What Financial Progress Looks Like at Every Age

Tom Gilmour is a senior director of Behavioral Insights and Psychology of Planning for Northwestern Mutual.

Have you ever wondered, “Am I behind financially?” If so, you’re not alone.

In fact, nearly half (47 percent) of working Americans say they’re earning more than ever but still feel like they’re falling behind, according to Northwestern Mutual’s 2025 Consumer Sentiment Survey. (The survey was a nationally representative probability poll of 2,511 adults conducted in November 2025.)

It’s an uncomfortable feeling. Especially when it seems like everyone else has things figured out. But financial progress rarely looks the way we expect it to. It isn’t a straight line, it doesn’t happen on a perfect timeline, and it almost never matches the comparisons we make in our heads.

Read on for tips to help give you a clearer picture of what progress can look like over time—no matter what stage of life you’re in—and how to think about your own momentum more honestly.

What financial progress actually looks like

One reason so many people feel behind when it comes to money matters is that many of us tend to measure progress by net worth, salary, and assets.

Among younger generations, some may also feel they haven’t made the same financial progress as their parents. According to the Consumer Sentiment Survey, nearly one-third (31 percent) of Millennials say they don’t have a savings account and that’s the case for 36 percent of Gen Z. Nearly half of Millennials and almost 70 percent of Gen Z also say they don’t have a retirement account and almost 80 percent of Gen Z and 66 percent of Millennials say they don’t currently have an emergency fund.

But real financial progress is often about behaviors, not just numbers.

For example:

• Saving consistently (even small amounts)
• Paying down debt over time
• Making more intentional spending decisions

In fact, 77 percent of people say they’re being more intentional about how they spend their money today, according to the Consumer Sentiment Survey. That’s progress—even if it doesn’t always feel like it.

Financial goals and milestones by age

These benchmarks can help give you context (and maybe some ideas)—but they’re not a scorecard.

Life isn’t one-size-fits-all. And neither is financial progress.

In your 20s: Building the foundation

Your 20s are less about having everything figured out and more about getting started.

So for you, progress might look like:

• Building your first emergency fund
• Setting up retirement accounts (even small contributions)
• Beginning to invest in diversified funds (while avoiding risky “meme/hype” investments)
• Starting to think about risk protection, such as life insurance and disability insurance
• Learning how to budget and manage debt, including eliminating credit card debt
• Establishing a credit history

At this stage, momentum matters more than accuracy. Even small steps can compound over time.

What matters most: Just getting started—not pursuing perfection.

In your 30s: Growing and balancing priorities

Your 30s are often marked by competing goals, such as career growth, family planning, and housing decisions. Progress might include:

• Savings equal to 1 times your salary and putting away 10 percent to 15 percent of your gross income
• Paying down student loans
• Maxing out tax-advantaged accounts including your 401(k), individual retirement arrangements (IRA), or health savings account (HSA)
• Reevaluate risk protection, such as life insurance and disability insurance
• Buying a home—keeping total monthly housing costs (mortgage, taxes, insurance and any HOA dues) around 25 to 30 percent of gross income.

Because people this age tend to have so much going on during this decade they tend to feel intense pressure—especially when comparing their lives to others.

What matters most: Making progress, even if it looks messy,

In your 40s: Building momentum

By your 40s, financial progress often means strengthening what you’ve already built.

That could look like:

• Savings equal to 3 times your salary and putting away 20 percent of gross income
• Avoiding higher spending as your income grows by increasing your automated savings
• Balancing short-term goals (like your kids’ college funds) with long-term ones (making sure your retirement accounts are on track)

This is also a stage where consistency starts to pay off.

What matters most: Staying steady.

In your 50s: Preparing for transition

In your 50s, progress shifts toward preparation.

You might focus on:

• Savings equal to 6 times to 8 times your salary
• Making catch-up contributions to retirement accounts
• Shifting portfolio allocation to reflect your time horizon, risk tolerance, income needs and ability to withstand market volatility.
• Reduce high-interest debtand create a thoughtful plan for for any remaining mortgage or other debt before retirement.
• Beginning to think about legacy planning

What matters most: Small adjustments can make a big difference.

In your 60s and beyond: Turning plans into income

At this stage in life, financial progress becomes about clarity and confidence.

That can include:

• Savings equal to 10 times your salary
• Creating a plan for income and withdrawals in retirement
• Deciding when to take Social Security
• Planning for health care and long-term care needs
• Considering final expenses

What matters most: Making what you’ve built work for you.

A better way to measure your progress

Remember, you don’t need to match someone else’s timeline or hit every milestone perfectly. Progress is different for everyone. The most important thing is understanding where you are and want to go next.

This is where your financial advisor can help. Together, you’ll look at:

• Resilience (can you handle financial setbacks?)
• Consistency (are you moving in the right direction?)
• Alignment (does your plan match your life?)

One of the biggest differences between people who feel on track and those who don’t is clarity. And having a financial plan is a big part of that.

According to the Consumer Sentiment Survey, roughly 20 percent of Americans have a financial advisor, dropping as low as 10 percent for Millennials and 5 percent for Gen Z. But those who do have an advisor are less inclined to feel behind despite earning more than ever (41 percent versus 49 percent) and are also less likely to spend everything they earn each month (22 percent versus 35 percent).

By looking at your finances with more purpose, it’s easier to stay on track and feel like you’re moving in the right direction. Because real financial progress isn’t about where you should be. It’s having a plan that works for you.