Saving for retirement can be a daunting task, but a recent survey of 1,000 working Americans aged 21 and older sheds light on how much people believe they should have saved by age 65. The survey, conducted in November 2024, revealed a wide range of views influenced by age and financial perspectives. When asked how much the typical middle-class American has saved by age 65, 25.95% of respondents aged 21-34 believed retirees have less than $50,000 saved.
Similarly, 29.47% of those aged 35-44 and 25% of those aged 55-64 also selected the less-than-$50,000 range. In contrast, only 13.92% of younger respondents believed retirees had saved between $300,000 and $500,000, and a mere 3.16% thought retirees surpassed $1 million. The survey also highlighted significant disparities in actual 401(k) balances across age groups.
Among those aged 21 to 34, 19.6% have less than $25,000 saved, while 32.91% report balances between $50,001 and $100,000. Only 10.76% have saved $100,001 to $500,000, and none have surpassed $500,000. For those aged 35 to 44, savings improve slightly, with 17.24% having between $100,001 and $500,000, but 20.69% still have $25,001 to $50,000 saved.
In the 45 to 54 age group, 20.87% have $100,001 to $500,000 saved, but 16.54% still have less than $25,000.
Middle-class retirement savings insights
Among those aged 55 to 64, 17.19% have between $100,001 and $500,000, and only 5.79% have over $500,000 saved.
For those 65 and over, 24.68% have balances between $25,001 and $50,000, but 19.48% do not have a 401(k) at all. Nearly 8% claim to have over $500,000 in their 401(k). To bridge the gap between savings and retirement needs, experts recommend gradually increasing contributions, maximizing employer matches, monitoring progress, and seeking expert guidance.
Fidelity recommends saving at least 15% of your before-tax income yearly towards retirement, but if this feels daunting, start small and increase contributions annually by 1% until the target rate is reached. It’s important to note that not all retirement savings are tied to 401(k) accounts. Many retirees rely on alternative methods such as IRAs, pensions, annuities, or even real estate investments to fund their retirement years.
Additionally, those who are already retired may lean on Social Security benefits or personal savings outside of formal retirement plans. By focusing on consistent contributions and setting realistic goals, middle-class workers can work toward a more secure and well-rounded retirement. The data presented here offers a rough snapshot of where Americans stand with retirement savings, but it’s crucial to consider these additional financial options and your situation when assessing financial readiness.