Average retirement savings in the United States
Take a closer look at what the average retirement savings is, explore median savings by age, and discover how you can adequately save for retirement.
Summary
The average retirement savings in the US is $65,000.
1 in 4 Americans have no retirement savings.
Connecticut leads the list with the highest retirement savings of $545,754, followed closely by Alaska and Vermont.
North Dakota has the lowest average retirement savings at $319,609.
The average retirement account balance for someone aged between 45 and 52 is $179,200, while for 55-64-year-olds, it is $256,244. Retirees have an average balance of $279,997.
How much does the average American save for retirement?
The average retirement savings is exactly what it sounds like — the amount of money the average American has saved for retirement.
The average American retirement savings is one factor to consider when calculating how much money to save for your golden years, and it can give you a good idea of how you compare to others.
A Federal Reserve survey put this figure at $65,000 and estimated that it would increase to $255,200.
These figures are far from healthy, as they indicate that many Americans aren’t saving enough money for retirement.
In fact, the Federal Reserve found that one in four Americans have no retirement savings at all. Based on this, the Employee Benefit Research Institute found that US households headed by a person between 25 and 64 have a collective $3.68 trillion less in retirement savings than they should.
Social Security is not enough to fund a well-rounded lifestyle after retirement, so it is important to save for those years.
What are the average retirement savings by state?
The table presents the average retirement savings by state, based on data from SoFi.
Connecticut leads the list with an average retirement balance of $545,754, followed closely by Alaska at $503,822 and Vermont at $494,569.
On the other hand, North Dakota has the lowest average retirement savings at $319,609, with Utah slightly above at $315,160.
| State | Average Retirement Balance |
|---|---|
| Connecticut | $545,754 |
| Alaska | $503,822 |
| Vermont | $494,569 |
| Virginia | $492,965 |
| New Jersey | $514,245 |
| New Hampshire | $512,781 |
| Maryland | $485,501 |
| Massachusetts | $478,947 |
| Minnesota | $470,549 |
| Washington | $469,987 |
| Iowa | $465,127 |
| North Carolina | $464,104 |
| Pennsylvania | $462,075 |
| Oregon | $452,558 |
| Colorado | $449,719 |
| South Dakota | $449,628 |
| South Carolina | $449,486 |
| Wisconsin | $448,975 |
| Georgia | $435,254 |
| Idaho | $437,396 |
| Texas | $434,328 |
| Arizona | $427,418 |
| Ohio | $427,462 |
| Florida | $428,997 |
| New Mexico | $428,041 |
| Indiana | $405,732 |
| Nebraska | $404,650 |
| Maine | $403,751 |
| Delaware | $454,679 |
| Michigan | $439,568 |
| Kentucky | $441,757 |
| Montana | $390,768 |
| Louisiana | $386,908 |
| New York | $382,027 |
| Wyoming | $381,133 |
| Rhode Island | $392,622 |
| Mississippi | $347,884 |
| Hawaii | $366,776 |
| Arkansas | $364,395 |
| Oklahoma | $361,366 |
| West Virginia | $370,532 |
| Nevada | $379,728 |
| North Dakota | $319,609 |
| Utah | $315,160 |
| D.C., Washington | $347,582 |
The average retirement savings by state (Sofi data)
The table offers insights into the variations in retirement savings across different states, highlighting the importance of financial planning and preparation for retirement.
You can also check out how to increase your retirement savings here.
What are the average retirement savings by age?
A 2022 Vanguard study, How America Saves, examined the average retirement savings by age among their customers and the median savings by age.
The table below presents the average and median retirement account balances categorized by age bracket, providing valuable information for individuals and financial planners alike to evaluate their retirement savings strategies.
| Age Bracket | Average Balance | Median Balance |
|---|---|---|
| 25 and younger | $6,264 | $1,786 |
| 25 – 34 | $37,211 | $14,068 |
| 35 – 44 | $97,020 | $36,117 |
| 45 – 54 | $179,200 | $61,530 |
| 55 – 64 | $256,244 | $89,716 |
| 65 and older | $279,997 | $87,725 |
Average retirement savings by age(Data from Vanguard)
To compare your retirement savings with the national average, start by working out the total amount of savings in all your retirement accounts, such as Roth IRA, SEP IRA, or Traditional IRA, as well as employer-sponsored retirement plans, such as 401(k) or 403(b).
When you know the total amount that you have saved for retirement so far, you can compare it to the average amount for your age group shown in the table above. If your total savings are below your group’s average retirement savings, you might want to consider increasing your contributions to your accounts or ask an experienced financial advisor for guidance.
What is the median retirement savings?
The median savings by age is usually a more representative figure than the average American retirement savings. This is because averages are often heavily skewed by the savings of the over- and underachievers in each age group.
According to the Economic Policy Institute, the median retirement savings for all working-age households in the U.S. is approximately $95,776. The table below shows the median savings by age according to SCF data from the Federal Reserve:
| Age Range | Average Retirement Savings |
|---|---|
| Under age 25 | $5,236 |
| Ages 25-34 | $30,017 |
| Ages 35-44 | $76,354 |
| Ages 45-54 | $142,069 |
| Ages 55-64 | $207,874 |
| Ages 65+ | $232,710 |
What are the average retirement savings by race?
Investopedia's report on median retirement savings for households aged 25 to 61 in the United States by race reveals significant disparities. White households have the highest median retirement savings at $79,500, while Latinx households have the lowest median savings at $23,000.
| Race | Median Retirement Savings |
|---|---|
| White | $79,500 |
| Asian-American | $67,025 |
| Black | $29,200 |
| Latinx | $23,000 |
Average retirement saving in us by race (Data from Investopedia)
What are the average retirement savings by gender?
According to data from SoFi and Investopedia, there is a notable difference in retirement savings between women and men. On average, women have a range of $23,000 to $62,000 in retirement savings, with a median of $43,000. In contrast, men have a range of $76,000 to $98,000, with a higher median of $91,000. These findings suggest that men tend to have higher retirement savings compared to women.
| Gender | Average Retirement Savings | Median Retirement Savings |
|---|---|---|
| Women | $23,000 - $62,000 | $43,000 |
| Men | $76,000 - $98,000 | $91,000 |
Average retirement saving in us by gender (Data from SoFi and Investopedia)
How much should I save for retirement?
Whether you live in Connecticut or North Dakota, what works for you will depend on a combination of factors, and it’s important to establish these as part of your planning.
How much you currently have saved, how much you plan to spend, where you want to retire, and what you want your retirement to look like will all factor into how much you should save.
To help answer these questions, it’s wise to seek our expert financial advice. A financial advisor works with you to create a unique retirement plan based on your needs and goals.
How to save for retirement in your 20s
Many Americans spend their 20s using entry-level paychecks to pay off student loans. Retirement isn’t first and foremost on their mind, as you can see from the average retirement savings by age. However, your 20s is a good time to start saving for retirement effectively by contributing to a company-provided 401(k).
Start an emergency fund when you’re in your 20s, as this can help protect your retirement savings from unexpected expenses. Another good reason to protect your savings for retirement is the 10% tax penalty on money you withdraw from an IRA before age 59½.
Let’s recap:
Contribute to your company’s 401(k) plan.
Start investing early.
Set up an emergency fund big enough to cover living expenses for three to six months.
How to save for retirement in your 30s
Many Americans reach important milestones in their 30s, such as starting a family and buying a house, and some are still paying off student debt. This is also a decade when some people have more established careers and earn bigger paychecks. The average retirement savings for this group is more than three times higher than for people in their 20s.
Plan for short-term expenses and prioritize long-term goals such as saving for retirement. Fine-tuning your budget and spending now can make it easier for you to reach your retirement savings goals. If possible, contribute at least 15% of your income to one or more retirement accounts. If you haven’t been saving towards retirement for long, try contributing more to catch up.
Let’s recap:
Budget strictly, especially if you want to start a family or buy a house.
Save at least 15% of your income for retirement.
Start saving for important other goals, such as your child’s college education.
How to save for retirement in your 40s
If you’re wondering how much retirement you should have at 40, you might be surprised to hear that the recommended amount can be as high as three times your annual salary. This is not realistic for most Americans in this age group.
There are a few things you can do if you aren’t meeting this goal. If possible, save money you receive unexpectedly, such as an inheritance, bonus, or pay rise, into a retirement account. If you have paid off your student debt, place more focus on saving for retirement. Prioritize this after essentials such as mortgage, food, and utilities when you budget.
Let’s recap:
Focus on retirement savings after paying off your student loans.
Put unexpected windfalls into your retirement account.
Prioritize retirement savings after essentials in your budget.
How to save for retirement in your 50s
Focus on saving for your retirement if you haven’t already started doing this when you turn 50. A good goal to aim for by your 50s is to have saved up to seven times your annual salary. This can be a difficult goal to reach, but if you can get there, it can help you to retire more comfortably.
If you are nowhere near to what the average retirement savings are for your age group, see if you can make changes to your budget and save more money.
One route you can take is to speak to a financial advisor about adjusting your IRA. Avoid withdrawing from your IRA when you reach 59½ years of age, if possible, to ensure you have a larger pool of savings later.
Let’s recap:
Speak to a financial advisor about your IRA.
Make catch-up contributions to your IRA and 401(k) or 403(b).
How to save for retirement in your 60s
Your 60s bring you right to the threshold of retirement.
In this decade, it’s important to consider your goals and plans for the next phase in your life. Your retirement savings should help you to maintain your current lifestyle and cover new costs you may incur, such as medical costs. If you dream of traveling the world or buying a beach house in a beautiful location, your savings should be able to make that possible.
Revisit your savings plan and make any changes that you or your financial advisor think are necessary. If you need to save more, delaying retirement is a popular option among retirees. Some also choose to delay claiming Social Security benefits before their 70th birthday, as this is when the benefit increase stops.
Let’s recap:
Review your retirement savings plan and your goals, ensuring they reflect the lifestyle you want to maintain.
Revisit your retirement plan with your financial advisor and make any necessary adjustments.
If you haven’t saved enough money, you still have options to increase your retirement fund.
Summing up retirement savings
Making sure that you’re well-covered financially when you reach the end of your working life is serious business. Saving for your retirement requires careful consideration, thorough planning, stringent budgeting, and the resolve to stick to your decisions and go beyond the average retirement savings in America.
An SEC-regulated financial advisor you can trust can help you navigate through this all. By considering your financial plans, assets, needs, and wishes, they will collaborate with you to create the bespoke retirement savings plan that’s best for you and your family’s financial goals.
Answer a few questions, and we'll connect you to an SEC-regulated financial advisor. Get matched with an advisor here.
Writer
Charlie Barton is a writer at Unbiased. He has been writing about personal finance and investing since 2017, with extensive knowledge of platforms and products. Charlie has a first-class degree from the London School of Economics.