What Is the Average Retirement Savings by Age? - NerdWallet (2024)

MORE LIKE THISInvestingRetirement Planning

The desire to know how you're doing in relation to your peers is natural, and it may help kick-start more progress or give you a feeling of satisfaction.

While knowing the average retirement savings by age can give you something to compare with, keep in mind that it isn’t the best measure of how on track you are for retirement. Knowing your financial goals and estimating how much you’ll need for your ideal retirement are the best ways to identify and stay on track with your money goals.

» Learn more: See additional Retirement account statistics

AD

What Is the Average Retirement Savings by Age? - NerdWallet (1)

Get a custom financial plan and unlimited access to a Certified Financial Planner™

Custom financial plan tailored to your situation and goals

Access to a Certified Financial Planner™ via unlimited calls or messaging

Unbiased, expert financial advice for a low price.

CHAT WITH AN ADVISOR

NerdWallet Advisory LLC

Average retirement savings balance by age

Based on data from the 2022 Survey of Consumer Finances — the most recent version of that survey — the median retirement savings for all families is $87,000. The average retirement savings by age is:

Age group

Average retirement savings balance amount

Under 35

$49,130

35-44

$141,520

45-54

$313,220

55-64

$537,560

65-74

$609,230

Source: Federal Reserve Board

Median retirement savings balance by age

A little fine print: Because averages can be heavily skewed by outliers — in other words, the savings of over- and underachievers in each group — we’ve also included median balances in the breakdown below.

The median can often provide a more representative number than the average, and you’ll notice that the median numbers are quite a bit lower than the averages. (All data is from the 2022 Survey of Consumer Finances, unless otherwise noted.)

It’s also worth noting that both figures include only those who have retirement holdings — there are many people of all ages who do not.

A 2023 NerdWallet study found that 60% of Americans don’t have a retirement-specific account.

Age group

Median retirement savings balance amount

Under 35

$18,880

35-44

$45,000

45-54

$115,000

55-64

$185,000

65-74

$200,000

Advertisement

Charles Schwab
Interactive Brokers IBKR Lite
J.P. Morgan Self-Directed Investing

NerdWallet rating

4.9/5

NerdWallet rating

5.0/5

NerdWallet rating

4.1/5

Fees

$0

per online equity trade

Fees

$0

per trade

Fees

$0

per trade

Account minimum

$0

Account minimum

$0

Account minimum

$0

Promotion

None

no promotion available at this time

Promotion

None

no promotion available at this time

Promotion

Get up to $700

when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money.

Learn More
Learn More
Learn More

Retirement savings by age

Under 35

  • Average household retirement savings: $49,130

  • Median household retirement savings: $18,880

In the Survey of Consumer Finances, 50% of families headed by someone under age 35 had retirement accounts — meant here to include IRAs, Keoghs and certain employer-sponsored accounts such as 401(k)s, 403(b)s and thrift savings accounts.

Of the families in this age group who have retirement holdings, the average value of those holdings is $49,130, and the median value is $18,880.

» Dive into this article about how much to save for retirement

Ages 35 to 44

  • Average household retirement savings: $141,520

  • Median household retirement savings: $45,000

Nearly 62% of households headed by someone of this age range had retirement accounts, according to the data.

The average and median values of this group’s retirement holdings are significantly higher than those under age 35. To further increase retirement savings, while juggling other financial priorities such as childcare, living expenses, and more, an IRA can be a great way to do it.

» Learn how to open an IRA

Ages 45 to 54

  • Average household retirement savings: $313,220

  • Median household retirement savings: $115,000

About 62% of households headed by someone between the ages of 45 and 54 have retirement holdings, according to the survey.

Ages 55 to 64

  • Average household retirement savings: $537,560

  • Median household retirement savings: $185,000

This age range is close to the Social Security’s definition of full retirement age (Ranges from 65 to 67, depending on your year of birth). About 57% of households headed by a baby boomer have retirement holdings.

Ages 65 to 74

  • Average household retirement savings: $609,230

  • Median household retirement savings: $200,000

The bulk of these households include someone who is in retirement, or is of retirement age. According to this survey, 51% of this age group have retirement accounts.

After this point, average and median retirement account values begin to fall, as does the percentage of people who have retirement accounts. For households headed by someone age 75 or older, the median value of retirement holdings is 130,000, with an average holding of $462,410.

What is the average and median retirement savings?

The average retirement savings for all families is $333,940 according to the 2022 Survey of Consumer Finances.

Taken on their own, those numbers aren’t incredibly helpful. There are a variety of decent retirement savings benchmarks out there, but how much money other people have isn’t one of them.

After all, age is just one factor in how much you should save for retirement — and not everyone who is the same age will retire at the same time.

But retirement savings balances do tend to increase with age, partly due to factors such as increased earnings over the years, compound interest, and more. (If you've been struggling to fund retirement accounts, our guide on how to save money may help.)

» Check out our retirement planning guide if you need to rework your game plan

Track your finances all in one place

Find ways to save more by tracking your income and net worth on NerdWallet.

Sign Up

What Is the Average Retirement Savings by Age? - NerdWallet (5)

The bottom line

The headline here: Most people aren’t saving enough for retirement and are entering retirement with too little stashed away.

According a 2023 Fidelity report, Americans on average have saved only 78% of the amount they'll need in retirement, and 52% of U.S. households may not be able to pay for essential expenses in retirement.

That’s just one reason why the average retirement savings isn’t a benchmark. If you use these numbers as your guiding star, you’ll likely be in the same state as most of the country: unprepared for retirement.

How much you should have saved, and how much you should be saving, have nothing to do with where others your age stand. It has everything to do with your income, planned retirement spending, expected retirement age and life expectancy.

If you want to find out how much you personally will need to retire, a retirement calculator can help. And if that calculator tells you you’re behind? An IRA is a good place to start catching up, and if you have more concerns about your retirement progress, a financial advisor or robo-advisor can help.

» Find the best IRA account for you

What Is the Average Retirement Savings by Age? - NerdWallet (2024)

FAQs

What Is the Average Retirement Savings by Age? - NerdWallet? ›

The above chart shows that U.S. residents 35 and under have an average of $30,170 in retirement savings; those 35 to 44 have an average $131,950; those 45 to 54 have an average $254,720; those 55 to 64 have an average $408,420; those 65 to 74 have an average $426,070; and those over 70 have an average $357,920.

What is the actual average retirement savings by age? ›

The above chart shows that U.S. residents 35 and under have an average of $30,170 in retirement savings; those 35 to 44 have an average $131,950; those 45 to 54 have an average $254,720; those 55 to 64 have an average $408,420; those 65 to 74 have an average $426,070; and those over 70 have an average $357,920.

What percentage of retirees have $2 million dollars? ›

According to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances, 3.2% of retirees have over $1 million in their retirement accounts, while just 0.1% have $5 million or more.

How many people have $1000000 in retirement savings? ›

However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings.

What is the ideal 401k balance by age? ›

However, the general rule of thumb, according to Fidelity Investments, is that you should aim to save at least the equivalent of your salary by age 30, three times your salary by age 40, six times by age 50, eight times by 60 and 10 times by 67.

How much money does the average American retire with? ›

What is the average and median retirement savings? The average retirement savings for all families is $333,940 according to the 2022 Survey of Consumer Finances.

How many people have $3,000,000 in savings in usa? ›

1,821,745 Households in the United States Have Investment Portfolios Worth $3,000,000 or More.

What is considered wealthy in retirement? ›

Wealthy: To be considered well off, a person must be in the 90th percentile, possessing a household net worth of $1.9 million. This level of wealth affords trips, charity donations and college funds for children.

What net worth is considered rich? ›

While having a net worth of about $2.2 million is seen as the benchmark for being rich in America, it's essential to remember that wealth is a subjective concept. Healthy financial habits and personal perspectives on money are crucial in defining and achieving wealth.

How many Americans retire with $1000000 or more? ›

Only 12% of retirees have achieved or exceeded this recommended savings amount. Don't Miss: The average American couple has saved this much money for retirement — How do you compare? With returns as high as 300%, it's no wonder this asset is the investment choice of many billionaires.

Can I live off interest on a million dollars? ›

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

How many retirees have no savings? ›

Nearly 2 in 5 Retirees Have No Retirement Savings

“There are also a plethora of social and economic variables that impact how Americans are able to accumulate wealth during their working years.

What is the new magic number to retire comfortably? ›

A new study published by Northwestern Mutual found the "magic number" that Americans believe they need in order to retire comfortably hit $1.46 million this year, the highest level on record.

Can I retire at 62 with $400,000 in 401k? ›

If you have $400,000 in the bank you can retire early at age 62, but it will be tight. The good news is that if you can keep working for just five more years, you are on track for a potentially quite comfortable retirement by full retirement age.

Can I retire on 500k plus Social Security? ›

Key takeaways: Most people in the U.S. retire with less than $1 million. $500,000 is a healthy nest egg to supplement Social Security and other income sources. Assuming a 4% withdrawal rate, $500,000 could provide $20,000/year of inflation-adjusted income.

At what age is 401k withdrawal tax free? ›

Once you reach 59½, you can take distributions from your 401(k) plan without being subject to the 10% penalty. However, that doesn't mean there are no consequences. All withdrawals from your 401(k), even those taken after age 59½, are subject to ordinary income taxes.

How long will $900 000 last in retirement? ›

Yes, it is possible to retire very comfortably on $900k. This allows for an annual withdrawal of around $36,000 from age 60 to 85, covering 25 years. If $36,000 per year or $3,000 per month meets your lifestyle needs, $900k should be plenty for retirement.

What is the average 401k balance at age 65? ›

After this age group, 401(k) balances can begin to fall, or at least grow at a slower pace, as even more people start tapping their accounts. The average balance for those 65 and older is $232,710; the median falls to $70,620.

How much does the average 65 year old have in retirement savings? ›

According to data from the Federal Reserve's most recent Survey of Consumer Finances, the average 65 to 74-year-old has a little over $426,000 saved.

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Arline Emard IV

Last Updated:

Views: 5888

Rating: 4.1 / 5 (52 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Arline Emard IV

Birthday: 1996-07-10

Address: 8912 Hintz Shore, West Louie, AZ 69363-0747

Phone: +13454700762376

Job: Administration Technician

Hobby: Paintball, Horseback riding, Cycling, Running, Macrame, Playing musical instruments, Soapmaking

Introduction: My name is Arline Emard IV, I am a cheerful, gorgeous, colorful, joyous, excited, super, inquisitive person who loves writing and wants to share my knowledge and understanding with you.