Average Retirement Savings by Age: What You Need to Know

As soon as you start your career, you should start thinking about your pension—the sooner you begin saving for your old age, the better lifestyle you will have in the future. The idea of ​​planning something when your goal is decades away may seem difficult, but it’s actually not that difficult with the right and effective approach.

No one knows how much money you might need for life after work, but some numbers of average savings at retirement can give you a starting point. The right solution is to analyze your income and expenses, look for ways to save more money, manage your finances effectively, focus on long-term goals, and plan ahead to fill any gaps.

Keep reading to find out why it’s so important to save for senior years early and to find out the median and average savings by age so you can assess your retirement prospects.

Why Are Retirement Savings Important?

Saving for retirement now is what will allow you to experience financial freedom in the future. However, statistics show that many people don’t have enough money when they retire—according to a 2024 AARP survey, 31% of respondents aren’t sure they’ll have enough money when they end their careers. Another 33% are confident that they will definitely not have enough reserves before withdrawal from work.

So, when it comes to saving for golden years, it’s best to start as early as possible. Saving for retirement at a young age will lead to monetary freedom and financial well-being when you are no longer working. When it comes to how much you should save, it depends primarily on your current age, your expected retirement age, and, most importantly, what kind of lifestyle you plan to have in the post-career phase. The good news is that with proper and effective planning, you can hope to maintain your pre-retirement lifestyle or even prepare for your rest period expenses to be higher than they are now. You may be planning to help your children and travel a lot, but in order to achieve such a life in the future, you need to think about it right now.

In general, the recommendations boil down to the following tips: try to save at least 1 times your salary by age 30, 3 times more by age 40, 6 times more by age 50, 8 times more by age 60, and 10 times more by age 67 years old. Such pension reserves can definitely guarantee you a good life during your golden years and even a comfortable old age.

To help you create a savings plan and assess your current position in preparing for retirement, we suggest you consider average and median savings by age.

The Size of Average Retirement Savings by Age

Let’s look at and compare average retirement savings by age as of 2024, according to the Federal Reserve Board.

The Size of Median Retirement Savings by Age

An important point is that averages can often be skewed and not give a fully representative picture since, in each age group, there may be those who are far behind the majority or, conversely, who are far ahead of the rest of the group.

So, to get more informative and fair data, let’s compare median retirement savings by age. The median numbers provided below are also consistent with data from the Federal Reserve Board.

Now, let’s analyze each age group in detail.

Up to 35 Years Old

• Average household savings: $49,130;
• Median household savings: $18,880.

According to official data provided by the Survey of Consumer Finances, nearly 50% of young people under the age of 35 have a retirement account. Among this age group, the average retirement savings is $49,130, ​​and the median is $18,880.

35–44 Years Old

• Average household savings: $141,520;
• Median household savings: $45,000.

More than 60% of representatives in the 35–44 age group have retirement accounts. The average and median pension reserves for this group are significantly higher than for people under 35—they are $141,520 and $45,000, respectively.

45–54 Years Old

• Average household savings: $313,220;
• Median household savings: $115,000.

As for the group of people aged 45 to 54, as in the case of the group of 35–44, 62% of families headed by people in this age range have retirement reserves. The numbers are even higher for this group—the average balance amount is $313,220, and the median is $115,000.

55–64 Years Old

• Average household savings: $537,560;
• Median household savings: $185,000.

According to a survey conducted among baby boomers, about 57% of people aged 55 to 64 have retirement savings. By the way, this group is close to reaching full retirement age, and their average and median household retirement reserves are $537,560 and $185,000, respectively.

65–74 Years Old

• Average household savings: $609,230;
• Median household savings: $200,000.

Speaking about retirement savings by age, the majority of representatives of the 65–74-year-old group have already reached retirement age. Thus, 51% of respondents in this range have retirement accounts, and their sizes are the highest among all age groups—$609,230 average retirement reserves and $200,000 median retirement savings.

75 Years and Older

• Average household savings: $462,410;
• Median household savings: $130,000.

The number of people over 75 with retirement reserves is decreasing, and the value of their retirement accounts is also dropping. Thus, the average amount of pension reserves for representatives of the 75+ age group is $462,410, and the median amount is $130,000.

Final Thoughts

No matter how old you are, you can start ensuring your comfortable post-career phase at any age. While you can’t exactly predict the optimal amount to save for retirement, estimating your needs, looking at your current savings balance, and comparing what you have saved with other people’s retirement accounts can help you prepare for your upcoming retirement.

In this article, we have provided a detailed overview of recommended retirement savings by age—and while knowing this data may not make a big difference to you, understanding the averages and medians for each age group allows you to compare your retirement savings to others, leading to improved financial well-being on your path to retirement.

The important insight is that retirement reserves increase with age—typically due to increased income, compound interest, and so on. One way or another, in addition to learning and comparing median and average money saved by age, it is significant to understand that the amount of income, retirement age, and many other factors also influence pension savings.

No matter how old you are, your main goal is to turn your savings into a reliable source of pension security. This means focusing on long-term goals, increasing income, cutting expenses, and investing money. Effective planning is the key to well-being in retirement.