Average retirement savings by age

Whether you’ve just started thinking about saving for retirement, are creating a retirement savings plan, or have been putting money aside for years, you probably have a lot of questions: “How much savings will I need to retire?” “How much money should I have saved by now?” And, if you’re like most people, “Have I saved more or less than others my age?”

They're important questions – and the answers can help you to monitor your progress and keep your savings plan on track. Here's what you should know about:

• Average, median and recommended retirement savings by age and "catch-up tips"

• General retirement savings tips and guidelines

• Where to get retirement planning advice

Key Facts on Retirement Savings

• As of 2022, the median household retirement savings for Americans under age 35 is $18,000.²

• As of 2022, the median household retirement savings for Americans ages 65-74 is $200,000.²

• In 2022, the average (median) retirement savings for American households was $87,000.⁶

• The recommended retirement savings at age 40 is 3X annual income.²

• As of 2024, 25% of American non-retirees have no retirement savings.⁶

• Starting at age 50, catch-up provisions in the tax code allow you to increase your annual contributions to several types of retirement accounts.

Retirement savings benchmarks by age

Before you get too caught up in comparisons and worrying if you're saving enough (or too much), it's important to remember that if you ask a dozen professionals for their retirement planning and savings recommendations, you’ll probably get a dozen answers. So, think of the information below as guidelines rather than “rules.” And remember that individual retirement goals will influence the amount of money you should have saved by any given age. For instance, those who want to retire early and/or maintain an upscale lifestyle in retirement may need more savings; those who plan to retire at 67 or beyond with a more modest lifestyle may need less.

With those caveats, here are some age-specific benchmarks, including recommended retirement savings, average retirement savings, and median retirement savings.¹ The figures for average and median savings — including funds in IRAs, Keogh plans, and employer-sponsored plans such as 401(k)s - were taken from the Federal Reserve's Survey of Consumer Finances.²

When reviewing them, it’s important to note that the average household retirement savings figures are skewed higher by upper-income Americans who have accumulated a significantly larger amount of funds than most. Median household retirement savings may actually provide a more accurate overview of where most “typical” households stand.

Under age 35²

Looking at the figures above, you can see that many — if not most - people under 35 are behind the curve when it comes to saving for retirement. With an average salary of 25 to 34 years old at $52,936⁵, this may be due to expenses — including student loan debt — that outstrip income from low- or mid-level jobs. It may also be due to a lack of experience with budgeting and financial planning.

Saving 1x your income by age 30 is recommended to harness the power of compound interest and prepare for a comfortable retirement. Start saving early, even small amounts, and increase your savings rate gradually to achieve your retirement goals.

Catch-up tip: As they start their careers, families, and adult lives, people in this age group should consider creating a budget that includes at least some savings – then do everything in their power to stick to it. The easiest strategy? Cut discretionary spending on things like dining out or entertainment. The sooner the saving begins, the easier it will be to get on track.

Age 35 to 44²

Many people in this age group are in their peak spending years – when expenses may include supporting a family, starting a business or buying a home – but have yet to hit their peak earning years. As the figures here show, the average savings number is relatively low compared to the median earnings level of $63,596⁵, and many haven’t kept pace with recommended savings benchmarks. Fortunately, there’s still plenty of time to catch up. But what are some of the best ways to do it?

Catch-up tips: First, reduce discretionary spending as much as possible and dedicate the “extra” cash to retirement accounts. Next, if available, make sure to consider participating in an employer-sponsored retirement plan such as a 401(k). You’ll likely enjoy some tax benefits, but you may also get matching contributions from your employer. If you have any leftover funds, consider opening a traditional Individual Retirement Account (IRA) or a Roth IRA and/or purchasing cash value life insurance, which some offer tax-advantaged cash value.

Age 45 to 54²

Most retirement professionals would say that by the time someone has reached this age group, they should be well on their way toward achieving their savings goal. In fact, with a median annual income of $64,428⁵, many recommended that at age 50, people should have 6X their annual salary in their retirement accounts. But despite that advice, only 58% of households headed by someone in this age group have any retirement savings.²

Catch-up tips: Fortunately, even at age 50, there is still time to build a sizable retirement fund. Many people will be in their peak earning years and able to put aside more funds than they might have been able to in prior years. Plus, once you reach age 50, catch-up provisions in the tax code allow you to increase your annual contributions to several types of retirement accounts, including 401(k)s, traditional IRAs, and Roth IRAs – so you can build your retirement fund even faster.

Age 55 to 64²

Ideally, everyone in this age group would have saved the recommended amount – 8X annual salary by age 60 – or, at the very least, have made significant progress towards that goal. Unfortunately, according to the Federal Reserve survey2, that's not the case. Median income for this age group of $63,336⁵ may also be a contributing factor.

Catch-up tips: Those at the lower end of this age range who are lagging the savings recommendations still have an opportunity to reduce discretionary spending, max out retirement plan contributions, and take advantage of catch-up contributions to make up for lost time. Those at the higher end of this age range face a more challenging scenario and may want to consult a financial professional for advice.

Age 65 to 74²

This cohort includes many people who are verging on or already in retirement. As you can see, a large percentage remains far below the recommended savings goal of 10X annual salary at age 67. With a median annual wage of $54,184^5, whether or not a shortfall will present serious challenges to any one individual will depend on their specific circumstances. But it is safe to say that almost everyone would do better with more savings than less. Hopefully, you're not at this point and can start saving sooner rather than later. If you need help getting started, consider speaking to a financial professional.

General retirement savings tips and guidelines

No matter what your age or how much you’ve saved to date, it’s a good idea to keep these basic savings tips and guidelines top-of-mind, even if some may seem like “no brainers”:

1. Don’t underestimate how much you’ll need

Many tend to overestimate how much of their retirement expenses will be covered by Social Security benefits or pensions. As a result, underestimate how much they’ll need to save.

2. Set clear retirement savings goals

Take the time to estimate how much money you'll have to save in order to retire at the age you want – and in the lifestyle you want.

3. Start saving sooner rather than later

Begin saving for retirement as soon as possible. You'll have more time to build savings while taking greater advantage of compounding interest and/or investment gains over time.

4. Consider tax-advantaged retirement accounts

Open an individual retirement account and/or an employer-sponsored 401(k). Also, consider life insurance products that offer a cash value component and other savings vehicles that may help provide tax advantages, especially if you max out on other retirement account contributions.

5. Make consistent contributions

Have a savings plan and stick to it. Prioritize regular contributions to your retirement account, above any other discretionary spending.

6. Review your progress regularly

Review your retirement plan at least twice a year, adjusting contributions and investments as needed to stay on track.

7. Minimize outstanding debt

Nothing can derail a retirement plan as quickly as high-interest debt – especially from credit cards. Try not to carry more debt than you can handle and aim to retire debt-free if possible.

Guardian can help you get and stay on track

The information above can be a source of general help for estimating savings goals and developing a savings plan. However, your situation is unique, and there may be financial issues and questions that you need help with. For specific legal or tax advice, you should always consult with an appropriate professional; for help with general financial planning, consider talking with a financial professional who has retirement planning experience.

If you don’t currently have a financial professional, Guardian can help. A Guardian Financial Professional will listen to your needs, help define your goals, and work with you to better understand the retirement savings process and make the appropriate decisions. Here’s how to find someone near you: