How Much Should I Have in My 401k Plan by 35?

No amount is ever enough when it comes to saving for your retirement. This goes for any individual at any age. So if you have already made the wise decision of investing in 401k and you are in the mid-’30s or 35 to be precise, this goes for you too. We would like to tell you that it is virtually impossible to come with a single amount that every 35 year old should have already saved in his/her 401k plan to guarantee a happy and secure retirement life. But what is possible is to come up with an amount after looking at some of the golden rules that the experts recommend for How Much Should I Have in My 401k Plan by 35? However, don’t forget to consider the following key points while making this important decision.

  • Your current lifestyle
  • Any loans that you have to wave off
  • Emergency savings for medical expenses

How Much to Have in My 401k Plan at 35?

At 35 most of us have already started working, paid off our student’s loan and are hopefully looking forward to a settled life. It is common to have already started with a retirement plan in the early ’30s. So, this makes sense if you are thinking about how much should be in your 401k plan at 35. Though some of the experts recommend that you should have anywhere between $50,000k to $67,000 already saved by this time, a precise amount is difficult to quote. Yet the rules below given by some of your experts might help you decide on this.

  • Rule I – One of the thumb rules to find out how much should be there in an account at 35 is following the 10% rule which says you should be saving at least 10% of your annual salary. So estimate 10% of your salary each year since your first paycheck to calculate how much should you have already saved by now.
  • Rule II – Another rule that you can follow is the 50/20/30 rule. This says that 50% of what you earn can go for basic needs like food and shelter. 30% of your income can be used for fun and luxuries like vacations, gym and entertainment. At the same time, at least 20% of it should go to the savings.
  • Rule III – This one tells that at 35, you should have at least 4x of your annual expenses income saved in your bank account. This is taking into consideration, the future inflation rates. So if you don’t already have saved this amount in your account you might want to reconsider your plan.

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