Its easy to feel like everyone has their financial act together—everyone, that is, except you. But the truth is, many people are anxious about their financial standing and wonder how theyre doing, especially when it comes to retirement savings.
You might want to look at the average amount saved for retirement by age to see how you stack up against other people. That way, you can compare your retirement savings with people who have been working and saving for about the same amount of time as you. Of course, youll also want to see if youre on track for your retirement—fortunately Fidelity does have an easy guideline that can help (more on that later).
The Cold, Hard Truth About Retirement Savings in America
Have you ever wondered if you’re saving enough for retirement? Or maybe you’re curious about how your retirement nest egg stacks up against other Americans? Well, I’ve been digging into the latest data, and let me tell ya – the numbers are pretty eye-opening.
When I first started researching average retirement savings in 2020, I honestly expected the figures to be higher But the reality is that many Americans are woefully underprepared for their golden years Let’s break down what the actual numbers show, what they mean for you, and what you can do if you’re falling behind.
The Shocking Average Retirement Savings Statistics from 2020
According to data from the 2019 Survey of Consumer Finances (which covers through early 2020), here’s what retirement savings looked like for American adults between 32 and 61 years old
- Average retirement savings (strict definition): $131,631.40
- Median retirement savings (strict definition): $6,450.00
- Top 1% retirement savings (strict definition): $1,770,500.00
Wait, what? Did you catch that massive gap between the average and the median? This huge difference tells us something important – a small number of super-savers are pulling up the average, while most Americans have saved relatively little.
In fact, the data shows that 43. It was found that 9% of American adults had no retirement savings at all, using the strictest definition of retirement accounts. That’s almost half of all adults who haven’t saved anything for retirement!
When using a more expansive definition of retirement savings (which includes more financial assets beyond traditional retirement accounts), the numbers look a bit better:
- Average retirement savings (expansive definition): $282,554.50
- Median retirement savings (expansive definition): $21,120.00
- Top 1% retirement savings (expansive definition): $4,436,800.00
But even with this broader view, 23. About 15% of American adults still didn’t have any (or even negative) retirement savings. That means that almost one in four Americans have no savings for the future!
Breaking Down Retirement Savings by Age in 2020
Of course, age makes a huge difference when it comes to retirement savings. Obviously, a 32-year-old won’t have the same savings as someone nearing retirement age. According to Fidelity’s data from 2020, here’s how 401(k) balances broke down by age group:
| Age Group | Average 401(k) Balance |
|---|---|
| 20-24 | $7,300 |
| 25-29 | $24,000 |
| 30-34 | $45,700 |
| 35-39 | $73,200 |
| 40-44 | $109,100 |
| 45-49 | $152,100 |
| 50-54 | $199,900 |
| 55-59 | $244,900 |
| 60-64 | $246,500 |
| 65-69 | $251,400 |
| 70+ | $250,000 |
I find it particularly interesting that the growth in retirement savings seems to plateau around age 60. This could reflect people beginning to draw from their accounts, market fluctuations, or simply a generational difference in saving habits.
Retirement Savings by Generation in 2020
Another way to look at the data is by generation. Here’s what Fidelity’s research showed for both 401(k) and IRA balances in 2020:
| Generation | Average 401(k) | Average IRA |
|---|---|---|
| Gen Z | $13,500 | $6,672 |
| Millennials | $67,300 | $25,109 |
| Gen X | $192,300 | $103,952 |
| Baby Boomers | $249,300 | $257,002 |
These generational differences make sense when you consider factors like career stage, earning potential, and the amount of time each group has had to save. But they also highlight a concerning trend – many people don’t start saving seriously for retirement until later in life.
How Much Should You Have Saved for Retirement?
However, the more important question is whether or not these savings are enough. How much SHOULD you have saved for retirement?
According to Fidelity, here’s a good rule of thumb for retirement savings targets based on your annual income:
| Age | Target (Multiple of Annual Income) |
|---|---|
| 30 | 1x annual income |
| 40 | 3x annual income |
| 50 | 6x annual income |
| 60 | 8x annual income |
| 67 | 10x annual income |
So if you’re earning $60,000 at age 40, you should ideally have around $180,000 saved for retirement. By retirement age, you should aim for about 10 times your final salary.
But other financial experts suggest slightly different targets. For example, some recommend:
| Age | Target (Multiple of Annual Income) |
|---|---|
| 35 | 1x annual income |
| 50 | 5x annual income |
| 70 | 7x annual income |
Don’t be scared off by these numbers. Setting a goal of saving enough money for six months’ worth of pay by age 30 is already a good start.
Why Americans Struggle to Save for Retirement
When I look at these numbers, I can’t help but wonder: why are so many Americans falling behind on retirement savings? There are several factors at play:
- Stagnant wages – Despite rising costs of living, wages haven’t kept pace for many Americans
- Student loan debt – Many millennials and even Gen Xers are still paying off education debt
- Housing costs – The percentage of income spent on housing has increased dramatically
- Healthcare expenses – Medical costs continue to rise faster than inflation
- Lack of access to retirement plans – Not all employers offer 401(k)s or similar options
- Financial literacy gaps – Many people simply don’t understand how to save effectively for retirement
Plus, let’s be honest – retirement seems really far away when you’re young, and there are always more immediate financial priorities competing for your hard-earned dollars.
The Power of Starting Early: Compound Growth
One of the most crucial aspects of retirement savings is the time factor. The earlier you start, the more dramatic the results, thanks to compound interest.
Let me show you a quick example that blows my mind every time I think about it:
If you started contributing to a 401(k) at age 30 with an annual salary of $40,000 (assuming a 3% annual salary increase), and you contributed 10% per month, you would have approximately $1,858,809 by age 67, assuming a 7% annual return.
But if you waited until age 45 to start the same savings plan? You’d only have about $364,660 in your retirement account.
That’s a difference of nearly $1.5 MILLION dollars, just for starting 15 years earlier! This perfectly illustrates why even small contributions made early in your career can dramatically outperform larger contributions made later.
Where Americans Keep Their Retirement Savings
In 2020, Americans had:
- $12.2 trillion invested in 401(k)s
- $16.8 trillion in IRAs
The total retirement assets in the U.S. reached about $43.4 trillion, reflecting the various vehicles Americans use to save for retirement.
Most retirement savers (about 95.1%) default to using target-date mutual funds in their retirement accounts. These “set it and forget it” investments automatically rebalance as you get closer to retirement, making them a convenient choice for many savers.
How to Boost Your Retirement Savings (Even If You’re Behind)
If you’re looking at these figures and feeling a bit discouraged about your own retirement savings, don’t worry! There are concrete steps you can take to improve your situation:
1. Max Out Tax-Advantaged Accounts
Take full advantage of 401(k)s and IRAs. For 2025, contribution limits are:
- 401(k): $23,500 ($31,000 if you’re 50 or older, $34,750 if you’re 60-63)
- IRA: $7,000 ($8,000 if you’re 50 or older)
These accounts offer tax advantages that can significantly boost your savings over time.
2. Get Your Full Employer Match
If your employer offers a 401(k) match, contribute at least enough to get the full match. This is literally free money! The average employer contribution is about 4.6% of pay, which can add up to a substantial amount over your working years.
3. Increase Your Income
This might seem obvious, but one of the most effective ways to save more is to earn more. This could mean:
- Looking for a higher-paying job
- Asking for a raise
- Taking on a side hustle
- Developing new skills that command higher pay
4. Cut Unnecessary Spending
Many financial experts recommend using the 50/30/20 budgeting system:
- 50% for essential expenses
- 30% for discretionary spending
- 20% for savings
Look for subscriptions you don’t use, dining out expenses that could be reduced, or other areas where you can trim your budget.
5. Consider a Roth Option
In 2020, about 94.4% of 401(k) plans offered a Roth option. Unlike traditional retirement accounts, Roth accounts don’t give you a tax break now, but you get tax-free withdrawals in retirement. This can be especially valuable if you expect to be in a higher tax bracket when you retire.
6. Automate Your Savings
Set up automatic transfers to your retirement accounts. What you don’t see, you don’t miss! Automation removes the temptation to spend money that should be saved.
The Reality Check: Planning for Retirement in America
Lemme be real with you for a minute – these statistics are a wake-up call. While some Americans are doing well with their retirement savings, many are far behind where they should be. The median retirement savings of just $6,450 (or even $21,120 using the expansive definition) isn’t going to support anyone for very long in retirement.
Social Security helps, of course. The average monthly Social Security retirement benefit in 2025 is approximately $1,976. But Social Security was never designed to be your only source of retirement income – it was meant to be supplemented with personal savings and pensions (which are increasingly rare these days).
My Take: Don’t Compare, Just Start Where You Are
I think one of the biggest mistakes we make is getting discouraged by comparing ourselves to averages or ideals. The truth is, the “average” is skewed by extreme savers, and the “ideal” savings targets can seem impossibly high if you’re starting from zero.
My advice? Just start where you are. If you haven’t saved anything yet, begin with whatever you can afford – even if it’s just 1% of your income. Then gradually increase your savings rate over time, especially when you get raises or bonuses.
The key is consistency and time. Even modest savings, given enough time to compound, can grow into significant amounts.
Final Thoughts: Beyond the Numbers
While these statistics give us a snapshot of retirement savings in America in 2020, they don’t tell the full story of retirement preparedness. Many Americans have other assets that could support their retirement, such as:
- Home equity
- Business ownership
- Rental properties
- Inheritances
- Part-time work in retirement
And let’s not forget that retirement itself is changing. Many people are working longer, either by choice or necessity, and the traditional concept of retiring completely at 65 is evolving.
The most important thing is to be intentional about your retirement planning. Understand where you stand today, set realistic goals for the future, and take consistent action to move toward those goals.
Whether you’re ahead of the curve or playing catch-up, there’s always room to improve your retirement outlook. The best time to start saving was 20 years ago. The second best time is today.
The power of consistently investing for retirement
Another way to measure how you are doing is to look at data for people who have been contributing to their workplace retirement plan for years and years. Being in the same plan with the same employer may provide some stability and routine, which may be helpful for saving over a long period of time.
Fidelity Investments Q4 2024 401(k) data based on 26,700 corporate defined contribution plans and 24. 5 million participants as of December 31, 2024. These figures include the advisor-sold market but exclude the tax-exempt market. Excluded from the behavioral statistics are nonqualified defined contribution plans and plans for Fidelitys own employees. Generations as defined by Pew Research: Baby boomers are individuals born between 1946 and 1964, Gen X are individuals born between 1965 and 1980, millennials include individuals born between 1981 and 1996, and Gen Z includes individuals born between 1997 and 2012.
To avoid a savings setback when changing jobs, try to ensure that youre able to save at least as much as you were saving at your previous job. If you cant swing it right away, make an appointment with yourself to check your retirement savings rate again in a few months.
Average retirement savings by age
It can be hard to list retirement savings by age because people may have money saved in places other than 401(k)s and IRAs. Real estate, brokerage accounts, savings accounts, nonretirement CDs—and even health savings accounts—could all be earmarked for someones retirement. But a look at 401(k) and IRA balances can give you a rough measure of how you are doing compared to your peers.
Source: Fidelity Investments Q4 2024 401(k) data based on 26,700 corporate defined contribution plans and 24. 5 million participants as of December 31, 2024. These figures include the advisor-sold market but exclude the tax-exempt market. Excluded from the behavioral statistics are nonqualified defined contribution plans and plans for Fidelitys own employees.
Average Retirement Savings At 60: Financial Advisor Insights
FAQ
What is the average retirement savings in the US?
How many Americans have $500,000 in retirement savings?
Approximately 9-10% of American households had $500,000 or more in retirement savings in recent surveys and data from 2022-2025.
How many people have $1,000,000 in retirement savings?
While a exact, real-time number isn’t available, estimates using the most recent Federal Reserve data from 2022 suggest around 3. 2% to 4. 7% of Americans have $1 million or more in retirement accounts.
What is the average 401k balance for a 60 year old?
| 20s | $102,635 | $38,971 |
|---|---|---|
| 30s | $203,531 | $79,966 |
| 40s | $407,675 | $162,143 |
| 50s | $622,566 | $251,758 |
| 60s | $573,500 | $187,957 |
What is the average retirement savings?
The average retirement savings in the U. S. is $87,000, but the average retirement savings by age, income, level of education, and race varies. The median retirement savings for American households is $87,000. Median retirement savings for Americans younger than 35 is $18,800.
How much money do Americans save for retirement?
In 2020, American adults between 32 and 61 years old had on average $ 131,631. 40 saved for retirement. Using an expansive definition, Americans averaged $282,554. 50 in savings. The median American adult had with $6,450. 00 using a strict reading of retirement savings, and $21,120. 00 with the more expansive definition.
How much money do you have in a retirement account?
Average household retirement savings: $462,410. Median household retirement savings: $130,000. After this point, average and median retirement account values begin to fall, as does the percentage of people who have retirement accounts. » Looking to boost your savings? Those 50 or older get higher 401 (k) contribution limits.
What is the average retirement age?
Data source: Federal Reserve (2024). According to the data, in 2019, 2051 Americans retired at or before June 30, 2062, and 2063 Americans retired between June 2, 2062, and 2064, before Medicare coverage starts at age 65. And, despite white Americans having higher retirement savings on average, their average retirement age tends to be higher than Black and Hispanic Americans.
When do you start saving for retirement?
Most retirement savings are accrued after the age of 35 (a trend that parallels the average net worth by age). Median retirement savings grow significantly every 10 years for Americans older than 35 years of age until they reach 75.
How much money should you put away for retirement?
Many financial pros recommend putting away 10% to 15% of your income for retirement, though that may not always be possible. While tracking where you fall compared to the average and median retirement savings by age could be helpful, keep in mind these numbers only tell a portion of the story.