Here’s how many Americans in their 40s have in their 401 (k) accounts

The sooner you start saving for retirement, the better.

Many people put off their careers of saving for retirement early due to the distance from future retirement, but experts say that starting to save early can make a huge difference in the amount of retirement.

To help you know if you’re on the right track, retirement plan provider Fidelity has set benchmarks for what you should have saved at each age. At 40, Fidelity recommends having three times your salary set aside.

If you earn $ 50,000 a year, you should aim to have $ 150,000 in retirement savings by age 40. If your annual salary is $ 100,000 per year, you should aim for savings of $ 300,000.

The average 401 (k) balance for Americans aged 40 to 49 is $ 120,800 in the fourth quarter of 2020, according to data from Fidelity’s retirement platform.

Americans in this age group contribute an average of 8.9% of their salary.

Storing three times your salary may seem daunting, but starting by saving just 1% or 2% of your salary and gradually increasing that number over time can help you build your retirement savings.

And if your employer offers a match, try to contribute enough of your salary to qualify for full match. It’s basically free money.