How Much High-Income Earners Have Saved for Retirement

Higher income can open the door to more complex retirement planning decisions, from how savings are allocated to how income is generated later in life. Households earning at the upper end of the income spectrum often have greater capacity to contribute to tax-advantaged accounts, invest in a wider range of assets and adjust their strategies over time. At the same time, higher earnings can come with tradeoffs, including higher taxes, variable compensation and the potential for increased spending.

If you’re falling behind on your retirement savings goals, a financial advisor can help you create a financial plan.

How Much High-Income Earners Have Saved for Retirement

A high-income earner is typically defined as an individual or household earning significantly more than the national average. A 2025 SmartAsset study found that households earning $780,000 or more fall within the top 1% of earners in the United States, though that threshold can vary depending on the state. For comparison, the median household income was just $83,730 in 2024, ¹ according to Census Bureau data, meaning top earners bring in many multiples of what a typical household earns.

While there is no universal benchmark for retirement savings, higher-income households often accumulate larger balances due to greater earning power and access to tax-advantaged investment strategies. For example, the median retirement savings of households in the top 10% of incomes was $558,600, according to the 2022 Survey of Consumer Finances (roughly $629,000 in 2026 dollars after adjusting for inflation). ²

A higher income does not automatically translate into long-term financial security. Lifestyle inflation, concentrated equity compensation, tax exposure and uneven savings habits can all affect outcomes. Debt levels, unexpected expenses and timing of market returns also play a role in shaping how much wealth is ultimately available for retirement.

Average Retirement Savings By Age of High-Income Earners

High-income earners start with significant retirement savings and accumulate more throughout the decades.

Let’s take a look at how much each age group has saved for retirement in 2022. Data comes from the Federal Reserve Board and is based on the average and median amount for each age group.

Where Your Retirement Savings Stand

Evaluating your current retirement savings is a crucial but challenging task as you work your way to your golden years. A detailed retirement plan incorporates your monthly budget, savings goals and lifestyle, among other factors.

For example, you might decide to save specific amounts when you reach a certain age, such as three times your salary by age 40. On the other hand, you could set one savings goal, such as $3 million by age 65.

Additionally, your savings method is foundational to your plan. You could save 10% of your salary every year or set a stringent monthly budget and dump as much as possible into various assets.

Remember, your investment strategy is as critical as the money you set aside. For instance, choosing low-fee investments, maxing out your accounts (401(k)s and IRAs), and automating savings will help boost your nest egg as you go. Furthermore, minimizing debt means you’ll have more to put towards retirement.

The essence of retirement is setting specific savings goals and following a disciplined approach to achieve them. That being said, financial obstacles (divorce, education for children, etc.) and temptations to spend more in the present can hinder anyone’s retirement savings plan. As a result, consulting a financial expert could help you create and execute your plan.

How to Get Your Savings on Track

High-income earners have unique opportunities and challenges when it comes to retirement planning. Here are four common strategies to help get your retirement savings on track:

Maximize Contributions to Tax-Advantaged Accounts

Contribute the maximum allowable amount to your tax-advantaged retirement accounts. In 2026, the maximum annual contribution for your 401(k) is $24,500 and $7,500 for your IRA. Additionally, catch-up contributions are available to savers age 50 or older, increasing maximum contributions by $8,000 for 401(k)s and $1,1000 for IRAs in 2026. Also, participants of 401(k)s and similar workplace plans can save an extra $3,250 between ages 60 and 63, bringing their maximum salary deferral to $35,750 in 2026.

Consider Non-Qualified Deferred Compensation Plans

Non-Qualified Deferred Compensation (NQDC) plans have no contribution limits and more flexible withdrawal rules. These plans are available only for executive-level roles high-income earners often occupy, and can offer these employees a unique tax advantage by allowing them to set aside significant portions of their income for retirement beyond a 401(k)’s limits.

Expand Your Investment Types

Open a brokerage account, buy real estate, or become a stakeholder in a small business. These alternatives could help diversify your portfolio and mitigate risk. Remember, each asset has specific tax implications.

Avoid Lifestyle Inflation

Avoiding lifestyle inflation involves making intentional financial choices to prevent your expenses from rising with your income. Start by setting clear financial goals, both short- and long-term, to give yourself a clear sense of direction. Create a budget to track your income and expenses, distinguishing between essential needs and discretionary spending. Automate your savings and investments so a portion of your income consistently goes towards your financial goals. Then review and adjust your budget to align it with your evolving financial situation and goals.

Bottom Line

High-income earners can save a lot of money. But, they will need to take effective steps to secure their financial future. Key steps include maximizing contributions to tax-advantaged accounts, considering non-qualified deferred compensation plans and diversifying investments.

Tips for High-Income Earners Saving for Retirement

• A comfortable retirement isn’t automatic, regardless of your income level. Fortunately, a financial advisor can help you tackle specific challenges for your retirement needs. 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.
• Taxes and lifestyle can drain your finances, drying up your savings capacity. Here’s where high earners lose most in these areas and how to counteract them.

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