At 55, many people are about 10 years from retirement and may wonder how much they should have saved to support their desired lifestyle. Comparing your savings to different benchmarks can help guide your retirement decisions. And a financial advisor can work with you to assess your progress, identify gaps and adjust your plan to stay on track.
How Much Should I Have in Retirement Savings at 55?
According to Fidelity’s retirement guidelines, a person should save about seven times their annual salary by age 55. That means if you earn $100,000 per year, your target savings should be around $700,000. These benchmarks assume retiring at 67 and keeping a similar lifestyle. The amount you should save depends on your expenses, goals and expected retirement income.
Key Factors to Consider for Your Nest Egg
When calculating the size of your nest egg, there’s no one-size-fits-all amount. The right retirement balance at age 55 will depend on several important factors:
- Your planned retirement age. If you plan to retire early, you’ll need more saved by 55 than if you intend to work until 70.
- Your lifestyle and spending needs. Do you envision a modest retirement or one filled with travel, hobbies and leisure? The more you plan to spend, the higher your retirement goals should be.
- Health and expected medical costs. Medicare eligibility starts at 65, so retiring earlier may mean paying out-of-pocket for private insurance in the interim. This can be costly if you have chronic or complex medical conditions.
- Social Security and other income sources. Your Social Security benefit will be a key part of your retirement income. If you expect to receive a pension, rental income or other earnings, your savings requirements may be lower.
- Investment strategy and market conditions. Your retirement portfolio impacts how long your savings last. A diversified mix of equities and bonds tailored to your needs is essential for growth and stability.
What If I’ve Fallen Short?
If you’re 55 and your retirement savings are below the suggested benchmark, you’re not out of options. You still have time to make meaningful progress over the next 10 to 15 years if you plan accordingly. Here are three things to consider if you’ve fallen short.
Boosting Contributions
One of the most effective strategies at 55 is to maximize your retirement account contributions. For 2025, the maximum 401(k) contribution for individuals aged 50 and older is $30,500. For IRAs the limit is up to $8,000. If you’re not already taking advantage of these limits, increasing your savings rate can significantly impact your retirement readiness.
Suppose you’re 55 and earning $90,000 per year with $200,000 saved so far. If you contribute $25,000 annually for the next 10 years and earn an average 6% return, you could grow your savings to more than $687,000 by age 65, and that’s without accounting for employer matches or Social Security benefits.
Delaying Retirement
Working until age 67 or even 70 gives you more time to contribute to your retirement accounts, benefit from compounding returns and postpone withdrawals, all of which reduce the strain on your savings.
Delaying also boosts your Social Security benefits. If you were born in 1970, your full retirement age is 67. However, if you wait until age 70 to claim, your monthly benefit could be up to 24% higher than if you claimed at 67, and as much as 77% higher than if you started benefits early at age 62.
Delaying retirement may also offer the flexibility to phase into part-time work, continue receiving employer health insurance or avoid tapping into your accounts until required minimum distributions begin at age 73.
Reallocating Investments
At 55, your investment portfolio should begin to shift from a growth-heavy approach to a more balanced strategy that also prioritizes capital preservation. The goal is to maintain growth potential while reducing volatility. Asset allocation — the mix of stocks, bonds and other investments — is key.
While a 35-year-old might have 80% or more in stocks, a 55-year-old nearing retirement might consider something closer to 60% stocks and 40% bonds, or even 50/50, depending on their risk tolerance and retirement timeline. Stocks offer growth, while bonds and cash equivalents provide stability and income.
A financial advisor can help you develop a custom allocation strategy that adjusts over time. This might include adding dividend-paying stocks, municipal bonds or even target-date funds that automatically rebalance as you age.
Bottom Line
If you’re wondering how much retirement you should have at 55, aiming for about seven times your annual salary is a widely accepted benchmark, but it’s just a starting point. Your ideal retirement savings amount will depend on your goals, expenses, income sources and how long you plan to keep working. If you find you’ve fallen behind, increasing contributions, adjusting your strategy and refining your goals can help ensure that you’re well prepared when the time comes to leave the workforce.
Tips for Retirement Planning
- A financial advisor can help keep your retirement plan on track. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- SmartAsset’s Social Security calculator can help you estimate future monthly government benefits.
- Mandatory distributions from a tax-deferred retirement account can complicate your post-retirement tax planning. Use SmartAsset’s RMD calculator to see how much your required minimum distributions will be.
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