Updated June 23, 2018

Average Savings by Age

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More than half of Americans do not have any retirement savings. Of those who do, the average saved is $60,000.

Millennials seem more prepared than any other generation for retirement, as a majority of millennials with a retirement account started their savings at the age of 24. With the average retirement age today of 63, millennials can save for just shy of 40 years.

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Keep reading to learn more shocking details about American's lack of savings.

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The Average Retirement Account

  • How much does the average family have saved for retirement?
    The average family with retirement savings has $60,000 saved for retirement. The Census Bureau qualifies a family as any household with at least one working adult between 32 and 61 years old.

  • How much does the average millennial have saved for retirement?
    Millennials just starting out in the working world are trying to figure out how to save, let alone how much to save. The average millennial has just $1,000 saved for retirement. Millennials who have started saving though, have an average of $16,000 saved for retirement. The average millennial with a retirement account started their retirement savings at the young age of 24.

  • How much does the average Generation X'er have saved for retirement?
    The average saved among Generation X'ers is $67,000. 80% of those who have retirement savings use their employer-sponsored 401(k) accounts. However, almost 35% of them have taken a loan against their savings at some point.

  • How much does the average Baby Boomer have saved for retirement?
    Baby boomers have slightly more saved for retirement, with a median savings of $103,000. Shockingly though, more than half of Baby Boomers don't plan to stop working even after they retire.

  • How much does the average 25-year-old have saved?
    The average 25-year-old with a retirement account established has $16,000 saved. While that doesn't seem like a lot, they have a great head start since they started saving early. Since 81% of millennials worry about the availability of Social Security when they retire, almost 70% of millennials have started some type of savings for retirement.

  • How much does the average 30-year-old have saved?
    The average 30-year-old with retirement savings has $45,000 saved. Of those saving for retirement in their 30's, 30% contribute at least 10% of their pay towards retirement.

  • How much does the average 40-year-old have saved?
    The average 40-year-old with a retirement account set up has $63,000 saved for retirement. More than 80% of those in their 40's who have a 401(k) plan available to them participate in the plan. However, those in their forties put an average of 7% of their income towards retirement.

  • How much does the average 50-year-old have saved?
    The average 50-year-old with an established retirement account has $117,000 saved for retirement. Almost 50% of those in their 50s are not confident that they will have enough for retirement at this point.

  • How much does the average 60-year-old have saved?
    The average 60-year-old with a retirement account has $172,000 in retirement savings. Almost half of the people between 60 and 70 years old plan to rely on their Social Security benefits during retirement.

  • What is the average savings in an employer-sponsored 401(k)?
    Today, the average 401(k) balance is $97,700. That's almost $25,000 more than the average 401(k) balance from five years ago.

  • What is the average savings in an IRA?
    The average person with an IRA has $100,200 saved in an IRA. That's just about $27,000 more than five years ago.

Benchmarks by Age

  • How much should you have saved for retirement by age 30?
    Try to aim to have the equivalent of your annual salary saved by age 30. If you make $40,000, you should have $40,000 saved. This can be a combination of your fully vested 401(k) balance, emergency savings, and other investments.

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  • How much should you have saved for retirement by age 40?
    By the time you are in your 40s, you should have triple your annual salary saved. While this seems lofty, consider compound interest. The earlier you start saving, the easier this goal becomes. If you make $60,000, you'll need $180,000 saved.

  • How much should you have saved for retirement by age 50?
    By age fifty, you'll need five times your annual salary saved in order to have a comfortable retirement.

  • How much should you have saved for retirement by age 60?
    By age 60, you'll want to save 7 times your annual salary. Assuming the standard rate of inflation and consistent raises through the years, you could need as much as $700,000 saved between ages 40 and 60, based on a starting salary of $60,000 at age 40.

  • How much should you have saved for retirement by age 65?
    By age 65, you'll want 8 times your annual salary, as then you'll be at retirement age. But, if you are like the 52% of other 60-something year olds, you'll continue working.

  • How much should you have saved in an emergency fund?
    At the very least, you should save between 3 and 6 months of your monthly expenses. This helps protect you in case of disaster. Once you have at least 9 months put aside, you can focus your savings efforts on more long-term goals, such as retirement.

  • How much should you save each month?
    We like the 50/30/20 rule. You budget 50% of your income for your fixed expenses and reserve 30% of your income for variable costs. The remaining 20% is what you should strive to save from each paycheck. Of course, this won't happen overnight, but if you start now, you can work your way towards this goal.

Average Retirement Statistics

  • What is the average retirement age?
    The average person retires today at age 63. Women tend to retire at an average age of 62 and men at the age of 64.

  • What is the average life expectancy of a male?
    According to the Social Security administration, men live to an average age of 84.3 today.

  • What is the average life expectancy of a female?
    The Social Security Administration averages the life expectancy of a female to be 86.6, slightly more than 2 years older than men.

  • Can you retire at age 50?
    Retiring at 50 would leave you without any Social Security benefits. It also forces you to give up an average of 13 years of income you could save for retirement. Retiring at 50 would require a lot of planning and much more savings than the $117,000 that the average 50-year-old has saved.

  • What is the average Social Security payment?
    Today, the average monthly Social Security payment is $1,341. Most retirees need much more than this amount to live a comfortable life in retirement.

Bottom Line

The earlier you start saving, the easier it will be to have enough for retirement. Relying on Social Security may not provide the level of financial comfort you desire. Consider your employer's 401(k) as well as other investment vehicles to ensure a happy retirement for you and your spouse.

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