Planning for retirement is crucial, yet many Americans fall short in their savings goals. Understanding the average retirement savings by age can provide valuable insights into where you stand and how to improve your financial future. Let’s explore the data and see how your savings compare.
📊 Average Retirement Savings by Age
According to the 2022 Survey of Consumer Finances by the Federal Reserve, the average retirement savings by age are as follows:
- 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
Note: These figures represent the average savings in defined contribution plans, such as 401(k)s and IRAs.
📈 Median Retirement Savings by Age
The median savings provide a clearer picture of what most people have saved, as they are not skewed by extremely high values:
- Under 35: $18,880
- 35–44: $45,000
- 45–54: $115,000
- 55–64: $185,000
- 65–74: $200,000
- 75 and older: $130,000
Source: Federal Reserve Survey of Consumer Finances, 2022
🧠How Do Your Savings Measure Up?
Financial experts suggest aiming to have saved a multiple of your annual income by certain ages:
- By age 30: 1x your annual income
- By age 40: 3x your annual income
- By age 50: 6x your annual income
- By age 60: 8x your annual income
- By age 67: 10x your annual income
These benchmarks are based on the assumption that you’ll need about 80% of your pre-retirement income annually during retirement.
💡 Tips to Boost Your Retirement Savings
- Start Early: The earlier you begin saving, the more you benefit from compound interest.
- Contribute Regularly: Aim to save at least 15% of your income annually, including employer contributions.
- Take Advantage of Employer Matches: If your employer offers a 401(k) match, contribute enough to get the full benefit.
- Diversify Investments: Ensure your portfolio is diversified to manage risk effectively.
- Review Annually: Regularly assess your retirement plan to stay on track with your goals.
Conclusion:
While the average and median retirement savings figures provide a benchmark, it’s essential to assess your personal financial situation and set realistic goals. By starting early, contributing consistently, and making informed investment choices, you can work towards a secure and comfortable retirement.
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