How Much to Have Saved For Retirement at 30, 40, & 50 – EP 393

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“I’m 35 and I feel far behind in life.”  You’re wrong. You’re at the best time to start! In this episode, Jen and Jill discuss the amount (theoretically) you should have saved for retirement at certain ages without disregarding what you truly care about and want to do in life.

Get control of it NOW so that you feel better overall about saving for retirement


  • Friendletter. If you need more of this outside of the Frugal Friends Podcast, get the Friendletter. We are talking about investing stuff, freebies, savings tips, and smart buying practices—not deals, but how you can get good-quality stuff without buying the social media viral nonsense.

Average Retirement Spending in 2023

The article by Retire Guide discusses retirement savings with insights and guidelines to effectively plan and manage finances for retirement.

What Jen + Jill have to say:

Jill expresses fascination with the insights from the article on average retirement spending in 2023, stressing the importance of understanding these spending habits to inform one’s retirement savings plan and avoid accumulating debt. The article highlights a study that revealed how retirees spend less on average than the general population. But housing remains a significant expense, emphasizing the need to realign expectations regarding housing costs in retirement. 

One year of retirement spending amounts to 80% of your annual pre-retirement spending. Jen suggests a good baseline is to average out your monthly spending and then go for 80% of that. Control spending to manage healthcare expenses in retirement and note the shift in spending priorities, with food becoming a larger portion of expenses. Individuals in their 30s should start planning for retirement early and take control of their finances to feel more secure about saving for the future.

A Guide to Retirement Savings by Age: 20s, 30s, 40s, 50s, & 60s

The article by Trust & Will provides a comprehensive guide on retirement savings tailored to different age groups.

What Jen + Jill have to say:

Jen suggests in their 20s to start building an emergency fund, contribute to a 401(k), aim for 15% of pre-tax income towards retirement, and emphasize rolling over old 401(k) accounts into an IRA—you can use Capitalize for FREE. In your 40s, having three times your annual salary saved is an important factor towards your retirement savings, and in your 60s, evaluating non-retirement assets should be taken into consideration. 

Jill advises individuals in their 30s to invest the equivalent of their annual salary, emphasizing the importance of investing 18–23% of pre-tax income if just starting in their 30s, while for those in their 50s, she recommends saving six times their annual salary and maximizing catch-up contributions.

How much longer do you have until you hope to retire? What do you need to shift in order to be prepared?

Jill aims to retire in 28 years at age 56 and plans to increase her retirement investing, while Jen targets retirement at age 60, hoping it’ll be the time of birth for her first grandchild.

Bill of The Week

Thank you Claire for sharing your bill about having a meeting weekly with mimosas about money, spending, and goals!

Thanks so Much for Listening!

Thanks so much for listening. Many of you know we have a newsletter called The Friendletter that goes out 3x a week where we send out freebies, saving tips, and life hacks to help you save money. We want to give a shout out to this friend for sending us this email as a response to our Friendletter:

Thank you for all the valuable materials. God bless the team richly.

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