Retirement calculator pre-filled for age 40. See how much to save to retire at 65. Tax-advantaged account strategies for 2026.
Assumes constant return rate. Does not account for inflation, taxes, or Social Security. For illustrative purposes only.
At 40, you have 25 years until traditional retirement — still an excellent amount of time for compounding to work, but the urgency is higher than at 30. Fidelity's benchmark suggests having 3x your salary saved by 40. If you're behind that target, don't panic — consistent high contributions from 40 to 65 can close most gaps.
Your peak earning years likely lie ahead. Many workers in their 40s see their highest income growth, creating real opportunity to accelerate savings. Target contributing the maximum to all available tax-advantaged accounts: $23,500 to a 401(k) (2026 limit), $7,000 to an IRA, and potentially an HSA if you have a high-deductible health plan.
With 25 years to go, a moderately aggressive asset allocation still makes sense — perhaps 70–80% equities, 20–30% bonds. Rebalance annually. As you enter your 50s, gradually shift toward a more conservative mix. Target-date funds do this automatically if you prefer a hands-off approach.
Estate planning becomes relevant at 40. Update beneficiaries on all accounts, create or update a will and durable power of attorney, and consider life insurance and disability insurance if you haven't already. A disability before retirement can wipe out years of savings progress — disability insurance is the most under-purchased protection by working adults.
Run a Social Security projection at ssa.gov to see your estimated benefit at different retirement ages. This is one of your most valuable retirement assets and should be factored into your overall plan alongside portfolio savings.
Fidelity's guideline: 3x your annual salary. Schwab suggests 2.5x. If you earn $80,000, target $200,000–$240,000 saved by 40. If you're behind, increasing contributions by even $300/month now can add over $280,000 by age 65 at 7% returns.
Yes, with commitment. Maxing 401(k) contributions ($23,500/year in 2026) for 25 years at 7% returns generates approximately $1.6 million — before any existing savings. Add an IRA and possible employer match and $2 million+ is very achievable from a standing start at 40.
Most advisors recommend 70–80% equities, 20–30% bonds at 40. A simple approach: choose a target-date fund with your expected retirement year (e.g., 2050 Fund) and it handles the allocation and glide path automatically. Rebalance annually if managing your own portfolio.