Here’s How Much You Need to Save Each Month at 20, 30, 40, and 50 to be a Millionaire by the Time You Retire

How Much You Need to Save to Retire

Here’s How Much You Need to Save Each Month at 20, 30, 40, and 50 to be a Millionaire by the Time You Retire

Retiring a millionaire is an ideal scenario when it is time to hang your cape. The good news is that it is never too late to start saving between the age of 20 to 50 and be a millionaire by the time you retire. However, the amount you need to save in order to retire as a millionaire depends on the age you start saving money.

If you are wondering how much you need to save in order to retire as a millionaire by a certain age, this post will be your guide. So without further ado, let us dive right in.

How Much to Save Each Month to Retire a Millionaire at Different Age

You can start saving at any point in your life if you wish to retire as a millionaire. Here is an estimate of how much you can save from the age of 20, 30, 40, and 50.

How Much to Save From Your 20s to Retire a Millionaire

So, you are in your 20s, starting your career, and wish to retire a millionaire. In order to ensure this, you will have to adopt some strong saving habits. To be a millionaire by the time you retire will require you to follow the 50/30/20 model. Therefore, you might be looking at saving more than $500, or 20% of your income, or whichever is higher.

Try to save when and where you can, and be strict about following the habit no matter what. Try to use the cash windfalls, such as bonuses, to boost your savings instead of going on a spending spree. Similarly, dedicate any additional income, including annual raises and bonuses, to facilitate your goal of retiring as a millionaire.

How Much to Save From Your 30s to Retire a Millionaire

Whether you are planning to buy a house, launch a business, or start a family, savings can come in really handy in your 30s. Now, the amount you must start saving when you are in your 30s and retire a millionaire can be $800 or more. As daunting as it may sound, adopting a strict lifestyle, staying within your budget, and consistent saving habits can help you become a millionaire by the time you retire.

You can multiply your savings by putting the money in an IRA or investment account. This will give you additional help to boost your reserves and reach the million-dollar mark sooner.

How Much to Save From Your 40s to Retire a Millionaire

The 40s is the time in your life when you may want to switch careers for a boost in income or other reasons. Similarly, it is the time when you may have to plan your finances to ensure that you have the education money on the side for the kids to attend college.

However, it is easier said than done. You will require adhering to a strict financial routine, saving habits, and a controlled lifestyle. Suppose you are in your 40s and want to retire as a millionaire. In that case, you will need to save at least $1,000 or more every month for the rest of your life. Once again, investing in profitable investment options may help you get there faster.

How Much to Save From Your 50’s To Retire a Millionaire

By the time you are 50, you can already see retirement on the horizon. This is the phase of life when savings take the top priority. The reason is that you know that now you have limited years left to earn and save as much as you can to survive your golden years after retirement in peace with financial security.

Therefore, if you are planning to retire as a millionaire and want to start saving in your 50s, you will need a minimum of $1,000 per month. However, it is best to try and put as much money aside as you can to ensure that you reach the million-dollar mark.

General Rules to Save for Retirement

Saving a couple million dollars by the time you are in your 60s or 70s sounds quite challenging. However, it is not impossible. Look at the bigger picture; with strenuous hard work, a disciplined lifestyle, saving habits, and consistency, you will start seeing your finances shape up in the next 10 to 20 years. However, this depends on the age when you first started saving for retiring a millionaire.

That said, you can follow some of the general rules of thumb to accomplish your goals, which are as follows:

  • Aim to have your savings equal to your annual income saved by the age of 30, thrice by the time you are 40, and five times by the age of 50.
  • Your chances of retiring as a millionaire depending on when you started saving. Therefore, the sooner you start saving, the easier it will be. This is because the longer timespan to save will give you a cushion. Additionally, this will give you extra years to benefit from compound interest.
  • It is best to aim to save between 5% and 15% of your income as saving for retirement. It is not going to be easy; therefore, you can start by saving a percentage that is manageable to begin. Once you are comfortable, you must increase it by 1% every year until you reach 15%.

That said, the 50s is not the benchmark or deadline to start saving. You can even manage to retire as a millionaire if you start saving in your 60s. However, this means you will have to save 7x your income at the age of 60.

Leveraging the Power of Interest

The retirement saving rate can affect your total returns significantly. Suppose you are 25, earn an annual income of $67,500 and start saving with a yearly return on retirement savings of 5%.

By the time you are 65, you will have savings of $531,000 or more. Increase your annual return on retirement savings to 10%, and you will retire with over $1.06 million. Similarly, a 15% annual rate will leave you with a whopping $1.594 million in your retirement savings account.

If you start saving at the age of 35, a 15% saving rate will leave you with a little over $814,000 by the age of 65. Aim for a 20% annual saving rate, and you will hit the million dollar mark by the time you retire.

As you grow older, you will have to save a higher percentage of annual saving rates for retirement to hit the million dollar target by the age of 65. Once again, the advice is to start sooner. If you need to plan, Personal Capital can help you prepare for retirement and stay on track over the years as your strategic financial advisor.

Increase Your Contribution

To boost your chances of retiring as a millionaire, you must increase your retirement contributions to 401(k). For instance, you can put 5% of your annual pay aside in your 401(k) account. With your employer having to match your contribution by 100%, your total annual saving contribution will reach 10% of your annual salary. This will further help you benefit from compound interest and investment returns.


Do you wish to retire as a millionaire? Well, it is never too late to start your savings journey. You can follow the above-mentioned tips to ensure financial stability. Combine your efforts with a financial advisor specializing in retirement planning, and you will get there faster.