to check whether your long-term plan is on track, not a pass/fail exam.
Below is the clearest, no-pressure breakdown of what the average person might aim for, and why these numbers matter.
These milestones aren’t rules (and you’re not behind)
Your financial life is shaped by your job, kids, rent, health, and even pure luck.
Comparing yourself to a neat internet chart rarely reflects real life. Think of these milestones as reference points, a compass, not a scorecard.
The simple formula: 1× salary by 30, 2× by 40, 3× by 50
This is one of the most widely used frameworks in retirement planning.
- By 30 → aim to have 1× your annual salary saved
- By 40 → around 2× your salary
- By 50 → around 3× your salary
So if you earn £35,000:
- 30 → £35,000 saved
- 40 → £70,000 saved
- 50 → £105,000 saved
It’s not perfect for everyone, but it gives you a quick way to sense-check where you are.
These early milestones are deliberately light, they’re more like a minimum pace to keep you on track. Most people’s savings accelerate in their 40s and 50s thanks to higher earnings and bigger pension contributions.
Your pension counts toward these numbers
Most people massively underestimate how much they’ve already saved because they forget their pension is part of the total.
Workplace pensions + personal pensions + any savings/investments = your true progress.
Even if you’re not putting much in, your employer contributions and tax relief do a lot of the work for you.
Why being on track early matters (hello compound interest)
The earlier you start, the less you actually need to contribute later.
A pound saved at 25 could be worth three or four pounds by the time you retire – purely from growth. If you start late, you can absolutely catch up, but you’ll have to put in more yourself because you’ve missed out on the early compounding years.
Time is the magic ingredient.
You won’t reach these targets through cash savings alone
Cash is safe, but it doesn’t grow fast enough to keep up with inflation.
To hit age-based milestones, most people will need investing in the mix, typically via a pension or a Stocks & Shares ISA. You don’t need to pick individual stocks or be an expert. A simple index fund or a well-diversified pension plan usually does the job.
Common myths to ignore (“you need £1m to retire”) — and the 25× Rule explained
There’s no universal number everyone must hit. But there is a simple way to estimate your own target without getting lost in online noise:
The 25× Rule
Take the annual income you want in retirement and multiply it by 25.
That gives you a rough total to aim for.
Examples:
- Want £25,000 a year? → £625,000 total
- Want £30,000 a year? → £750,000 total
- Want £40,000 a year? → £1,000,000 total
It’s based on the idea that you can safely withdraw around 4% of your pot each year without running out too early.
But, and this is important, you don’t have to hit these numbers perfectly. Your needs depend on:
- housing costs
- whether you’ll have a mortgage
- how much the State Pension covers
- the lifestyle you actually want
The 25× Rule gives you a personalised target instead of the scary “you need £1m” myth that gets thrown around online.
What a ‘comfortable retirement’ looks like today
According to UK cost estimates, a comfortable retirement for a single person is roughly £31,000 a year, and for a couple around £43,000.
The State Pension currently covers a chunk of that, but not all of it.
Your savings and investments fill the gap, that’s why these milestones exist in the first place.
Aiming for 1×, 2×, 3× your salary helps you build towards that lifestyle gradually, without last-minute panic in your 50s.
