What Is the Average Investment by Age?

Investing is one of the most effective ways to grow wealth over time. Instead of working for every dollar you earn, investing allows your money to generate additional returns on its own.

As you know, inflation gradually reduces the purchasing power of money. Simply leaving cash idle means it slowly loses value over time. Investing gives your money the opportunity to outpace inflation and grow while you don’t need it.

There are many investment options available today. Stocks and cryptocurrencies have become especially popular in recent years. In both cases, investors purchase assets with the expectation that they will appreciate in value or generate income over time. For many people, the ultimate goal is building enough wealth to enjoy a comfortable retirement.

The amount someone should have invested varies based on factors such as age, career, income, and location. As a result, any estimate of the “average investment by age” should be viewed as a guideline rather than a strict rule.

Average Investment by Age

Age 30

By age 30, many professionals have settled into their careers and are progressing into intermediate-level positions.

A common rule of thumb is to have savings equal to roughly one year’s salary, with approximately half of those savings invested in long-term assets.

In the United States, the median annual salary for a 30-year-old is approximately $40,560. Using this guideline:

• Total savings: $40,560
• Amount invested: $20,280

Assuming an average annual return of 5%, that investment could generate approximately $1,014 per year.

Age 40

By age 40, many professionals have reached senior positions and may also be supporting a family.

A common benchmark is to have savings equal to twice your annual salary, with roughly half invested.

With a median annual salary of approximately $53,210:

• Total savings: $106,420
• Amount invested: $53,210

At a 5% annual return, that investment would generate roughly $2,660 per year.

Age 50

By age 50, retirement planning becomes increasingly important. Health concerns, lifestyle changes, or early retirement may all become realistic considerations.

Many financial planners recommend having three to five times your annual salary saved by this stage, with about half invested.

Using a median salary of $56,001:

• Savings goal: $224,004
• Amount invested: $112,002

At a 5% annual return, this portfolio could generate approximately $5,600 annually.

Age 60

By age 60, retirement is often just around the corner.

Investment targets vary significantly depending on retirement plans, expected expenses, and desired lifestyle. A common guideline is to have six to ten times your annual salary saved.

Using the median U.S. salary for this age group:

• Savings goal: $414,888
• Amount invested: $207,444

At a 5% annual return, those investments could produce approximately $10,372 per year.

Those planning for a more expensive retirement—including extensive travel or costly hobbies—may aim for $1 million or more in retirement savings. Depending on investment performance, this could generate $20,000–30,000 annually without touching the principal.

Closing Thoughts

The investment figures above are not absolute targets—they’re simply general guidelines. Actual savings and investment needs vary widely depending on your profession, income, location, and financial goals.

The most important habit is consistency. Saving and investing a portion of every paycheck can, over time, compound into substantial wealth.

If you’re looking to put your money to work, PennyWorks offers a DeFi-based alternative to the low yields traditionally associated with savings accounts.

Built for investors who want their money to do more, PennyWorks provides access to opportunities designed to deliver higher earning potential while giving users greater transparency and control than traditional financial institutions.

If you’re ready to start growing your investments, explore what PennyWorks has to offer.