Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDaniel LibertoFri, July 3, 2026 at 10:05 PM GMT+2 5 min readRetirement savings gaps often start early, but workers in their 20s still have time to adjust.Credit: Milan Markovic / Getty ImagesKey TakeawaysMost workers save less than the recommended 15% for retirement, and the gap often starts early.Raising contributions in your 20s or 30s gives your money more years to grow.Debt, retirement plan loans, and cash-outs after job changes can make it hard to stay on track.Retirement isn't something most people in their 20s and 30s spend much time thinking about. At that age, it's decades away, and there often isn't much money left after covering expenses and nearer-term priorities, such as saving for a home, paying for a vacation, or simply getting by.But putting retirement savings on the back burner could make it harder to catch up later. New data suggests many younger workers are falling short of common savings targets, potentially leaving them less prepared for the future than they expect.Most Workers Are Saving Less Than Experts RecommendIt's not just younger workers who are falling behind on retirement savings. According to J.P. Morgan, workers across every generation are saving less than commonly recommended targets.Drawing on data from more than 12 million participants in defined contribution plans, which largely include 401(k)s, the study found that average contribution rates start below 5% for workers in their 20s and peak at around 8% as they near retirement.That's well below what financial planners recommend. A common guideline is to save at least 10% of your salary, yet only about one in six plan participants ever reach that threshold. Some experts now recommend saving closer to 15% of income, including employer matches, to stay on track for retirement.Higher salaries don't change the picture much, either. Even among the top third of earners—across all age groups—just 22% ever reach a double-digit savings rate.But being on track isn't just about hitting a threshold—it's also about consistency and gradually increasing contributions over time. J.P. Morgan found that someone who starts saving at 25 with a 5% contribution rate, gradually increases it to 8%, and maintains the higher rate over a 40-year career could generate roughly $84,000 more in additional savings than someone who sticks with 5%.Why This MattersStarting to save for retirement early gives workers more time to benefit from long-term investment growth. Even small contribution increases in your 20s and 30s can have a much bigger impact than waiting until later in life to save more.Younger Workers Are Missing a Key Window to Get AheadJ.P. Morgan's analysis found that workers in their early-to-mid 20s contribute between 3.7% and 4.5% of their income toward retirement. Those in their late 20s through early 40s do only slightly better, saving between 4.6% and 6.1%.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info