The Shocking Savings Targets for Every Age Group
New research from Fidelity Investments reveals exactly how much each generation needs to save monthly to achieve a comfortable retirement. The figures assume no existing savings and account for compound growth over time.
Monthly Savings Targets by Age
Age Monthly Savings Needed Why It Matters
20s £500 Early starters benefit most from compound interest
30s £841 Still time to build wealth, but urgency increases
40s £1,703 Critical decade – late starters face steep climb
50s £4,508 Last chance to make major retirement preparations
Why Starting Early Makes All the Difference
A 25-year-old saving £500/month at 6% annual growth could accumulate £1.1M by 65
Waiting until 35 means needing £841/month for the same result
Delaying until 45 requires £1,703/month – over 3x the 20s amount
Emma-Lou Montgomery, Associate Director at Fidelity International, explains:
“The power of compounding means early savers need to put away significantly less. Those who delay face much steeper monthly targets.”
3 Action Steps for Every Generation
1. In Your 20s-30s
✅ Start immediately – even small amounts grow substantially
✅ Take full advantage of employer pension matches
✅ Invest in growth-focused assets (80% equities)
2. In Your 40s
🔍 Conduct a retirement gap analysis
⚖️ Balance growth and stability (60% equities, 30% bonds)
💸 Maximize tax-efficient savings (ISAs, pensions)
3. In Your 50s
⏱️ Consider catch-up contributions (use annual allowance)
🛡️ Gradually shift to more conservative investments
📅 Plan withdrawal strategies (annuities vs. drawdown)
What Counts as a ‘Comfortable’ Retirement?
The research assumes:
Single retiree: £23,300/year
Couple: £34,000/year
Includes leisure, holidays, and unexpected costs
Bottom Line: Time Is Your Greatest Asset or Worst Enemy
Best case: Start in 20s with £500/month
Worst case: Delay until 50s and need £4,500/month
Expert Tip: Use pension calculators regularly to stay on track as your circumstances change.
