Key Takeaway
Average retirement savings by age range from a median of $18,880 for households under 35 to $185,000 for households ages 55 to 64, according to the Federal Reserve’s 2022 Survey of Consumer Finances. These figures cover only the 54.3% of U.S. households that actually hold retirement accounts, so the averages skew higher than most people’s reality. Your real benchmark is not the national median but the income your own goals, taxes, and timeline require.
If you’re wondering whether you’re behind, here’s the direct answer. According to the Federal Reserve’s 2022 Survey of Consumer Finances (as analyzed by the Congressional Research Service), among U.S. households that hold retirement accounts, the median retirement savings balance ranged from about $18,880 for households younger than 35 to $185,000 for households ages 55 to 64. Average balances run far higher, climbing above $500,000 for older households, because a smaller number of high-balance savers pull the mean upward. These figures cover only households that actually have retirement accounts, and they’re reported in 2022 dollars.
That benchmark is a useful starting point. It’s not a plan. Below, we’ll walk through the average retirement savings by age, explain why the average can mislead you, and then move to the question that matters more: whether your total retirement savings can actually produce the income and peace of mind you want in retirement.
Average Retirement Savings by Age Group (Federal Reserve Survey Data Table)
The table below comes from CRS analysis of the Federal Reserve survey, the 2022 Survey of Consumer Finances. Balances reflect households with positive retirement account balances, meaning households with no retirement savings are excluded from the median and average figures. Reading the average retirement savings by each age group this way keeps the comparison honest.
| Age of household | % with retirement accounts | Median balance | Average balance |
|---|---|---|---|
| Younger than 35 | 49.6% | $18,880 | $49,127 |
| 35–44 | 61.5% | $45,000 | $141,517 |
| 45–54 | 62.2% | $115,000 | $313,230 |
| 55–64 | 57.0% | $185,000 | $537,563 |
| 65 and older | 47.1% | $170,000 | $554,422 |
| All households with accounts | 54.3% | $87,000 | $334,097 |
Only 54.3% of U.S. households hold a defined contribution account or IRA at all, which is worth keeping in mind as you read these numbers. It also explains why the average retirement savings balance for any single age group can look surprisingly strong even when many people in that group have saved little or nothing.
Average vs. Median Retirement Savings: Which Number Matters?
The two numbers answer different questions. The average retirement savings figure is total retirement savings divided by the number of savers, so a handful of very large accounts drags it upward. The median is the midpoint: half of savers have more, half have less. Look at households ages 55 to 64. Their median balance is $185,000, but their average is $537,563. That’s nearly a $350,000 gap, and it exists because high-balance households skew the mean.
For most readers, the median gives a more honest picture of the typical household. If you’re a high-net-worth saver, though, neither national figure tells you much. Your real benchmark isn’t the country’s midpoint. It’s the income your own financial goals, taxes, and timeline require.
What Counts as Retirement Savings in These Retirement Accounts?
When the Federal Reserve and CRS report “retirement accounts,” they mean a specific category: defined contribution employer plans and IRAs. That includes some assets and excludes others, which changes how you should read the numbers.
- Included: 401(k), 403(b), thrift savings plans, traditional and Roth IRAs, Keogh accounts
- Excluded: defined benefit pensions, Social Security benefits, and home equity
This matters in both directions. A household with a modest account balance might still have a solid pension and Social Security behind it. Another household with a large 401(k) might face real gaps once you account for taxes, spending, and healthcare. Because employer plans dominate most people’s retirement savings, the 401 k balance often carries a lot of weight in these figures, but the account balance is one input, not the whole financial picture. Brokerage accounts and other holdings sit outside this category entirely, yet they shape your true retirement readiness.
Average Retirement Savings by Age Group: What the Numbers Suggest at Each Stage
Under 35: Habit Formation and Compounding
Balances are lowest here, and that’s expected. Roughly a quarter of adults ages 18 to 24 have a tax-advantaged account. What you own at this stage matters less than the habit you build. The most important move for this age group is simply to start saving early, because money invested in your twenties has decades to compound, so even modest, consistent contributions carry outsized weight. Automating a savings rate now reduces the pressure you’ll feel later, and when you save early and direct part of every paycheck into a 401(k), you make saving for retirement automatic.
35–44: Rising Income and Competing Priorities
Income climbs, but so do mortgages, childcare, and other demands. The median balance rises to $45,000, and this is where automation earns its keep. A common guideline is a share of salary saved each year, often 12% to 15% of income across all retirement accounts. Setting retirement contributions to increase automatically keeps you moving forward even when the budget feels tight, and capturing your full employer contributions along the way adds meaningful ground to your retirement goals.
45–54: Peak Earning and Tax Coordination
These are often your highest-earning years, with a median balance around $115,000. This is the stage where tax coordination starts to matter. Which accounts you fund, and in what order, affects what you keep. Deciding between traditional and Roth contributions in your 401(k), and thinking through where different assets should live, becomes a real retirement planning question rather than an afterthought. A Roth may also qualify you for the Saver’s tax credit at lower income levels.
55–64: Catch-Up and Income Modeling
With a median of $185,000, this group is close enough to retirement that the conversation shifts from accumulation to design. This is also the age group where many baby boomers finalize their exit strategy. A catch up contribution becomes available, and it’s the right time to model your future income, review your risk tolerance, and start thinking about when to claim Social Security. Some savers at this stage discover they have the substantial savings needed to retire earlier than planned.
65+: Distribution, RMDs, and Legacy
The focus turns to turning retirement savings into reliable income, managing required minimum distributions, staying tax-efficient, and coordinating estate and legacy goals. Many baby boomers reach this stage with the bulk of their wealth in employer plans and IRAs. The median balance holds around $170,000, but by now the balance matters less than how well it’s structured to support you.
Why Being Above the Average 401(k) Doesn’t Always Mean You’re Ready
A large balance is reassuring. It’s also incomplete. Two people with $1 million can be in very different positions. A $1 million traditional IRA is taxable on the way out, while a $1 million taxable portfolio has already been taxed and may qualify for favorable capital gains treatment. Same headline number, very different after-tax outcomes.
Readiness depends on your actual spending, your healthcare costs, your life expectancy, and how your portfolio holds up through market downturns. Two people the same age can face very different math depending on their investment returns and cash flow needs. If you’re a professional sitting on concentrated RSUs or stock options, or a business owner whose wealth is tied up in the company, your risk looks nothing like a national average. Debt and legacy goals shift the math further. The honest question for accomplished savers usually isn’t “do I have enough?” It’s “am I leaving money on the table, and is any of this actually coordinated?”
Below the Average IRA Balance? You Still Have Options
Falling below the median, or below the average IRA balance for your age, doesn’t put retirement out of reach. It means the levers you pull now matter more, and several of them are genuinely powerful.
- Increase your savings rate, even in small annual steps
- Use catch-up contributions once you turn 50
- Adjust your expected retirement age, which can meaningfully change the math
- Locate assets tax-efficiently across account types
- Coordinate Social Security timing with the rest of your plan
- Confirm you’re capturing every available dollar of your employer match
The goal is a disciplined, repeatable plan rather than a reactive scramble. Wherever you are on the journey, steady choices and other financial best practices tend to outperform sudden ones, and there’s real room to close a gap when you approach it methodically. Online financial tools tend to help here, since a clear view of your accounts makes each decision easier. Empower’s online financial dashboard, for example, is one of several online financial tools that let plan participants track balances in one place, and the Empower Personal Dashboard™ can consolidate the full picture for savers who want to monitor progress themselves.
2026 401(k) and IRA Contribution Limits and Catch-Up Opportunities
If you want to save more, the IRS sets how much you can contribute. Here are the 2026 figures for the most common retirement accounts.
| Contribution type (2026) | Limit |
|---|---|
| 401(k) employee deferral | $24,500 |
| Age 50+ 401(k) catch-up | $8,000 |
| Ages 60–63 higher 401(k) catch-up | $11,250 |
| IRA contribution limit | $7,500 |
| IRA limit, age 50+ | $8,600 |
One rule that catches high earners off guard: beginning in 2026, if your prior-year wages from the workplace plan sponsor exceed $150,000, your 401(k) catch-up contributions must be made on a Roth basis under SECURE 2.0. That changes the tax planning for a lot of well-compensated professionals. If your employer offers a match, capturing the full match is one of the most reliable ways to accelerate your retirement savings. These limits change annually, so confirm the current figures with the IRS before you act.
The Better Question: How Much Retirement Income Will You Need?
Balances answer the wrong question. The one that matters is how much annual spending your plan has to support, and where that potential income comes from. For context, consumer units headed by someone 65 or older spent an average of $61,432 in 2024, according to BLS data. The estimated average monthly Social Security benefit for retired workers in January 2026 is $2,071, following a 2.8% cost-of-living adjustment.
Treat those as national reference points, not personal targets. Your number depends on your retirement lifestyle and your obligations, and often on the share of your pre retirement income you want to replace. Many planners aim to replace a large portion of annual income so your current lifestyle carries into retirement. Timing decisions shape the outcome too. Full retirement age is 67 for anyone born in 1960 or later, and delaying benefits changes your monthly income. Required minimum distributions currently begin at age 73, moving to 75 for younger cohorts under SECURE 2.0. Each of these is a coordination point, not a standalone decision, and each one ties your current savings back to the income you’ll eventually draw.
How a Fiduciary Financial Advisor Turns Savings Into a Plan
This is where a benchmark becomes a strategy. At Towerpoint Wealth, we’re a fully independent, fiduciary-first Registered Investment Adviser, which means we’re legally obligated to act in your best interest. We’re free from corporate agendas, production minimums, and proprietary product sales, so the advice you get is built around your financial goals rather than someone else’s quota. A fiduciary financial professional looks at your whole financial situation, not one statement.
Turning savings into a plan means coordinating the moving pieces: retirement income planning, investment management, proactive tax planning, estate planning, business transition strategy, and RSU or stock option decisions where they apply. It also means looking past a single 401(k) statement to your total retirement savings across every account. Those pieces interact, and when they’re managed in isolation, opportunities and financial security get missed. Our team brings credentials that back the work, including CFP®, CPA, and CIMA® professionals, and we custody client assets at Charles Schwab. The result we’re after is clarity and confidence, so your financial affairs are coordinated and you can actually enjoy what you’ve built and retire comfortably.
Frequently Asked Questions
How many Americans have 0,000 in retirement savings?
How many people have million in retirement savings?
What is a good 401(k) balance at age 65?
Is million or million enough to retire?
Let’s Talk About Your Financial Future
If you’re ready to move from comparing yourself to a benchmark toward a plan built around your own financial goals, we’d welcome the conversation. From our Sacramento headquarters at 500 Capitol Mall, Suite 2060, we work with clients across multiple states. Call us at (916) 405-9140 to Speak With An Advisor and begin a partnership focused on your retirement.
This article is for educational purposes only and does not constitute investment, tax, or legal advice. Past performance is no guarantee of future returns, and investing involves risk, including possible loss of principal. Please consult qualified tax and legal professionals for guidance specific to your situation.
