Saving Plans for Retirement Based on Age
In the United States, retirement savings can be found in various forms, including Individual Retirement Accounts (IRAs), 401(k)s, Health Savings Accounts (HSAs), after-tax accounts like Roth IRAs, mutual funds, and brokerage accounts. The Federal Reserve's Survey of Consumer Finances (SCF) 2022 data reveals a significant increase in average retirement savings with age.
| Age Range | Average Retirement Savings | |------------|-----------------------------| | Under 35 | $49,130 | | 35-44 | $141,520 | | 45-54 | $313,220 | | 55-64 | $537,560 | | 65-74 | $609,230 | | 75 and older | $462,410 |
This data encompasses all types of retirement accounts combined, including IRAs, 401(k)s, and pensions. However, it's important to note that median retirement savings are notably lower due to distribution skew:
| Age Range | Median Retirement Savings | |------------|-----------------------------| | Under 35 | $18,800 | | 35-44 | $45,000 | | 45-54 | $115,000 | | 55-64 | $185,000 | | 65-74 | $200,000 |
These figures provide a comprehensive snapshot of the retirement savings landscape across age groups in the U.S. The data indicates that half of families have less than these amounts saved, highlighting how many individuals have relatively modest retirement savings.
Additional context reveals that the wide gap between average and median savings points to a small percentage of households with very high savings pulling up the average. Financial advisors often suggest benchmarks such as saving multiples of annual income to guide progress toward retirement readiness.
However, the Federal Reserve's SCF reports that over half of American households (54%) report having no dedicated retirement savings. This statistic underscores the need for individuals to focus on building their retirement savings.
The retirement assets accounted for 34% of all household financial holdings in the U.S. as of December 2024. To get a sense of where you stand relative to your peers, the average and median retirement savings for your age can be found.
As the retirement landscape evolves, it's crucial for individuals to stay informed and take proactive steps towards securing their financial future. The Social Security trust fund is expected to be insolvent by 2033, potentially leading to benefit reductions. Therefore, building a robust retirement savings portfolio becomes even more essential.
Mining personal-finance data for insights, it's alarming to find out that over half of American households (54%) report having no dedicated retirement savings, which emphasizes the importance of focusing on personal-finance management and building retirement savings. Moreover, the retirement assets accounted for 34% of all household financial holdings in the U.S., indicating a significant role that retirement savings play in personal-finance, highlighting the need for wise investment decisions in mining these assets, such as investing in diverse options like IRAs, 401(k)s, and mutual funds.
