Why Knowing The Average Retirement Savings Can Help

Using both the average and median retirement savings figures can give you a more nuanced picture of where you stand. These metrics can inform your decisions when setting contribution rates, reviewing your retirement timeline or gauging whether you need adjustments. It can also help you avoid two common mistakes if you were to look at one metric alone: panicking because you are below average, or assuming you are on track just because you are above the median.

You should always treat these figures as reference points rather than one-size-fits-all targets. Your retirement needs depend on your income, expenses, debt, tax situation, retirement age, expected Social Security benefits, pension income, health, family situation and desired lifestyle. While a benchmark tells you where you stand compared with others, your retirement plan should be based on how much income you will actually need and how long your savings may need to last.

The retirement savings numbers mentioned come from the Federal Reserve’s most recent Survey of Consumer Finances. The SCF provides a detailed look at U.S. household finances, including assets, debts, income and retirement accounts. The survey is conducted every three years and is widely used by researchers, policymakers and financial professionals to analyze how American families save and build wealth.

The numbers below reflect households with retirement accounts and show both average and median balances by the Fed’s published age groups. Because the Federal Reserve uses brackets rather than exact decade-by-decade categories, the sections that follow use the closest available Fed age groups as reference points.

20s Age Group

• The numbers: If you are in your 20s, the closest SCF age bracket is under 35, where households with retirement accounts have an average retirement savings balance of $49,130 and a median of $18,880.
• What you can do: Your main focus should be building a savings habit. Don’t worry too much about the amount; what’s important is to start early and save consistently. If you have access to a workplace retirement plan, make sure you opt in because some companies do not do this automatically.
• What to keep in mind: At this stage, your savings rate is affected by entry-level wages, student loans, rent, relocation costs and perhaps career instability. Because cash flow may be limited, your goal isn’t to max out every retirement account immediately. Again, your priority is to start. You can always increase your savings rate as your income increases.

30s Age Group

• The numbers: You fall within the previous bracket until your early 30s and the 35 to 44 bracket in your late 30s. In the 35 to 44 age bracket, the average balance is $141,520, with the median at $45,000.
• What you can do: This is when you can start to accelerate your savings rate. Perhaps you have a more stable income and have made a dent in your student loan debt. And even though you may also be managing other, larger financial obligations, such as a mortgage, childcare or family expenses, your focus here should be to increase your contribution rate as income improves, so that lifestyle inflation does not absorb every raise.
• What to keep in mind: A useful approach is to make incremental increases to your retirement contributions, say by one or two percent each year, or whenever you receive a raise. If possible, contribute enough to trigger the full employer match, which is free money to boost your savings. This is also a great time to review how your money is invested. You have a long-term horizon, so you might not want an overly conservative portfolio, which could limit growth.

40s Age Group

• The numbers: You may use the 35 to 44 and the 45 to 54 age brackets figures as reference points. Americans in their late 40s with a retirement account have an average savings balance of $313,220. The median is at $115,000.
• What you can do: Your 40s is where you can really focus on boosting your retirement funds. Retirement is still far enough away for compounding to work, but close enough that under-saving is more detrimental. This is also a good time to review your target retirement age, expected lifestyle, current contribution rate, account mix and investment allocation.
• What to keep in mind: Your savings rate at this age is perhaps affected by housing costs, raising children, college planning, debt obligations and caring for aging parents. Such pressures can make it tempting to delay retirement contributions. Try to find a balance, but don’t lose your momentum.

50s Age Group

• The numbers: The closest Fed age bracket is 55 to 64, where the average is $537,560, and the median is $185,000. You may also use the figures for the 45 to 54 age bracket as a reference if you are in your early 50s.
• What you can do: You should consider this decade as the final major accumulation period before retirement. Your priority should be maximizing savings opportunities whenever possible. This is also when you are eligible to make catch-up contributions to 401(k)s, IRAs, and other retirement plans. For example, in 2026, you can contribute an additional $7,500 to your 401(k), on top of the regular $24,500 limit.
• What to keep in mind: Your savings rate in your 50s may be shaped by peak earnings, mortgage payments, college expenses, health costs and late-career transitions. If your balance is below the national benchmarks above, you still have time to improve your situation. Explore catch-up opportunities, employer matches, debt reduction and even delayed retirement to strengthen your position.

60s Age Group

• The numbers: If you are in your 60s, use the Fed benchmarks of $537,560 average and $185,000 median (55-64 age bracket), and $609,230 average and $200,000 median (65-74 age bracket).
• What you can do: This is when your focus shifts from accumulation to retirement readiness. At this point, your account balance matters, but so does your ability to turn that into sustainable income. Review your expected spending, Social Security benefits, healthcare costs, tax situation, debt payments and withdrawal strategy.
• What to keep in mind: Savings balances in this age can be affected by retirement timing, market performance, healthcare needs, when you claim Social Security and whether you continue working. If your funds are tight, delaying retirement by one or two years allows you more time to save, reduce the years your savings must fund and potentially increase Social Security benefits.

70s Age Group

• The numbers: The average retirement savings for ages 65-74 is $609,230 and the median is $200,000. The 75+ age bracket from the SCF is also pertinent: $462,410 average and $130,000 median.
• What you can do: Here, your focus is less on saving and more on managing withdrawals, taxes and income preservation. Required minimum distributions can also become a major factor, depending on age and account types. Review your asset allocation to ensure it supports your income to maintain some growth for a longer retirement.
• What to keep in mind: The key question is whether your retirement income plan is sustainable and tax-efficient, not whether your balance matches the national average.

80s Age Group

• The numbers: The Fed’s closest published category is 75+. Because that age bracket includes all households 75 or older, it should be treated as a broad benchmark rather than an 80s-only figure.
• What you can do: By your 80s, you’ve probably been withdrawing from savings for years. Your balance is affected by longevity, medical expenses, withdrawal patterns and whether you support a spouse or family member.
• What to keep in mind: Your goal should be financial flexibility, reliable income, and simplified account management. You should also review long-term care costs, estate documents and beneficiary designations.

90s Age Group

• The numbers: As with the previous section, Fed data is from the 75+ age bracket: $462,410 average and $130,000 median.
• What you can do: At this stage, the most important questions are usually practical. Are essential expenses covered? Is there a plan for healthcare and long-term care? Are accounts organized and accessible to trusted decision-makers if needed? Are beneficiary designations and estate documents updated?
• What to keep in mind: In your 90s, the retirement savings balance matters, but the structure around the money matters just as much, if not more.

Factors Which Affect Your Savings Balance

Retirement savings balances vary, even among people in the same age group. Aside from your life stage, your balance is shaped by income, contribution rates, account type, and market performance.

Income Levels

This is the foundation of your retirement savings, and it determines how much room you have to contribute. High earners may have the flexibility to save more, but it doesn’t automatically mean higher savings. Lifestyle inflation, debt, housing costs, family obligations and bad financial habits can limit your progress.

So consistency is key, regardless of how much you earn. Even small contributions become significant over time with compounding.

Contribution Rates

A person saving 5% of their income is more likely to have a very different outcome than someone saving 10%, 15% or more, even if they have similar earnings. Your contribution rate is crucial because you have more control over it.

Increase your contributions gradually to make it more manageable. Keep your contribution rate proportional to any increase in income. Say you get a 5% salary increase; your contribution rate should increase by at least 5%. And always aim to contribute enough to trigger the full employer match at work.

Retirement Account Types

Account types affect your returns and how they are taxed. Traditional 401(k) and IRAs allow pre-tax contributions, and withdrawals are taxed later. Roth accounts use after-tax contributions, so qualified withdrawals in retirement are generally tax-free. Taxable brokerage accounts are not subject to RMDs and early withdrawal penalties, but they don’t enjoy the same tax advantages.

You can use multiple account types for flexibility. For example, having both traditional and Roth accounts may give you more control over taxable income in retirement. The best mix depends on your income, tax bracket, employer plan and expected retirement timeline.

Market Conditions

Strong market periods can raise retirement savings portfolios quickly, while downturns can temporarily reduce them even if you continue contributions. This is why your retirement balance can vary from year to year. And because markets move in cycles, it’s crucial not to judge your savings progress based on a single year.

You should think long term and focus on consistent contributions, diversification and an allocation that fits your age, risk tolerance and timeline. Market conditions matter, but your behavior during swings is more important. Remember, time in the market is always better than timing the market. Play the long game and be strategic.

Are You On Track To Retire In 2026?

This question requires more than comparing your retirement savings to the average or median of your age group. Again, those figures provide context, but they do not reflect your desired retirement age, projected expenses, income sources, debt, taxes, health or retirement lifestyle. A better starting point is to estimate how much annual income you may need in retirement, then compare that to reliable income sources, such as Social Security, pensions, annuities and other assets.

From there, review whether your current savings rate and investment strategy are likely to close the gap by your target retirement age. You can use this retirement calculator to make things easier. Depending on the result, you may need to increase contributions, delay retirement or make any other adjustments. What’s important is to regularly review and update your retirement plan.

How To Catch Up On Retirement Savings

If you are behind on your retirement savings, the most obvious step is to increase contributions where possible. A priority could be to capture the full employer match in your workplace plan. Don’t waste this part of your compensation. You should also take advantage of catch-up contributions to 401(k)s or IRAs if you are 50 or older.

Automation can help turn saving into a default behavior. Set up automatic contributions to a retirement or brokerage account as soon as you receive your paycheck to reduce reliance on discipline. If cash flow is tight, start small and step up your savings. For example, by increasing your contribution by $20 more each month, you’ll have saved an additional $1,560 in one year.

Catching up may also require reviewing the rest of your finances. Pay down high-interest debts to free up future cash flow. Ensure your investment allocation is positioned for long-term growth and not too conservative for your timeline. You can also optimize your finances without cutting expenses. The goal is not to fix everything at once. Look for several manageable changes and be consistent.

Monitoring Your Savings Progress

Retirement planning is not set-it-and-forget-it. Your income and expenses change, markets rise and fall, and your retirement goals may evolve over time. A savings balance that looked sufficient five years ago may need a second look. Regular reviews help you identify gaps early, while there’s still time to adjust.

A good review should include your current balance, contribution rate, investment allocation and your projected retirement date, income sources and expenses.

The median and average retirement savings by age are useful references for gauging your retirement readiness. Use these benchmarks as context, but build or adjust your retirement plan based on your actual income needs, timeline, contribution rate, investment strategy and desired lifestyle. For more information and tailored advice, consider working with a financial advisor or retirement counselor.