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.
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 This material may not be published, broadcast, rewritten, or redistributed.
The average retirement age in the United States is 62, according to a 2024 MassMutual survey. In 1991, it was 57; in 2002, it was 59, according to a 2022 Gallup poll.
The average retirement age in the United States is 62, according to a 2024 MassMutual survey. In 1991, it was 57; in 2002, it was 59, according to a 2022 Gallup poll.
The average American has $65,100 in savings — excluding retirement assets — according to Northwestern Mutual's 2023 Planning & Progress Study. That's a 5% increase over the $62,000 reported in 2022.
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.
The average Social Security check as of April 2024 was about $1,915 per month. That comes out to $22,980 annually. It's enough to cover a substantial portion of most seniors' living expenses, but it's tough to live on alone.
According to the survey, 53% have less than $10,000 saved. Not far behind them is the 15% of Americans who have between $10,001 and $50,000 saved. Going up a little more, just 6% have between $100,001 and $200,000 saved. Few Americans have saved more than $300,000: 4% have between $350,001 and $500,000.
The median transaction account balance is $8,000, according to the Federal Reserve's Survey of Consumer Finances (SCF), with the most recently published data from 2022. Transaction accounts include savings, checking, money market and call accounts, as well as prepaid debit cards.
14% of Americans Have $100,000 Saved for Retirement
Most Americans are not saving enough for retirement. According to the survey, only 14% of Americans have $100,000 or more saved in their retirement accounts. In fact, about 78% of Americans have $50,000 or less saved for retirement.
How Many Americans Are Living Paycheck to Paycheck? A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
Many retirees fall far short of that amount, but their savings may be supplemented with other forms of income. According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.
The top 10% of American households by net worth had an average of $1.29 million in their retirement accounts in 2022, according to the Federal Reserve's Survey of Consumer Finances. This is almost four times the average retirement savings for all American families that year.
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