Can you save too much money for retirement? How much should you have saved by the time you retire? How much is too much? 

These are all good questions, and Derek Moneyberg will answer them for you. Derek knows it can be hard to have enough money today while also saving for tomorrow, but as he always says, “Financial success is a lifestyle choice.” 

Am I Saving Too Much for Retirement?

Chances are slim that you’re already saving too much for retirement, especially if you plan on leaving work earlier than the average 62-year-old U.S. retirement age (even though the official Social Security retirement age is 67 years old).

To gauge yourself against the average American in 2019, here’s a breakdown by age of average 401(k) balances:

  • Ages 20–29 = $10,500
  • Ages 30–39 = $38,400
  • Ages 40–49 = $93,400
  • Ages 50–59 = $160,000
  • Ages 60–69 = $182,100
  • Ages 70–79 = $171,400

Remember, this is how much people actually have saved, not what they should. How do you compare to your peers? If you have less, the same, or even significantly more than these amounts (according to your age), you’re definitely not saving too much for retirement. 

By Age, How to Know If Your Retirement Saving Is on Track

Depending on your age, let’s move on to how much you should save for retirement to stay on track. There are a couple of methods to calculate this amount. Let’s go over each of them. 

But consider this: Retirement funds only cover typical living expenses, not fun money or emergency expenses. Factor that in when you are doing your long-term financial planning.

The 80% Rule 

Some people think this is an old-school, overly simplified way to determine a retirement savings goal, but here it is: Save the equivalent of 80% of your pre-retirement salary. So, if you make $50,000 a year now, you need $40,000 for every year of retirement to keep your same standard of living. If you retire at age 62 and live until you’re 92, you’ll need 30 years’ worth of annual savings for a total of $1.2 million ($40,000 x 30 years). 

Based on Annual Wage

A common way to determine your retirement savings goal by age is to take your annual salary and multiply it by a certain number to get a total amount: 

  • Age 30 = 1x your annual salary
  • Age 40 = 3x your annual salary
  • Age 50 = 6x your annual salary 
  • Age 60 = 8x your annual salary

If you earn $60,000 per year, here are the total amounts you’ll want to see in your retirement savings at each stage of life:

  • Age 30 = $60,000
  • Age 40 = $180,000
  • Age 50 = $360,000
  • Age 60 = $480,000


One more method is to multiply your current salary by 10–12x. So, if you earn $60,000 and multiply it by 11, you should have $660,000 saved by retirement age. 

You may be thinking, “I’m not even close to having that much money saved for retirement!” But remember, this amount includes your 401(k), Social Security, and other assets. Besides, Derek helps you make more money so you can retire comfortably, early or not.  

How Much Is Too Much Money for Retirement?

Believe it or not, it is quite possible to save too much money for retirement. If you don’t have enough day-to-day income to…

  • Cover basic living expenses
  • Reduce your debt
  • Make the occasional splurge

…then you might be allocating too much money to your long-term goals rather than putting yourself in a solid financial position now.

But that’s not the only way to know if you have (or are calculated to have) too much savings in retirement. If you contribute the max amount to your 401(k) right from the beginning and make other good financial decisions (like investing responsibly), then you could end up with well over seven figures by the time you retire. 

But at what cost?

Reaching $1 million in savings is a worthy (and almost necessary) goal to reach, but doing so doesn’t come without costs. This doesn’t just mean paying off debt early or passing up on your dream vacation with your extra cash. We’re talking about how putting all your money toward retirement means saying no to other potentially much more lucrative investments. 

Some investments that are more lucrative than the 3%–8% interest you earn on your 401(k) could be:

  • Starting or scaling a business
  • Purchasing real estate
  • Investing in stocks
  • Investing in exchange-traded funds (ETFs)

While each option comes with a higher risk than simply investing in your 401(k), the long-term rewards can be significantly higher. Before you consider any of them in earnest, speak with a qualified professional and get trained on how to successfully build a powerhouse portfolio.

What Derek’s Clients Have to Say About Moneyberg Mentoring

It might be hard to believe, but some people really can reach their retirement savings goals well before they actually retire. “How is this possible?” you wonder. This answer is much more simple than you can imagine—financial planning and mentoring.

Derek’s clients agree. Check out just a few of the many video reviews for Moneyberg Mentoring:

  • This program has saved me easily 15 years of my life.
  • Thinking back in the past, there were so many times where I’ve literally lost tens of thousands, if not hundreds of thousands of dollars, not knowing this information.
  • He presents many different, very strategic and thorough examples of assessing risk, which led to conclusions that will save me costs in the six figures or seven figures even.
  • This is an extremely high-quality program; it’s an absolute must-attend for anybody serious about their success, their wealth, and their happiness.

Are you ready to take your retirement planning seriously to ensure you have all the cash you need later without giving up on other income opportunities now? If so, talk to Derek