The average American has $11,200 in savings if they are under 35 years old. This group includes people just starting their careers. They may benefit from employer-sponsored retirement funds such as a 401(k).
It’s often recommended to save enough to get matching funds from an employer’s plan if available. Americans aged 35 to 44 have an average savings of $27,900. At this stage, having three to six months’ worth of expenses in an emergency fund is a good idea.
Investing in the stock or bond market and consistently contributing to retirement funds, like a 401(k), are also advisable. The average 401(k) savings for this age group is $38,400. People between 45 and 54 have an average savings of $48,200.
Financial advice commonly suggests having at least six times one’s annual salary saved by age 50 to aim for retirement at 67. For this age group, average retirement savings are around $93,400. Those aged 55 to 64 have an average savings of $57,800.
As retirement nears, it’s essential to maximize retirement contributions. For individuals 60 to 63, the allowed catch-up contributions are higher, thanks to SECURE 2.0 legislation.
Americans’ savings trends by age
For 2025, those aged 60 to 63 can contribute an additional $11,250 to their retirement savings. The average retirement savings account balance for individuals between 50 and 59 is $160,000. Savings typically peak for Americans aged 65 and older, with an average savings of $60,400.
However, this number tends to decrease after age 75, with an average savings balance of $55,600. Hence, creating a retirement budget and sticking to it is crucial to ensure sufficient funds throughout retirement. Ideally, individuals in their 60s should aim to have around $182,100 in retirement savings.
Life events such as pregnancy, child-rearing, and education come with big costs. For instance, out-of-pocket expenses for pregnancy and delivery can be around $3,000, and raising a child through age 17 can cost more than $18,000. College education can range from $44,000 to over $150,000, and with increasing life expectancies, having substantial savings is essential for a comfortable retirement.
According to a 2023 survey by the Employee Benefit Research Institute, only 18% of American workers are very confident about retiring comfortably, largely due to insufficient savings. More than half of Americans can’t cover an unexpected $1,000 expense, and 37% can’t manage a $400 emergency, according to Bankrate’s 2023 emergency savings report and the Federal Reserve’s 2022 report on the economic well-being of U.S. households. The median savings, which is the middle value of the savings amounts, is often lower than the average.
Here are the median savings by age according to the latest Federal Reserve Survey of Consumer Finances:
Under 35: $3,240
Ages 35 to 44: $4,710
Ages 45 to 54: $5,620
Ages 55 to 64: $6,400
Americans’ savings vary widely by age and individual circumstances. Understanding average and median savings benchmarks can help set realistic goals for financial stability and retirement planning. Starting early and consistently saving, whether through emergency funds or retirement accounts, is key to building a secure financial future.
Photo by; Rod Long on Unsplash