Average & Median Retirement Savings by Age

Have you ever wondered how much you should save for retirement? Understanding how your retirement savings compare to national benchmarks makes planning more manageable. The average and median retirement savings by age are two common figures used to track retirement progress. These numbers give a quick snapshot of where people generally stand during different life stages. 

Below, we’ll look at national data from primary sources like the Federal Reserve. You’ll also find practical ideas for how to save more and close any gaps, regardless of where you are on your retirement journey. 

Are Retirement Savings Benchmarks Important?

Looking at retirement savings benchmarks is a good way to set personal goals. They show how much people typically have saved by certain ages and give you something to shoot for. These benchmarks also make it easier to see if your savings are on track or falling behind. One common set of targets comes from Fidelity. They suggest saving 1x your salary by 30 and 10x by 67. While everyone’s situation is different, these milestones give a simple starting point for long-term planning.

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Average vs. Median Retirement Savings: What’s the Difference?

When you see retirement savings numbers, you’ll often notice two figures: the average and the median. The average is the total savings divided by the number of people. It’s frequently inflated by people with substantial retirement accounts. This makes the average look higher than what most people have. The median shows the middle number, meaning half of the people have more and half have less. This number gives a clearer view of what a typical person has saved. If you want a more realistic idea of where you stand, the median is typically the better number to follow. 

Retirement Savings by Age: National Averages

Retirement savings look very different depending on your age. National data shows how average and median savings change over time. The averages are generally much higher than the medians, which shows how a few large accounts raise the overall numbers. Let’s take a more in-depth look at what people have saved at different ages based on national surveys. 

Under 35

Households under 35 have an average retirement savings of $49,130, and a median of $18,880. Many young workers are just starting out, which explains the low numbers. Not everyone has access to retirement accounts early in their careers, and saving is a challenge on entry-level pay. Still, Fidelity recommends saving at least 1x your salary by age 30, so it’s a good time to start establishing a habit of saving regularly.

35-44

In this age group, the average savings jumps to $141,520, while the median is $45,000. This is where you see the gap between the average and median start to grow. Higher earners can save more, but many are still catching up. By age 40, Fidelity suggests saving around 3x your salary to keep on track for retirement. 

45-54

Between 45 and 54, the average retirement savings climbs to $313,220, and the median reaches $115,000. This is often a period of higher earnings, but many people also have expenses like raising children or paying for college. Fidelity recommends having around 6x your salary saved by age 50. 

55-64

For those nearing retirement, the average savings is $537,560, while the median is $185,000. This is an essential time to focus on retirement planning because retirement is nearing. Many people in this age group are behind the recommended 8x salary by 60. Catch-up contributions are a valuable way to make up ground during these years. 

65-74

In this group, the average retirement savings peaks at $609,230, and the median is $200,000. Many people start drawing from their retirement accounts during this period. Even though the averages seem high, the median shows that most retirees have less than the recommended 10x salary by age 67. This is also when required minimum distributions (RMDs) typically start. 

75 and Older

For those 75 and older, the average savings drops to $462,410, while the median drops to $130,000. This is because many retirees have already spent part of their savings. Healthcare and long-term care costs can also take a toll during these years. Planning ahead for these expenses makes your retirement savings last longer. 

401(k) Balances by Age: What Workplace Data Shows

Workplace retirement accounts, like 401(k)s, follow similar trends to overall retirement savings. Data from Vanguard and Fidelity shows that averages exceed medians by 2-4× in every age band because high-income savers pull the mean upward.

For most people, the median balance gives a more accurate picture of typical savings. These reports also show that many workers have low balances or no savings at all. Workplace plans are a significant factor in retirement readiness, especially when companies offer matching contributions. Regularly checking your 401(k) balance is a great way to track your progress. 

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How Generational Trends Impact Retirement Savings

Different generations show variances in how much they’ve saved for retirement. Recent Fidelity data shows that Gen Z has around $13,900 saved, and Baby Boomers have about $239,600 on average. This gap is partly because older generations have had more time to save. Younger workers are starting earlier, though, and many are making retirement savings a top priority. Market changes and job trends each factor into how each generation saves. Looking at these trends gives you a better idea of how your savings compare. 

Here is a chart that shows a quick snapshot of each generation’s savings:

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Why Averages Can Be Misleading

It’s easy to feel like you’re behind when you see high average retirement savings numbers. However, averages don’t always tell the entire story. A small number of households have very large balances, increasing the average. For example, around 4.6% of households have more than $1 million in tax-advantaged accounts. Meanwhile, half of all households have less than $87,000 saved. This large gap shows why the median gives you a better idea of typical savings. The median isn’t skewed by outliers, so it’s more useful if you want to compare your savings to what’s common.

Are You On Track? Comparing Benchmarks vs. Reality

One way to check your progress is by comparing how much you should have saved for retirement to common benchmarks. Fidelity’s guidelines suggest saving certain multiples of your salary by specific ages, such as 1x by 30 and 6x by 50. When you compare these targets to national data, however, lots of people fall short. For example, for those aged 55-64, the guideline is 8x your salary. For someone making $80,000, that’s $640,000. The median savings for this age group is only about $185,000, or about 29% of the goal. These numbers might be discouraging, but they can also show areas where you may want to focus more.

Tips to Close the Retirement Savings Gap

If your savings are behind, you’re not alone. The good news is that there are ways to catch up over time. A few small changes can allow you to save more and be more comfortable with your retirement plans. Here are a few simple steps to get started. 

Increase Savings Rate

One of the easiest ways to gain more savings is by putting away a bit more each year. A good target is to save around 15% of your income, including any company match. Gen X workers are already close to this, with an average savings rate of 15.2%. If you’re saving less, try raising your contributions by 1% each year. These small changes can have a significant impact over time without wiping out your paycheck. 

Take Advantage of Catch-Up Contributions

Once you turn 50, you can make extra contributions to your retirement accounts. For 401(k)s, you can add an extra $7,500 each year. For IRAs, it’s an extra $1,000. A new rule called SECURE 2.0 allows an additional $1,250 in 401(k) catch-up contributions between ages 60-63. These extra savings give your retirement accounts a nice increase in the later years. 

Diversify Beyond 401(k) Accounts

While 401(k)s are beneficial, it’s also good to save in other places. IRAs and Health Savings Accounts (HSAs) give you more options. If you have old 401(k)s from previous jobs, consider rolling them into a low-cost IRA. After maxing out tax-advantaged accounts, you can use a brokerage account to save even more for retirement. 

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Delay Retirement to Maximize Income

Working longer gives you more time to save and grow your investments. If you wait until 70 to claim Social Security, your benefits increase by about 8% annually after full retirement age. Waiting to withdraw money from your retirement accounts also gives them more time to grow. Even part-time work after your primary career can stretch your savings and avoid early withdrawals, especially from accounts like Roth IRAs that don’t have required minimum withdrawals. 

Simple Ways to Improve Your Retirement Savings

It can be overwhelming to consider how much should you have to retire comfortably. However, small, steady changes do make a difference over time. Regardless of where you’re at, there are steps you can take now to generate more savings and be better prepared. 

Key Takeaways:

• The median retirement savings is much lower than the average, showing most people have less than it seems.
• Many people fall short of Fidelity’s salary-based targets, especially in their 50s and 60s. 
• Catch-up contributions offer a way to increase savings later in life.
• Delaying retirement can increase Social Security and give savings more time to grow.
• Saving in multiple account types, such as 401(k)s or IRAs, gives you more flexibility.

Action Items:

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Find an advisor and start preparing your retirement strategy today!

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FAQs

What percentage of Americans have no retirement savings?

According to a 2024 report from the Federal Reserve, only 67% of US adults have assets designated for retirement. This means a whopping 33% do not have retirement savings.

What does the average American retire with?

Households at retirement age have an average of $609,230 saved for retirement.

How long would $1 million last in retirement?

It depends on spending, location, and lifestyle. Based on a 4% withdrawal rate, $1 million could last about 25 to 30 years—longer if expenses are low, shorter if spending is high, or as inflation rises.

What is the 4% rule in retirement?

The 4% rule suggests withdrawing 4% of your retirement savings in the first year, then adjusting that amount for inflation each year. It’s designed to make your money last about 30 years in retirement.

What is the $1000 a month rule for retirement?

The $1,000-a-month rule estimates that you need about $240,000 saved for every $1,000 of monthly retirement income, assuming a 5% annual withdrawal rate.

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