When it comes to retirement savings, it’s easy to feel overwhelmed by the numbers and benchmarks that are often used to measure your progress. For many people, it can be discouraging to compare where they are to where they “should” be at any given age. This is especially true in the United States, where pensions are becoming less common, and the social safety net doesn’t fully cover retirement expenses. The burden of building a nest egg falls on individuals, making it all the more important to understand how much you should be saving at different stages of your life.

So whether you’re 35, 45, or 65, one of the most common questions people ask is: “Are my savings on track to provide what I need when I retire?” While the answer to that question depends on many personal factors, there are some general guidelines and action steps you can follow to improve your retirement outlook.

Understanding the Benchmarks

According to research by T. Rowe Price, the general recommendations for how much you should have saved by age are based on several assumptions. These include saving in tax-deferred accounts like 401(k)s, retiring at age 65, and withdrawing 4% of your portfolio annually. They also assume that you start saving as a young adult, gradually increasing your savings rate over time. While these benchmarks can provide helpful guidelines, they are not one-size-fits-all answers. Life is complex, and your financial needs and retirement goals will vary based on income, personal circumstances, lifestyle choices, and economic factors.

Here are the general recommendations for retirement savings as a multiple of your gross income, based on T. Rowe Price’s research:

Age 30: 5 times your current gross household income
Age 35: 1 to 5 times your income
Age 40: 5 to 2.5 times your income
Age 45: 2 to 4 times your income
Age 50: 3 to 6 times your income
Age 55: 5 to 8 times your income
Age 60: 5 to 11 times your income
Age 65: 7 to 5 times your income

While these benchmarks are helpful, it’s important to remember that many people’s savings fall below these targets. According to a Retirement Confidence Survey by the Employee Benefit Research Institute, only 36% of respondents reported having $250,000 or more in savings and investments. But don’t let these numbers discourage you. The journey to financial security is different for everyone.

Why You Shouldn’t Panic

First, it’s important to take stock of your unique situation. If you’re married, for example, measuring your combined income and savings with your spouse can give you a better understanding of your resources. Additionally, if you own a home and have equity in it, selling your home and downsizing or moving to a lower-cost area could provide a significant boost to your retirement savings.

It’s also worth noting that while hitting retirement savings targets can ensure you don’t run out of money, it may leave you with a significant amount of leftover funds. Some people don’t prioritize leaving large sums behind, and others may plan to work past age 65, allowing their savings to grow and giving them more time to build wealth.

Even if you’re not yet where you’d like to be, setting a target to work toward can help you stay focused. You can use tools like the online calculators provided by your 401(k) provider or T. Rowe Price’s savings table to figure out how much more you need to save annually to meet your goals.

Action Steps to Improve Your Retirement Outlook

1. Assess Your Current Savings

Start by reviewing your current savings. Use tools like Personal Capital to get a clear picture of your net worth, including your retirement accounts, and determine where you stand relative to your goals.

2. Create a Realistic Savings Plan

If you’re behind, it’s never too late to start making progress. Consider gradually increasing your savings rate. For example, you can set up automatic contributions to your 401(k) or IRA through your employer or an investment account. Apps like Acorns can help you invest spare change and build up savings without feeling like you’re sacrificing too much.

3. Take Advantage of Tax-Advantaged Accounts

Contribute to tax-advantaged accounts such as 401(k)s and IRAs to reduce your tax burden while saving for retirement. If you’re eligible, contribute the maximum allowed to take full advantage of these savings vehicles.

4. Invest Wisely

Don’t just save—make your money work for you. Investing in stocks, bonds, or mutual funds can provide long-term growth for your retirement fund. If you’re unsure where to start, consider using a robo-advisor like Betterment or Wealthfront for low-fee, automated investing.

5. Consider Delaying Social Security

If possible, delaying your Social Security benefits until after your full retirement age can increase your monthly benefit, providing more security during your retirement years.

6. Cut Unnecessary Expenses

Reducing debt and cutting unnecessary expenses can free up more funds for retirement savings. Start by using budgeting apps like YNAB (You Need A Budget) to track your spending and prioritize saving for the future.

Plan for a Fulfilled Retirement

It’s essential to remember that retirement isn’t just about saving; it’s about creating a plan that fits your lifestyle and goals. Whether you’re aiming to travel, pursue hobbies, or simply enjoy more time with loved ones, taking the right steps today can help ensure you have the financial resources to enjoy a fulfilling retirement.

As you plan for the future, ask yourself: How can you start today to put yourself on a better path for a secure and fulfilling retirement? Are there changes you can make to accelerate your savings or improve your financial habits?

Join the conversation at the Age Brilliantly Forum to share your strategies for building a successful retirement plan and connect with others who are on the same journey!