How Much Should You Have Saved By Your Age?

How Much Should You Have Saved By Your Age?

“If you don’t know where you’re going, any path will take you there”
I am often asked by my new clients for my feedback on what they’ve achieved so far and whether they’re on track for their age with their finances. Of course, there is no clear answer without first knowing what their goals are – after all, if you don’t know where you’re going, any path will take you there.

I’ve put together as a guide for you an outline net asset milestones that you should have accumulated by each age, if you wish to achieve financial independence. Please note that this is a guide only and does not take into account any of your personal circumstances. You should consult the advice and guidance of a professional and qualified financial advice to construct your own financial strategies.

First, let’s make some broad assumptions for use in this case study. We will assume that you’re starting work and saving from age 21, with an annual income of $60,000. We’re also going that your income climbs steadily over time and we’ll assume an annual rate of return of 8% for the purposes of this exercise. That is the rate of return that is earned on your investments. Next let’s look at how much of your income you should be saving on a regular basis:

As a guide, a prudent individual who is on path to achieving financial independence should be saving the following amounts as a minimum percentage of his / her income.

Age Percentage of Income Saved
20 – 30 25%
31 – 40 30%
40+ 35%

If these figures seem too high, it’s likely time to sit down with a financial adviser and start going through some budgeting exercises to increase your savings. You can also click here to use my free online cash flow calculators.

This scenario would achieve a net asset balance of approximately $3.8M by age 65, which would conservatively generate a retirement income of $150,000. The following chart outlines how much you should have accumulated in net assets by each age, so you can track your own progress against this benchmark. I’ve also included a table highlighting these figures for your reference.

The table below outlines the key targets for each key milestone.

Remember that this is a guide only, you may wish to spend a lot more in retirement and will therefore require a higher balance by retirement, or you may wish to retire earlier which will require a higher savings amount earlier on. I hope you find this guide useful and feel free to contact me with any questions you have about your own situation.


To Your Financial Success!

Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Adviser with Australian Expatriate Group of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore.

Book a complimentary consultation here.


Jarrad Brown is the trusted fee-based financial adviser in Singapore working with professional expats in the region. An Australian qualified and experienced Financial Adviser, Jarrad provides specialist advice to Australian expats as well as other nationalities.

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