I’m 44 With $2 Million in Retirement Savings. Am I Behind?

Without revealing my exact age, most of my friends, at this point, are roughly in their late 30s to late 40s/pushing 50. That means the majority aren’t on the cusp of retirement, but are far enough along in their careers to be thinking about it.

Unfortunately, I know for a fact that a good number of them are way behind on retirement savings. One of my friends, for example, barely has $50,000 in retirement savings between her and her spouse despite both of them being in their mid-40s with decent salaries (they tend to blame their childcare costs, but I think they’re mostly making excuses).

So when I came across this Reddit post asking if a $2.1 million investment portfolio at age 44 was up to par, I almost laughed. My first reaction was, “Yes, buddy, you’re doing just fine.”

But I also recognize that a lot of people have anxiety over the amount of money they’re saving, even if they’re doing really well. So I think this Redditor ought to know just how ahead of the curve they are.

An impressive feat

Fidelity recommends having three times your salary saved by age 40 and six times your salary by age 50. So if we do the math, a good goal is to have about 4.5 times your salary by age 44. Chances are, $2 million more than meets that goal, unless you happen to be an extraordinarily high earner.

By contrast, the Federal Reserve found that as of 2022, the average retirement savings balance among 35- to 44-year-olds was about $142,000. Among 45- to 54-year-olds, it was about $313,000.

Now to be fair, recent stock market gains have likely driven these averages upward since that 2022 data was pulled. However, even when accounting for that, the average retirement savings balance among 44-year-olds is nowhere close to $2 million. So if that’s what your nest egg looks like, consider yourself to be in a great place — especially if you aren’t making plans to retire early.

It still pays to keep saving

I think the Reddit poster here should feel good about what they’ve saved so far. But I’d also encourage them to continue saving at a strong rate, and even increase their savings if they’re able to do so.

The way I see it, you never know what expenses might arise in retirement, so it’s never a bad idea to have a larger cushion. I’d also suggest that the poster consult a financial advisor if they’re feeling at all uneasy about their personal economic situation given the position they’re in.

As for my friends who have been seriously slacking on the retirement savings front, I hope you’re reading this, because you, too, should probably speak to a financial advisor to get back on track. But also, I don’t think my late 30- or 40-something friends need to panic per se. Anyone with a good 20 years left in the workforce is in a great position to build decent savings, provided they take the “better late than never” approach.

But also, if you’re someone who’s already been working for about 20 years or longer with minimal savings, it means you may need some help managing your earnings and setting priorities. So don’t wait to go out and get that help before you go another year with minimal to nonexistent retirement plan contributions.