Retirement Savings: How Much Should Be Saved by Different Ages?
U.S. Retirement Savings Vary Widely by Age Group
A new analysis of retirement savings data reveals significant variations in savings across different age groups in the United States. The findings, drawn primarily from reliable surveys such as the Federal Reserve’s Survey of Consumer Finances (SCF), Fidelity, and Vanguard data as of mid-2025, offer insights into the nation's retirement preparedness.
| Age Group | Average Retirement Savings | Median Retirement Savings | |-----------------|----------------------------|--------------------------| | Under 35 | $42,640 to $49,130 | $16,255 to $18,880 | | 25-34 | $42,640 | $14,933 (Vanguard) | | 35-44 | $103,552 to $141,520 | $39,958 to $60,000 | | 45-54 | $188,643 to $313,220 | $60,763 to $115,000 | | 55-64 | $271,320 to $537,560 | $87,571 to $185,000 | | 65-74 | $609,230 (average only) | $88,488 to $200,000 | | 75+ | $462,410 (average only) | $130,000 (Federal Reserve)|
Younger adults (under 35) typically have median savings below $20,000, reflecting early career stages and less time to accumulate savings. By ages 45-54, median savings generally exceed $60,000, with averages over $180,000, showing growth as people near peak earning years.
Approaching retirement (ages 55-64), median savings range roughly between $87,000 and $185,000; averages can exceed $500,000 due to accumulations and catch-up contributions. For those 65 and older, median values vary across data sources but tend to be between $88,000 and $200,000, while averages can exceed $400,000 or $600,000, reflecting a mix of retirees at different financial stages.
Interestingly, the average savings tend to be higher than median savings due to a small number of people with very large retirement accounts skewing the average upward. The median savings are often a more representative measure of typical retirement savings for most households.
Other key points from the data include:
- Only about 9.3% of U.S. households with any money in retirement accounts have $500,000 or more in retirement savings.
- Approximately 51% of households aged 65 to 74 have retirement accounts.
- The average retirement savings for families under 35 is $49,130.
- The average retirement savings for families 75 and older is $462,410.
- The average retirement savings for families between 35-44 is $141,520.
- Approximately 57% of households headed by someone aged 55 to 64 have retirement holdings.
This data emphasizes the wide variation in retirement preparedness across households and the importance of personal savings rates and investment choices. Focus on your own savings path is advised rather than fixating on averages or medians alone.
Sources used include the Federal Reserve's Survey of Consumer Finances, Fidelity Investments, Vanguard’s "How America Saves 2024", and financial aggregators, all current as of mid-2025.
- The average savings for families under 35 is significantly lower than the median, indicating that a small percentage of individuals have large retirement accounts that skew the average.
- The analysis of retirement savings data suggests that approaching retirement age, households typically have median savings of around $87,000 to $185,000, while averages can exceed $500,000.
- Personal finance experts advise focusing on one's own savings path rather than comparing one's savings to averages or medians, as the data shows a wide variation in retirement preparedness across households.
- Investing in retirement savings becomes increasingly important as one nears retirement age, with around 57% of households aged 55 to 64 having retirement holdings, compared to approximately 51% of households aged 65 to 74.
- A personal finance calculator can help individuals assess their spending, saving, and investing habits, and make informed decisions about their retirement savings plan.
