How much should you have saved for retirement at your age? The gap between recommended targets and reality is striking. Here’s what the data shows.
Table of Contents
Average and Median Retirement Savings by Age
The difference between average and median tells the full story — a small number of well-funded accounts pull the average far above what most people actually have.
| Age Group | Average Balance | Median Balance | Recommended (10x salary by 67) |
|---|---|---|---|
| Under 25 | $7,351 | $2,240 | Getting started |
| 25–34 | $37,211 | $13,265 | 1x salary (~$50K) |
| 35–44 | $97,020 | $44,990 | 3x salary (~$180K) |
| 45–54 | $179,200 | $71,168 | 6x salary (~$360K) |
| 55–64 | $256,244 | $89,716 | 8x salary (~$480K) |
| 65–74 | $282,886 | $98,853 | 10x salary (~$600K) |
| 75+ | $234,960 | $83,442 | Drawing down |
Source: Federal Reserve Survey of Consumer Finances and Vanguard “How America Saves” data.
The Retirement Savings Gap
At every age group, the median saver has far less than recommended:
| Age | Recommended | Median | Gap |
|---|---|---|---|
| 35 | $120,000 (2x) | $13,265 | -$106,735 |
| 45 | $240,000 (4x) | $71,168 | -$168,832 |
| 55 | $420,000 (7x) | $89,716 | -$330,284 |
| 65 | $600,000 (10x) | $98,853 | -$501,147 |
The median 65-year-old has roughly one-sixth of the recommended retirement savings. Social Security fills some of this gap, but many Americans face a significant shortfall.
Retirement Savings by Account Type
Americans save for retirement through multiple account types:
| Account Type | Avg. Balance | % of Workers Participating |
|---|---|---|
| 401(k)/403(b) | $112,572 | 58% of workers with access |
| Traditional IRA | $120,376 | 17% of households |
| Roth IRA | $44,843 | 16% of households |
| Pension/Defined Benefit | Varies | 15% of private workers |
Many workers have balances in multiple accounts. The total across all accounts matters more than any single balance.
How You Compare: Retirement Savings Percentiles
Ages 35-44
| Percentile | Retirement Balance |
|---|---|
| 10th | $0 |
| 25th | $10,200 |
| 50th (Median) | $44,990 |
| 75th | $141,000 |
| 90th | $338,000 |
Ages 55-64
| Percentile | Retirement Balance |
|---|---|
| 10th | $0 |
| 25th | $19,000 |
| 50th (Median) | $89,716 |
| 75th | $283,000 |
| 90th | $733,200 |
Why the Numbers Are So Low
1. Late Start
Many Americans don’t begin saving for retirement until their 30s or 40s, missing the most powerful years of compound growth.
2. No Access to Employer Plans
Roughly 57 million American workers don’t have access to a retirement plan through their employer, particularly in part-time, gig, and small-business jobs.
3. Cashing Out Early
About 40% of workers who change jobs cash out their 401(k) rather than rolling it over, losing years of compound growth and paying penalties.
4. Low Contribution Rates
The average 401(k) contribution rate is about 7% of salary. At that rate, many workers won’t accumulate enough by retirement even with employer matches.
5. Debt Burden
Student loans, credit card debt, and housing costs compete directly with retirement savings, particularly for younger workers.
How to Catch Up
If You’re In Your 20s-30s
- Start now — even $200/month at 7% for 35 years = $400,000+
- Max out any employer match (free money)
- Consider a Roth IRA for tax-free growth
If You’re In Your 40s
- Increase contributions aggressively — aim for 15-20% of income
- Take advantage of the catch-up trajectory as expenses may decrease
- Pay off high-interest debt to free up savings capacity
If You’re In Your 50s-60s
- Use catch-up contributions: extra $7,500 for 401(k), extra $1,000 for IRA
- Consider delaying Social Security to age 70 for a ~76% higher monthly benefit
- Reduce expenses and eliminate debt before retirement
- Consider part-time work in early retirement
What the Average Social Security Check Provides
The average monthly Social Security benefit in 2026 is approximately:
| Recipient Type | Monthly Benefit | Annual |
|---|---|---|
| Retired worker (average) | $1,920 | $23,040 |
| Retired worker (maximum at 67) | $3,822 | $45,864 |
| Retired couple (average) | $3,400 | $40,800 |
For many middle-income retirees, Social Security replaces 30-40% of pre-retirement income. The rest must come from savings.
Retirement Savings by Income Level
Higher earners save more in absolute terms but often have larger gaps relative to their needs:
| Household Income | Median Retirement Savings | Savings Rate |
|---|---|---|
| Under $25,000 | $4,800 | 2% |
| $25,000–$49,999 | $22,000 | 3-4% |
| $50,000–$74,999 | $55,000 | 5-6% |
| $75,000–$99,999 | $95,000 | 7-8% |
| $100,000–$149,999 | $175,000 | 9-10% |
| $150,000+ | $450,000 | 12-15% |
Related: How Much Do You Need to Retire? | Net Worth Percentile by Age | Compound Interest Calculator | 401(k) Contribution Limits
