Here’s how much the average American has in their retirement savings by age (2024)
(NEXSTAR) – While many Americans want to retire comfortably, it’s a goal that may seem out of reach for some struggling to save due to the rising costs of housing and everyday expenses.
According to a recent AARP survey, about 1 in 4 U.S. adults aged 50 and older say they never expect to retire and 70% are concerned about prices increasing faster than their income.
For those who plan to stop working, determining the right amount of money to set aside can be tricky as several factors come into play, like your spending habits, lifestyle, and location.
A GoBankingRates study, for example, found that you’d need over $1.1 million to fund a 25-year retirement in Miami, Florida, compared to nearly $570,000 in McAllen, Texas – based on the annual cost of groceries, housing, utilities, transportation, and healthcare costs.
One way to benchmark your savings is to see how you compare with others in your age range, though, as Edwards Jones points out, it won’t “tell you how close you are to your goal.”
“The relevant data point isn’t what others your age have saved but how much money you need yourself. The answer depends almost entirely on you, your habits now and your plans for later,” the financial services firm noted on its website.
Below are the median amounts for individuals, categorized by age:
Age Range
Median Retirement Savings
Under 35
$18,880
35-44
$45,000
45-54
$115,000
55-64
$185,000
65-74
$200,000
75 or older
$130,000
The average retirement savings account balance for all families is higher, at $333,940, since the wealthiest households tend to drive the average up. This also applies to individual account balances, as illustrated in the following table.
It says by age 30, you should aim to have the equivalent of one year’s salary saved. So, if your annual salary is $60,000, your 401(k) balance should ideally be $60,000.
Here’s the full guideline from Fidelity:
By age30:Save 1x your income
By age35: Save 2x your income
By age 40:Save 3x your income
By age 45: Save 4x your income
By age 50:Save 6x your income
By age 55: Save 7x your income
By age 60:Save 8x your income
By age 67: Save 10x your income
However, it’s important to remember that while this can be a useful tool, it’s not a mandate.
“These milestones are aspirational. You likely won’t meet all of them,” Fidelity explained on its website. “But they can serve as goalposts to help you make a plan to save enough to maintain your lifestyle in retirement.”
The Associated Press and Nexstar’s Addy Bink contributed to this story.
Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Believe it or not, according to the 2022 Survey of Consumer Finances, only 9% of American households have saved half a million dollars or more for retirement. That's right, less than one in 10 families has reached this milestone.
Believe it or not, according to the 2022 Survey of Consumer Finances, only 9% of American households have saved half a million dollars or more for retirement. That's right, less than one in 10 families has reached this milestone.
Employee Benefit Research Institute (EBRI) data estimates that just 3.2% of Americans have $1 million or more in their retirement accounts. Here's how much most Americans have saved and what you can do to boost your retirement savings. Don't miss out: Click to see our list of best high-yield savings accounts.
The Federal Reserve also measures median and mean (average) savings across other types of financial assets. According to the data, the average 70-year-old has approximately: $60,000 in transaction accounts (including checking and savings)$127,000 in certificate of deposit (CD) accounts.
Among all adults, median retirement savings are $87,000, according to the most recent Federal Reserve Survey of Consumer Finances (SCF) data. Of course, these figures reflect the situation of people who have retirement accounts, though about a quarter of Americans don't.
The poll also found that among those who have been saving for retirement, 6.7% have saved between $10,000 and $49,999, 12.6% have saved between $50,000 and $99,999, 12% have saved between $100,000 and $199,999, 9.9% have saved between $200,000 and $299,999 and 16.5% have saved $300,000 or more.
Americans say you need a net worth of at least $2.5 million to feel wealthy, according to Charles Schwab's annual Modern Wealth Survey, which surveyed 1,000 Americans ages 21 to 75 in March 2024. That's up slightly from $2.2 million, compared with last year's survey results.
The overall retirement savings for the wealthiest 1% stand at approximately $2.3 million. When considering a broader definition of retirement assets, the figure escalates to $5 million.
For example, if you have retirement savings of $1 million, the 4% rule says that you can safely withdraw $40,000 per year during the first year — increasing this number for inflation each subsequent year — without running out of money within the next 30 years.
Your net worth is what you own minus what you owe. It's the total value of all your assets—including your house, cars, investments and cash—minus your liabilities (things like credit card debt, student loans, and what you still owe on your mortgage).
Moving to the 90th percentile, retirees have a net worth of approximately $1.9 million. Those in this category can consider luxury vacations, set up college funds for grandchildren and make significant charitable donations. Their financial situation allows for greater comfort and less concern about daily expenses.
The ideal monthly retirement income for a couple differs for everyone. It depends on your personal preferences, past accomplishments, and retirement plans. Some valuable perspective can be found in the 2022 US Census Bureau's median income for couples 65 and over: $76,490 annually or about $6,374 monthly.
Social Security offers a monthly benefit check to many kinds of recipients. As of July 2024, the average check is $1,782.74, according to the Social Security Administration — but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.
What are the average and median retirement savings? The average retirement savings for all families is $333,940, according to the 2022 Survey of Consumer Finances. The median retirement savings for all families is $87,000. Taken on their own, those numbers aren't incredibly helpful.
According to estimates based on the Federal Reserve Survey of Consumer Finances, a mere 3.2% of retirees have over $1 million in their retirement accounts. The number of those with $2 million or more is even smaller, falling somewhere between this 3.2% and the 0.1% who have $5 million or more saved.
Yes, it is possible to retire comfortably on $500k. This amount allows for an annual withdrawal of $30,000 and below from the age of 60 to 85, covering 25 years. If $20,000 a year, or $1,667 a month, meets your lifestyle needs, then $500k is enough for your retirement.
Data from the Employee Benefit Research Institute, which utilizes the Federal Reserve's Survey of Consumer Finances, indicates that only about 0.1% of retirees have over $5 million saved for retirement. Additionally, about 3.2% have savings exceeding $1 million.
Retiring with $500,000 could sustain you for about 30 years if you follow the 4% withdrawal rule, which allows you to use approximately $20,000 per year. However, retiring at a younger age will likely reduce the amount you receive from Social Security benefits.
Address: Suite 228 919 Deana Ford, Lake Meridithberg, NE 60017-4257
Phone: +2613987384138
Job: Chief Retail Officer
Hobby: Tai chi, Dowsing, Poi, Letterboxing, Watching movies, Video gaming, Singing
Introduction: My name is Zonia Mosciski DO, I am a enchanting, joyous, lovely, successful, hilarious, tender, outstanding person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
