Saving for retirement is a massive financial goal. Not only do you need to save a sizable amount of money now, but the consequences of not doing so can be severe. With the decline of defined-benefit plans — in which employees receive a steady paycheck in retirement thanks to employer-funded pensions — the responsibility to save for retirement has shifted primarily to the individual.
Planning for retirement is a big responsibility, but it isn’t a one-size-fits-all journey. Retirement savings looks different depending on your age, income, and financial priorities. The latest data on average retirement savings by age offers a snapshot of how Americans are preparing for the future, which you can use as a benchmark to help you measure your own progress.
Knowing how much you should save for retirement is one thing, but actually doing it is another. If you’re behind on retirement savings, you aren’t alone.
Here’s a look at the average and median retirement savings by age as of 2022, according to data from the Federal Reserve:
According to T. Rowe Price, you should have 1 to 1.5 times your gross income saved for retirement by age 35. So, for example, a 35-year-old earning $60,000 would be on track if they had about $60,000 to $90,000 in retirement savings.
Looking at these averages, it appears that Americans are generally on track for retirement. However, average numbers can be inflated by high-net-worth individuals, which is why median figures offer a clearer picture.
As the data show, the average 67-year-old retiree has $609,230 in retirement savings. But the median retiree — which may be a more accurate representation — has less than a third of that, at $200,000.
While retirement assets can include more than just a 401(k), the balance of this account can often be a good initial measure of your retirement savings health. Here’s some recent data (as of Q4 of 2024) from Fidelity, which breaks down the average 401(k) balance by age:
It’s possible that you find these statistics more stress-inducing than helpful. If that’s the case, try not to worry and, instead, focus on what you can do to improve your savings. The following strategies can help accelerate your retirement savings at any point in your life.
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Prioritize your 401(k) match: If money’s tight and you can’t maximize your retirement accounts, that’s okay. But do whatever you can to get your employer’s matching contribution, if they offer it. For example, if your employer’s 401(k) matches up to 5%, strive to contribute at least 5% to capitalize on that free money.
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Contribute to an IRA: If you’re maxing out your workplace retirement plan and still have cash to spare, you can save more for retirement with an IRA. Keep in mind that Roth IRA contributions may be limited if your income exceeds certain thresholds.
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Make catch-up contributions: If you’re at least 50 years old, you can make up for lost time with catch-up contributions to your retirement accounts. Catch-up contribution limits vary by account type. For instance, as of 2025, catch-up limits for 401(k)s and 403(b)s is $7,500. For IRAs, it’s $1,000.
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Build a better budget: If you’re struggling to put money away for retirement, you may need to review your budget. See if you can reduce your monthly expenses and divert more cash toward retirement savings. This does two things: It helps you get used to a more affordable lifestyle, and it frees up more money for your 401(k) or IRA.
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Work longer: If you’re able to continue working past traditional retirement age, you can continue saving for retirement and shorten the amount of time you’ll need to rely on your retirement savings. However, you’ll generally need to make required minimum distributions (RMDs) beginning at age 73, though some exceptions apply if you’re still working.
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Delay Social Security: If you can afford to delay Social Security benefits for a period of time, you’ll receive larger payments. Social Security benefits increase by a certain percentage each month you delay taking them, up to age 70.
According to 2022 data from the Federal Reserve’s Survey of Consumer Finances, roughly 54.3% of U.S. households have retirement account assets. Of those, 4.6% have assets totalling more than $1 million. Taken together, this data shows that about 2.5% of all U.S. households have more than $1,000,000 in retirement savings.
According to data from Fidelity, the average 401(k) balance for those ages 65 to 69 is $251,400.
A good monthly retirement income varies by cost of living, net worth, age, and other factors. For a general guideline, the 4% rule says you can safely withdraw 4% of your retirement savings each year. For example, say you have $1 million in retirement savings. According to this rule, you can safely withdraw 4% of this amount, or $40,000, per year. This breaks down to about $3,300 per month.
