This is how much you should have saved by 35 if you earn more than $100,000 – are you on track?

If you’re 35, have a solid paycheck from your day job, and are thinking of retiring early, maybe in a few years, you may have options. Indeed, the FIRE (Financial Independence, Early Retirement) movement popularized by Millennials a few years ago may have become somewhat less achievable after the inflationary years we’ve been through.

Even if inflation returns to normal, the past few years of rising prices aren’t going anywhere. Indeed, inflation appears to be a one-way street. Essentially, the damage has already hit, unless we’re in for several years of deflation by the end of the decade.

While a period of deflation seems unlikely, there is a non-zero chance that it will happen, especially if productivity gains from artificial intelligence (AI) start to materialize as firms take a deliberate returns-based approach to future bets.

If you’re 35 and want to embrace FIRE or lean FIRE, which involves part-time work, you shouldn’t just rely on external factors.

Even though you can theoretically (semi-)retire early, you might not want to do it at the still young age of 35. Maybe you love your job or want to explore a career change without worrying about the financial repercussions.

However, financial freedom is just that: freedom.

Whether you’re on track as a 35-year-old or miles ahead if you’re considering Lean FIRE or something similar, shooting for financial freedom and flexibility is a worthy goal!

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How much should a 35-year-old have saved by now?

According to Fidelity’s retirement savings guide (a pretty good roadmap to check out to see how you’re doing), you should have about twice your annual salary saved by age 35 and be on your way to be removed three times by the age of 40.

So if you’re a 35-year-old man pulling in $100,000 a year and have more than $200,000 saved in retirement accounts, then congratulations because you’re not only on track, you’re a little ahead, at least according to Fidelity. If you’re looking for more exact numbers, Edward Jones states that a 35-year-old earning $100,000 a year should have between $140,000 and $205,000 in savings.

Of course, if you want to retire earlier than the traditional age of around 60, you should have a whole lot more, especially with the cost of living still high from the inflation of the last couple of years. And if your wages are more or less the same as they were before inflation hit more than three years ago, you may feel like you’re falling behind on the ambitious goals needed to embrace the FIRE movement.

What if you haven’t saved twice your income?

If you’re not close to having twice your income in savings, don’t worry. Time is still on your side. You can budget accordingly in a way that pays you first (stop me if you’ve heard this before!), increase your income (not so easy to do these days!) or invest in long term if you haven’t. already done it.

Indeed, investing in high-quality stocks can help you harness the powerful power of compounding. And since time is on your side, I wouldn’t worry if you’re 35 and behind on your savings. There is plenty of time to change things.

Plus, you may not be in your prime earning years yet! So keep your chin up and play the long game! You’re not the only Millennial who doesn’t have the recommended amount saved for retirement!

What about early retirement?

Unless you live incredibly frugally and choose not to have children, getting a full FOC can be extremely difficult. Even if you can theoretically afford to retire at 35, you might not want to. Indeed, there are countless stories of people comfortably retiring in their 30s only to return to the workforce, not because they have to for financial reasons, but because the lifestyle may not be for them.

Sure, some early retirees might be bored, but others might find they’d be happy to look for meaningful work while still in their working years. However, initially choosing Lean FIRE may make more sense so that you can test the adjustment gradually rather than preparing for a shock.

Either way, you have so many options and an ever-increasing amount of financial freedom as you take steps to build your nest egg. Perhaps the best thing a 35-year-old can do to push his savings to excess is to invest. The sooner the better.

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