Average Retirement Savings by Age: How Do You Compare?

See whether you have enough saved for retirement and how you compare

The ideal amount to save for retirement isn’t a one-size-fits-all formula—it’s a personalized goal that takes into account your lifestyle, income, and future plans. If you're like the majority of people, you probably need to step up your retirement savings efforts.

The median (middle-of-the-road) retirement savings for Americans in 2023 was $35,286 and the average retirement savings was $134,128, according to Vanguard. The average savings is far higher due to savers with significantly higher balances, who skew the results.

To help you navigate the process, we’ve outlined some broad estimates for how much you should aim to have saved at each decade of your career.

Key Takeaways

  • Retirement savings vary significantly by age group, with Baby Boomers saving the most and Gen Z saving the least.
  • Experts recommend saving 15% of your pre-tax income for retirement if you start at age 25, and 18% if you start at age 30.-
  • It's important to contribute enough to your 401(k) to take full advantage of any employer match.
  • It's never too early or too late to start saving for retirement.
Young couple on a couch looking at a tablet and paperwork

Delmaine Donson / Getty Images

Are You Saving Enough for Retirement?

Are you on track to retire comfortably? While financial experts often recommend saving 10-15% of your income for retirement, the reality is that many people aren’t able to reach that target. According to AARP, 1 in 5 Americans ages 50+ have no retirement savings.

While benchmarks can give you a rough idea of how your savings stack up against others in your age group, they don't necessarily reflect your unique financial needs. Your retirement security depends on both controllable factors, like your spending habits and how much you save, and unpredictable ones, like changes in the market and tax rates.

Median Retirement Savings by Generation

The Federal Reserve's 2022 Survey of Consumer Finances found that the median retirement savings for Americans was only $86,900.

Generation Median Retirement Savings 
Gen Z $29,000
Millennials $49,000
Gen X $82,000
Baby Boomers $289,000
Source: Transamerica Center

Average Retirement Savings by Age Group

Age Group Account Balances
Under 35  $49,130 
35 to 44  $141,520
45 to 54 $313,220
55 to 64 $537,560
65 to 74 $609,230
75 and over $462,410
Source: Board of Governors of the Federal Reserve System. "Survey of Consumer Finances."

Strategies for Saving at Every Age

In Your 20s

If you're in your 20s and just starting your career, your paycheck probably reflects that. You're also likely to be carrying student loan debt. According to the Board of Governors of the Federal Reserve System's Report on the Economic Well-Being of U.S. Households, the median education debt among those with any remaining student loans was between $20,000 and $24,999 in 2023.

On the bright side, those in their 20s have around 40 years before they retire, which is a lot of time to make up a shortfall. The single most important thing to do is to contribute to your employer-sponsored retirement plans, such as a 401(k) plan or a 403(b) plan. You can contribute up to $23,500 in 2025 ($23,000 in 2024).

Investment management firm Fidelity has found that if you start saving now, when you're around 25, you'll need to put aside 15% of your pretax income per year for retirement. If you can't save 15% of your salary, save as much as you can, and at least save enough to get the full benefit of your company's matching contribution if one is offered. Don't turn away free money.

Most people in their '20s are Generation Z. This generation has a median of $29,000 saved for retirement. The youngest Millennials are also in their '20s—their generation has a median of $49,000 saved for retirement. Investors under age 35 have an average of $49,130 saved for retirement.

The proportion of workers who saved $250,000 or more increases with age: 12% of Generation Z, 24% of Millennials, 31% of Generation X, and 51% of Baby Boomers.

In Your 30s

If you're in your 30s, you've likely gotten out of those entry-level pay grades. But life may be more complicated now. You might be married, have children, maybe a home, and you're probably still paying off your student loans. With everything from the mortgage to soccer cleats to an unexpected car repair taking a bite out of your paycheck, saving for retirement may fall by the wayside.

Fidelity suggests having the equivalent of your annual salary saved as a nest egg at age 30, twice your salary at age 35, and three times your salary by the time you exit your 30s. To reach these goals, consider tightening up your budget and increasing the percentage you're saving annually.

If you haven't started saving yet, you'll need to save a higher percentage of your annual income. For instance, if you don't start saving until you are 30, Fidelity recommends you put aside 18% of your salary a year. Someone starting at age 35 should try for 23% a year. Putting aside nearly a quarter of your income for retirement is a tall order for anyone with monthly bills and debt, and this underscores the importance of saving early.

Don't be too conservative with your investing choices. You're still young enough to weather big market downswings—even the kind that occurred in the wake of the COVID-19 pandemic. That's because your portfolio has time to recover.

Everyone in their '30s right now is a Millennial. Millennials have a median of $49,000 saved for retirement. Investors under age 35 have an average of $49,130 saved for retirement. Investors aged 35 to 44 have an average of $141,520 saved for retirement.

In Your 40s

You're probably in the prime of your career when you're in your 40s. You've paid your dues and hopefully, you have a salary that reflects that. With any luck, you'll come to the end of those student loan payments sometime in this decade, freeing up more money. But the house is bigger. The kids are older. And if you're honest, you might be blowing money on things you could do without.

Fidelity recommends that you have three times your annual salary saved by the time you reach 40. So if you're making $55,000, you should have a balance of $165,000 already banked. At age 45, it is recommended you have four times your annual salary saved and six times your salary by the time you reach 50.

If you are behind (and even if you're not), you should try to max out your 401(k) contributions. If you don't already have an Individual Retirement Account (IRA), start one and try to max that out as well. You can contribute up to $23,500 to a 401(k) for 2025 ($23,000 for 2024) and $7,000 to an IRA for 2025 (same as 2024).

To reach these goals, consider putting any raises you get toward retirement savings. And if you no longer have student loan payments, commit those sums to your nest egg as well.

Most people in their '40s are Generation X. This generation has a median of $82,000 saved for retirement. The oldest Millennials are also in their '40s—their generation has a median of $49,000 saved for retirement. Investors aged 35 to 44 have an average of $141,520 saved for retirement. Investors aged 45 to 54 have an average of $313,220 saved for retirement.

Retirement Savings Preparedness by Age Group

Age Group  Savings (%)  On Track? (%) 
18 to 29  57% 24%
30 to 44 72% 32% 
45 to 59 81% 34%
60 and over 88% 41%
Board of Governors of the Federal Reserve System. “Economic Well-Being of U.S. Households in 2022.” Page 69.

In Your 50s

If you're in your 50s, you're nearing retirement age. You have your retirement goals, and you still have time to save. But you might also be paying your children's college tuition and helping them with car payments and other expenses. The house might need fixing up, and your medical bills are almost certainly rising.

Fidelity recommends you have six to eight times your annual income saved during this stage of life.

If you are 50 or older, you can make a catch-up contribution, which is an extra $1,000 a year to your IRA and/or an extra $7,500 a year to your 401(k) or 403(b) (for both 2024 and 2025). Under a recent change, employees aged 60-63 are allowed a higher contribution limit of $11,250, instead of $7,500. 

Besides taking advantage of catch-up contributions, consider downsizing by selling your home and collecting any appreciated value. If you have company stock options or other assets, don't forget to consider those as part of your retirement balance, even if they don't sit in a retirement account. Consider meeting with a financial planner, especially one who specializes in retirement, to get things in order.

Everyone in their '50s right now is a Gen Xer. Gen Xers have a median of $82,000 saved for retirement. Investors aged 45 to 54 have an average of $313,220 saved for retirement. Investors aged 55 to 64 have an average of $537,560 saved for retirement.

In Your 60s

This can be the decade when you begin to reap the rewards of decades of saving. By the time you reach 60, you should have eight times your annual salary saved, according to Fidelity, while those who are 67 should have 10 times your salary saved.

At this point, it’s harder to save enough to make up for any shortfall. If you are behind on your savings, take a hard look at your assets and see what can be monetized at some point to help sustain you.

This is also the decade you can start receiving Social Security benefits. Most older adults find this to be a significant source of monthly income. For instance, the average monthly benefit for a retired worker as of May 2024 was $1,916.63 per month.

Everyone in their '50s right now is a Baby Boomer. Baby Boomers have a median of $289,000 saved for retirement. Investors aged 55 to 64 have an average of $537,560 saved for retirement. Investors aged 65 to 74 have an average of $609,230 saved for retirement.

Recommended Multiple of Salary Saved

Assuming retirement at 67, consider age-based milestones to ensure you can live the lifestyle you'd prefer.

Age   Recommended Multiple of Salary Saved
by 30   1x
by 40  3x
by 50  6x
by 60  8x
by 67 10x
Source: Fidelity

Tips for Saving for Retirement

  • Start early: The earlier you start saving, the more time your investments have to grow. One of the easiest ways is to enroll in an employer-sponsored program like a 401(k) if your company has one, as payroll deductions take the guesswork out of it.
  • Take advantage of employer contributions: If your company offers matching contributions, you get even more money saved for you. One benefit to 401(k)s and similar accounts are that they lower your taxable income, which means you may owe less at the end of the year.
  • Set up an emergency fund: Your emergency fund should be a highly liquid account, such as a high-yield savings account. You can set up automatic transfers from your checking account to your emergency savings fund every time you get paid. Like payroll deductions, you don't have to do anything.
  • Consider an IRA: If you don’t have a 401(k), open an Individual Retirement Account (IRA) for tax advantages.
  • Automatic contributions: Set up automatic transfers to your retirement account, so you save without thinking about it.
  • Cut unnecessary spending: Even small contributions make a difference. Aim to save at least 10% of your income.

Regardless of what age you begin saving, note down your goals and how much money you'll need for retirement. This means adding up the sources of income you expect to have. Then comes your cost of living. Deduct all of your expenses, including housing, food, clothing, transportation, healthcare, and bills. Don't forget to include things like entertainment and travel. This will give you a general idea of how much you'll need so you can be realistic in determining how much you'll need to save.

How Long Will My Retirement Savings Last?

This depends on several factors, like your anticipated spending in retirement and how much you have saved. You can estimate how much your savings will last by using a calculator. You can find a number of these online.

But you can also do the calculations on your own. First, determine how much income you expect to have in retirement. Then, add up all of your expenses—and don't forget anything. Make sure you include your housing, food, clothing, transportation, healthcare, and travel. Subtract your expenses from your income. If the number is positive, you're on the right track. If it's negative, you'll either need to earn more or spend less.

What Is a Good Monthly Retirement Income?

This depends on your lifestyle and your goals for retirement. One rule of thumb is the 80% rule, which recommends you set a monthly budget in retirement that is 80% of what you currently spend.

This assumes that your cost of living will go down in retirement, which isn't the case for everyone. Some people spend more in retirement, due to travel and medical expenses.

What Is the Average 401(k) Balance at Age 65?

According to the latest Federal Reserve numbers, a household headed by someone aged 65 to 74 had saved an average of $609,000. The median retirement savings for this age group was about $200,000. (Note: the average is about three times the median due to savers with unusually high balances, who skew the average.)

How Many People Have $1,000,000 in Retirement Savings?

According to Fidelity's Q2 2024 report, about 497,000 people had more than a million dollars in their 401(k)s. These 401(k) millionaires have been saving for a number of years, as the 401(k) contribution limit for 2024 is $23,000 if you're under 50, and $30,500 if you're 50 or older.

I Don't Have Access to a 401(k). How Can I Save for Retirement?

A self-employed person, a freelancer, or anyone else with earned income can open an Individual Retirement Account (IRA) and benefit from its tax advantages. You can open an IRA at most banks, brokerages, and other financial institutions.

You won't get an employer match, but you will get a tax break on your savings.

A traditional IRA reduces your taxable income for the year you deposit the income in your account. The taxes are deferred, which means you pay them when you withdraw the funds in retirement.

If you choose a Roth IRA, you pay the income taxes owed on that amount now. As long as you've had the account for five years and are over age 59 ½, you won't owe any tax on the amount you withdraw later.

You also have other options beyond an IRA. There's the Simplified Employee Pension (SEP) IRA and the solo 401(k), for example.

I'm Living Paycheck to Paycheck. How Can I Save for Retirement?

The least painful way to set aside money for retirement is probably the traditional 401(k) or, if you're a freelancer or self-employed person, a traditional IRA. The money you deposit in this type of account is pretax. In other words, you won't pay income tax on that money in the year you deposit it. That reduces your adjusted gross income for the year, meaning your tax bill shrinks. It's a smaller hit on your take-home income than the alternative, a Roth 401(k) or IRA.

Still, living paycheck to paycheck can make retirement savings difficult. Try reducing your spending wherever you can. Even $50 per month is better than nothing. It's a good start. It's $600 per year. And once you get into the habit of saving for retirement, it will be easier to continue doing it. Try to be creative. Your future self will thank you.

Can I Start Saving for Retirement When I'm 45?

It's never too late to start saving for retirement.

Of course you can begin socking away money for your future. It takes some discipline and a good plan, with some concrete savings benchmarks. Talk to a professional, like a financial advisor or retirement specialist, to choose the right mix of investment vehicles that are appropriate for your age and risk tolerance.

The Bottom Line

The amount needed for retirement is different for everyone. Nevertheless, there are benchmarks you can try to hit at every decade of your life. It's never too early in your career to put a plan together, and it's never too late to start, either.

With retirement planning, it's typically a good idea to talk to a financial professional, such as an investment advisor. They can help you work through all the ins and outs of saving for retirement, long-term, and help you make sure you're on the right track.

Article Sources
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  1. Vanguard. "How America Saves 2024." Page 50.

  2. AARP. "New AARP Survey: 1 in 5 Americans Ages 50+ Have No Retirement Savings and Over Half Worry They Will Not Have Enough to Last in Retirement."

  3. Transamerica Center. "Post-Pandemic Realities: The Retirement Outlook of the Multigenerational Workforce." Pages 42-45.

  4. Board of Governors of the Federal Reserve System. “Economic Well-Being of U.S. Households in 2023.” Page 58.

  5. Internal Revenue Service. "401(k) Limit Increases to $23,500 for 2024, IRA Limit Remains $7,000.”

  6. Fidelity. "How Much Should I Save for Retirement?"

  7. Transamerica Center. "Post-Pandemic Realities: The Retirement Outlook of the Multigenerational Workforce." Page 102.

  8. Transamerica Center. "Post-Pandemic Realities: The Retirement Outlook of the Multigenerational Workforce." Page 28.

  9. Fidelity. "How Much Do I Need to Retire?"

  10. Transamerica Center. "Post-Pandemic Realities: The Retirement Outlook of the Multigenerational Workforce." Page 43.

  11. Fidelity. "How Much Do I Need to Retire?."

  12. Social Security Administration. "Monthly Statistical Snapshot, January 2024."

  13. Board of Governors of the Federal Reserve System. "Survey of Consumer Finances."

  14. Fidelity. "Q2 2024 Retirement Analysis."

  15. Financial Industry Regulatory Authority. "Retirement Accounts: Types."

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