Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC will update as changes are made public.
They say your 50th birthday is a milestone one, but it may feel like a lot. You're at the height of responsibility: kids, a mortgage, college, impending retirement. No matter whether your goals have stayed on path or gone a bit off track, approaching 50 has its financial challenges for everyone.
If you have been building a family over the last decade or so, the support you've given to your children — food, school, housing expenses — can make a big dent in any savings you had set aside over the years. And by age 50, you've probably navigated your fair share of life's curve balls.
But if you want to remain focused on retiring at 67, it takes some discipline in the years ahead. In fact, according to retirement-plan provider Fidelity Investments, you should have 6 times your income saved by age 50 in order to leave the workforce at 67. The Bureau of Labor Statistics' most recent Q3 2020 data shows that the average annual salary for 45- to 54-year-old Americans totals $60,008. If you take 6 times that annual salary, it would mean having $360,048 saved.
Although this guideline includes your retirement contributions and your investments, in addition to any cash savings, for many it can still be a difficult goal to reach. In a 2020 TD Ameritrade report, surveying 2,000 U.S. adults ages 40 to 79 with at least $25,000 in investable assets, nearly two-thirds of 40-somethings have less than $100,000 in retirement savings.
To think ahead if you are not yet close to your 50th birthday, or to dial back on your spending if you are, CNBC Select looks at how to save during these busy years.
How to preserve your savings as you near age 50
A 2018 "Financial Journey of Modern Parenting" report by Merrill Lynch found that 72% of the 2,500-plus American parents surveyed said that they had put their children's interests ahead of their own need to save for retirement.
While parents need to support their children in their early stages, teaching them about money as they get older can help prevent your retirement savings from running dry. As they grow, you can equip them with the basic financial tools they need, like a checking and savings account, to help them establish financial independence.
If you have a student in your family (high school, college or vocational programs), consider helping them open a student checking account so that they learn about spending and saving early.
The Capital One MONEY Checking Account, which CNBC Select ranked best for teens, is a good starter account. Any child 8 to 18 can be a joint account holder with their parent or legal guardian and there is no minimum to open an account. Account holders also earn 0.10% APY on all balances. To monitor their kids' spending, parents and legal guardians on the account can set up text alerts and email notifications for card transactions and account activity.
Capital One MONEY Teen Checking
Annual Percentage Yield (APY)
0.10% APY
Minimum deposit/balance
None
Monthly maintenance fee
None
Overdraft fee
None
ATM access
70,000+ fee-free ATMs nationwide; no ATM fee reimbursement
Terms apply.
For your college student, consider looking into the Chase College Checking℠ Account*. The account comes with zero monthly service fees while enrolled in college or a vocational, technical or trade school, up to the graduation date provided at account opening (five years maximum) for students 17-24 years old (after, the monthly fee is currently $12, which can be waived; rising to $15 effective 8/24/25) and no deposit requirements. New account holders can currently earn $100 after completing 10 qualifying transactions within 60 days of their account opening (offer ends 10/15/2025) and take advantage of quick transactions at more than 15,000 fee-free Chase ATMs and more than 4,700 branches across the U.S.
*The Chase College Checking℠ Account is no longer available for new account openings.
Chase College Checking℠
Annual Percentage Yield (APY)
None
Minimum balance
Keep an average ending day balance of $1,500 or more in your checking account to waive monthly service fee
Monthly fee
$0 Monthly Service Fee for students 17 to 24 years old at account opening, enrolled in college or a vocational, technical or trade school, up to the graduation date provided at account opening (five years maximum) or $12 Monthly Service Fee
Free ATM network
With over 4,700 branches, Chase has the largest branch network in the U.S. plus access to more than 15,000 ATMs.
ATM fee reimbursement
None
Overdraft fee
With Chase Overdraft Assist℠, Chase doesn't charge an Overdraft Fee if you're overdrawn by $50 or less at the end of the business day OR if you're overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day (you have until 11 PM ET, 8 PM PT, to make a deposit or transfer). Chase Overdraft Assist does not require enrollment and comes with eligible Chase checking accounts
Mobile check deposit
Yes
Terms apply.
JPMorgan Chase Bank, N.A. Member FDIC
Bottom line
In the decades before retirement, start helping your kids step towards financial independence. As they do, focus intently on your savings so that you can get as close as possible to having 6 times your income set aside by age 50.
Make an effort to continue living within your means so that, as your income increases, your spending stays the same — leaving more to go toward your retirement contributions each year.
