Investment Guide

What Percentage of Your Income Should You Save at Every Age?

By admin
17 June 2025
3 mins read

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What Percentage of Your Income Should You Save at Every Age?

As you move across the various stages in life, your financial goals and dreams may also keep changing. You'll have a different target to achieve at each stage. This is why it becomes extremely important to draw up an adequate savings plan and stick to it. However, this is often easier said than done, primarily because most people have little to no idea about how much to save. If you're in the same boat, then this guide will help you chalk up an age-related savings framework.

Average Savings by Age: How Much to Save at Every Age?

Before we move on, it is important for you to understand that these values and percentages of income are merely averages. Technically, there are no clear-cut rules with respect to the percentage of income that you should save at every age since it basically depends on your individual financial goals and objectives. The following pointers are only meant to serve as a guidepost that can help you chart out your own plan.

Age group	Average savings
Under 35	Rs. 17 lakhs
35-44	Rs. 34.5 lakhs
45-54	Rs. 59 lakhs
55-64	Rs. 60.2 lakhs
65-74	Rs. 83 lakhs
75+	Rs. 68.7 lakhs

Saving Amount for Retirement by Age

Depending on your age, it is recommended to have the following amount saved for retirement:

Age	Amount
30 years	1x of total salary
40 years	3x of total salary
50 years	6x of total salary
60 years	8x of total salary

What Is the 50/30/20 Monthly Budget and How Can It Help You Save Money? (With Example)

The 50/30/20 rule helps you manage your monthly income. Here's how it works:

50% of your income should go toward needs like rent, groceries, etc.
30% goes toward wants like dining out, entertainment, etc.
20% should be saved or invested for future goals and emergencies.

Example:

Age Group	Median Monthly Salary (Rs.)	50% (Needs)	30% (Wants)	20% (Savings)
20–24	Rs. 25,000	Rs. 12,500	Rs. 7,500	Rs. 5,000
25–34	Rs. 40,000	Rs. 20,000	Rs. 12,000	Rs. 8,000
35–44	Rs. 60,000	Rs. 30,000	Rs. 18,000	Rs. 12,000
45–54	Rs. 65,000	Rs. 32,500	Rs. 19,500	Rs. 13,000
55–64	Rs. 60,000	Rs. 30,000	Rs. 18,000	Rs. 12,000
65 and up	Rs. 50,000	Rs. 25,000	Rs. 15,000	Rs. 10,000

Compounded Savings by Age 65 Based on the Age You Started

Starting Age	5% Savings Rate (Rs.)	10% Savings Rate (Rs.)	15% Savings Rate (Rs.)
25	Rs. 4.78 crore	Rs. 9.56 crore	Rs. 14.34 crore
35	Rs. 2.44 crore	Rs. 4.88 crore	Rs. 7.32 crore
45	Rs. 1.14 crore	Rs. 2.28 crore	Rs. 3.42 crore

Conclusion

Now that you know how much to save, there's another major point that you should make note of. The above-mentioned age-related savings framework are merely rules of thumb that can be flexed around a little. Always remember, these guidelines only serve to help you put things in perspective. To save up adequately, you need to diversify your investment portfolio. And here's where the Moneyfy app by Tata Capital can help. You can use the app to start SIPs, invest in equity mutual funds, governmental bonds, liquid funds, instant redemption funds and more from the comfort of your smartphone. That's not all. You can even account for your investment horizon, keep an eye on your portfolio, and instantly redeem your funds if needed using the investment app by Tata Capital.

Download Moneyfy App

FAQs

How much should a 30-year-old have saved?

The amount a person should have saved by 30 depends on their income, expenses, goals, and lifestyle. A good rule of thumb is to double the amount of your annual income saved and have any debts repaid.

How much should be the average savings of a 40-year-old in India?

By the time an individual reaches their 40s and 50s, retirement is one of the main saving goals. It is important to have between three to four times your annual salary saved.

Is 20% too much to save for retirement?

No, saving 20% of your income for retirement is ideal, especially if you start in your 20s or early 30s. This will help you create a stronger retirement corpus over time.

What is a good retirement income in India?

A good retirement income should be around 70–80% of your pre-retirement income. This will help you comfortably maintain your lifestyle. For instance, if you earn Rs. 1 lakh per month today, you should aim for an income of Rs. 70,000 to Rs. 80,000 after retirement.