How Much Should I Have in Savings in My 20s, 30s, 40s, 50s, and 60s?

August 15, 2025
Ify Bam

How Much Should I Have in Savings in My 20s, 30s, 40s, 50s, and 60s?

A Decade-by-Decade Guide to Growing Your Financial Future

Let’s Talk About Savings Goals at Every Life Stage

Saving money can feel overwhelming, especially when balancing life’s many financial demands. But having clear savings goals can give you financial security, freedom, and peace of mind.

So, how much should you actually have saved in your 20s, 30s, 40s, 50s, and 60s? Let’s break it down in a way that fits your lifestyle, priorities, and financial goals.

Savings Goals by Decade

In Your 20s: Build a Strong Foundation

Target savings: At least half to one year’s salary by age 30

Your 20s are all about building good financial habits while navigating student loans, first jobs, and possibly moving out on your own.

Key Focus Areas:

Build an emergency fund (3–6 months of essential expenses)
Contribute to a pension scheme (employer-matched, if available)
Start investing, even if it’s a small amount
Avoid high-interest debt (credit cards, payday loans)

Where to save?

A high-interest savings account (for emergency funds)
A Lifetime ISA (LISA) to boost first-home savings with a government bonus
A workplace pension (even if retirement feels far away)

In Your 30s: Grow and Secure Your Wealth

Target savings: 1.5 to 2 times your salary by age 40

Your 30s often bring bigger responsibilities—buying a home, growing a family, or advancing your career.

Key Focus Areas:

Increase emergency savings to 6–12 months of expenses
Prioritise investing for long-term growth (stocks, ISAs, pensions)
Pay off high-interest debts faster
Start saving for children’s future (if applicable)

Where to save?

Stocks & Shares ISA for higher returns
Help to Buy or Lifetime ISA for homebuyers
Junior ISA or trust fund if you have kids

In Your 40s: Secure Your Future While Enjoying the Present

Target savings: 3–4 times your salary by age 50

By now, you may be juggling a mortgage, childcare costs, and career progression, but it’s also time to get serious about long-term financial security.

Key Focus Areas:

Maximise pension contributions
Reduce outstanding debt (mortgage, loans)
Diversify investments for future security
Maintain a 12-month emergency fund

Where to save?

Workplace pension (increase contributions if possible)
Stocks & Shares ISA for continued wealth growth
Flexible savings account for life’s unexpected expenses

In Your 50s: Prepare for a Comfortable Retirement

Target savings: 6–7 times your salary by age 60

As retirement gets closer, it’s time to fine-tune your financial plan. You may also want to downsize, travel, or support family members financially.

Key Focus Areas:

Increase retirement contributions and check pension forecasts
Pay off the mortgage if possible
Avoid unnecessary spending and boost savings
Consider long-term care plans

Where to save?

Pension accounts (track and optimise them)
Retirement savings accounts (SIPP, ISA)
Property investments (if applicable)

In Your 60s: Transition Into Retirement with Confidence

Target savings: 8–10 times your salary by retirement

Your 60s are about using your savings wisely while maintaining financial independence.

Key Focus Areas:

Plan how to withdraw from your pension tax-efficiently
Cut unnecessary expenses and live within your means
Ensure you have a will and estate plan in place
Consider downsizing or passive income streams

Where to save?

Pension funds & annuities for steady retirement income
Savings accounts for short-term needs
Investments to maintain wealth

Final Thoughts: Your Savings Journey Is Unique

There’s no one-size-fits-all approach to saving. Whether you’re in your 20s just starting out or in your 50s fine-tuning your plans, it’s never too early or too late to build financial security.

What’s your biggest financial goal right now? Let us know in the comments!

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