Saving for retirement is an important part of financial planning, but many Americans find themselves falling behind. According to the Federal Reserve’s Economic “Well-Being of U.S. Households in 2023” report, 66% of Americans either believe their retirement savings are off track or aren’t sure. For those who do have retirement accounts, the median savings balance stands at $87,000, based on the latest Federal Reserve data. With about one in four adults lacking any retirement savings, understanding how your efforts compare and planning for the future can help you take actionable steps toward financial security.
Knowing how your retirement savings compares to your peers can be helpful. Speak with a financial advisor today to work on a retirement plan for the future.
Average Retirement Savings by Age
First, it can’t be stressed enough that too many of us aren’t even saving for retirement. According to the Federal Reserve, one in four Americans have no retirement savings. Taking them and people who aren’t saving enough into account, many publications have estimated that the nation’s retirement savings deficit is in the trillions.
As we stated earlier, research by the Federal Reserve found that the median retirement account balance in the U.S. – looking only at those who have retirement accounts – was just $87,000 in 2022.
Retirement Account Balances by Age Group
| Age Bracket | Average Balance | Median Balance |
| 35 and younger | $49,130 | $18,880 |
| 35 – 44 | $141,520 | $45,000 |
| 45 – 54 | $313,220 | $115,000 |
| 55 – 64 | $537,560 | $185,000 |
| 65 – 74 | $609,230 | $200,000 |
| 75 and older | $462,410 | $130,000 |
What Is the Median Household Net Worth?
It isn’t just retirement accounts that Americans lack. Looking at overall net worth tells a similar story, although these figures have been consistently rising since the Great Recession.
In the Federal Reserve’s latest Survey of Consumer Finances (SCF) data, the median household net worth for a head of household age 35-44 years old was $135,300. For a head of household aged 45 to 54 years old, that figure was $247,200. In the 55-64 age range, median net worth was $364,500. For those between 65 and 74, the average net worth was approximately $410,000.
Why Social Security Alone May Not Be Enough to Retire
For many Americans, Social Security benefits are the only source of income during their retirement. Social Security was never meant to be the sole source of retirement income, though.
The average monthly Social Security retirement benefit was approximately $1,976 as of January 2025. Add the rising debt levels among older Americans and you have a situation far from most peoples’ retirement dream of travel and leisure.
America’s Retirement Savings Gap
America has a retirement savings gap to match our income gap. People with higher incomes are more likely to have retirement savings and their average retirement savings are higher, too. Meanwhile, people with the lowest incomes have no savings and plenty of debt. That shouldn’t come as a huge surprise, but it’s one of the most notable features of the retirement landscape.
It may be counter-intuitive but those near the top can still have big retirement savings gaps. Think of a high-earning family with an expensive mortgage and kids in private school. They may not save much for retirement, and their high standard of living means there would be a big gap between the income they’re used to and the retirement income they’ve saved.
Think lower-income folks can simply work longer and retire later to make up for their lack of savings? Not so fast. Americans with lower incomes may be the ones least able to work into their late 60s and 70s, either because their work is too physically demanding or their employers won’t want to keep them on. It’s a good idea even for white-collar workers not to count on working later as a substitute for retirement planning.
Where Your Retirement Savings Stand
Experts generally think of retirement savings as an end goal with a series of mileposts along the way. Some say that you should have saved the equivalent of one year’s salary by the time you hit 30. Saving more certainly won’t hurt, though.
By the time you retire, it can be a good idea to have between nine and 11 times your salary in retirement savings. These aren’t hard-and-fast rules, and experts disagree about how much to save by 30, 35, 40, 45, 50, 55, 60, 65 and beyond.
Do you need help figuring out your required minimum distributions? Try SmartAsset’s RMD calculator to learn more.
Conventional wisdom has been that saving between 10 and 15% of your salary each year will get you on your way to a comfortable retirement so long as you choose a low-fee investment vehicle that consistently earns inflation-beating returns. Talking to an expert can help you set and execute a retirement plan.
So why don’t Americans’ average retirement savings match up to what experts say we should have? There are two very good reasons. One is that our brains have a hard time giving up present rewards for future rewards, especially when that future is decades away. Saving is tough. We can’t picture ourselves choosing between food and prescription drugs in our old age. However, we can visualize what we’d do with our paychecks in the here and now.
The other reason for the retirement savings shortfall is if you don’t earn enough to save for retirement. Juggling necessary expenses, student loan payments, childcare and all the rest can leave us with nothing left for an IRA.
Practical Steps to Boost Your Retirement Savings
Saving more for retirement can be complicated. But a plan could help you break a strategy down into simple steps to reach your goals. You can start by putting aside a set amount of your income each month. If your job offers a matching contribution, try to contribute enough to get the full match.
Reducing your debt, especially credit card debt, is another practical way to free up money for additional savings. For credit card debt, you could pay more than the minimum payment each month and focusing on paying off cards with the highest interest rates first. For other debts like student loans or car loans, consider refinancing at a lower interest rate or making extra payments when possible.
If you’re 50 or older, you can use catch-up contributions to save extra money in your retirement accounts. In 2025, you can add an extra $7,500 to your 401(k), 403(b) and most 457(b) plans, bringing your total contribution limit up to $31,000. And if you’re between ages 60 and 63, your catch-up contribution is $11,250, which increases you limit to $34,750.
Here’s a checklist with six practical steps to help you boost your retirement savings:
- Choose a monthly savings amount.
- Use your employer’s matching funds.
- Pay off high-interest debt.
- Increase your savings when possible.
- Make catch-up contributions if age 50 or older.
- Regularly review your savings goals.
Bottom Line
When it comes to average retirement savings statistics in America, the picture is fairly grim. That means that keeping up with the Joneses in this respect just isn’t enough. Even above-average savings and a healthy Social Security benefit might not be able to maintain your lifestyle in retirement. To get around this retirement savings gap, many Americans say they expect to work longer and retire later. But it isn’t a sure thing that you’ll be able to keep working into your 70s. The safer bet is to save as much as you can, as early as you can – and throughout your career.
Tips to Help You Save for Retirement
- A financial advisor can help you build a long-term strategy for retirement. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Social Security benefits alone won’t be able to support your current lifestyle. However, they can certainly help with your living expenses in retirement. Try SmartAsset’s Social Security calculator to see how much of a benefit you can expect.
- While you’re at it, check out SmartAsset’s retirement calculator to see if your savings are on pace; and try our cost of living calculator to get a better idea of your income needs.
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