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

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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

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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

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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

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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 $500,000 in savings? ›

How much do people save for retirement? In 2022, about 46% of households reported any savings in retirement accounts. Twenty-six percent had saved more than $100,000, and 9% had more than $500,000. These percentages were only somewhat higher for older people.

How many people have $1,000,000 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. The majority of retirees, however, have far less saved.

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? ›

Key findings. In 2022, the average (median) retirement savings for American households was $87,000. Median retirement savings for Americans younger than 35 was $18,800 as of 2022.

What is considered a good monthly retirement income? ›

Let's say you consider yourself the typical retiree. Between you and your spouse, you currently have an annual income of $120,000. Based on the 80% principle, you can expect to need about $96,000 in annual income after you retire, which is $8,000 per month.

How many Americans have $100,000 in savings? ›

More than one in 10 Americans do not have any savings

Almost one in ten men have $100,000 or more in savings, but the figure falls by four percentage points for women (9% men vs. 5% women).

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.

What percentage of retirees have $1 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.

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.

What is considered a good retirement nest egg? ›

There's no single correct amount to save for retirement. For example, a $500,000 nest egg may be a good amount for some retirees, while others may need more, depending on where they live and how many dependents they have. If you want to figure out what size your nest egg should be, a retirement calculator can help.

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.

Can I retire at 60 with 300k? ›

£300k in a pension isn't a huge amount to retire on at the fairly young age of 60, but it's possible for certain lifestyles depending on how your pension fund performs while you're retired and how much you need to live on.

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.

What is the 80 20 rule for 401k? ›

Put 80% of your money into retirement accounts like 401ks or IRAs, and 20% in high-yield investments. Invest 80% of your money in passive index funds or ETFs and the remaining 20% in real estate. Put 80% of your money into blue-chip stocks and 20% in bonds or small and midsized companies.

What percentage of people retire with $2000000? ›

Among the 47 million households headed by someone age 60 or older, 7% had household investable assets of at least $2 million, Drinkwater said. Only 6% of the 89 million households in the U.S. headed by someone 40 to 85 years old has that amount, Drinkwater said.

What is the average 401k balance for a 65 year old? ›

Ages 55-64

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.

Is $100,000 in retirement at 30 good? ›

“By the time you're 40, you should have three times your annual salary saved. Based on the median income for Americans in this age bracket, $100K between 25-30 years old is pretty good; but you would need to increase your savings to reach your age 40 benchmark.”

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