Retirement Savings by Age: Where Do You Stand?

In the event you’re like the vast majority of folks, you in all probability have to step up your retirement financial savings efforts. The Federal Reserve’s 2019 Survey of Client Funds, launched in 2020, discovered that the median worth of Individuals’ retirement accounts was solely $65,000. And solely 50% of American households had retirement accounts in any respect in 2019.

Not surprisingly, retirement nest egg sizes differ by technology. As of late 2021, Child Boomer employees had the very best retirement financial savings at a median of $202,000, in contrast with Technology X ($107,000) and Millennials ($68,000), in keeping with the twenty first Annual Transamerica Retirement Survey.

As well as, the survey famous, the proportion of employees who’ve saved $250,000 or extra (across the common quantity within the Fed’s examine) will increase with age: 25% of Millennials, 32% of Technology X, and 45% of Child Boomers. In distinction, the proportion of employees who’ve saved lower than $25,000 decreases with age: 27% of Millennials, 20% of Technology X, and 16% of Child Boomers.

Let’s take a look at what folks in varied age teams have saved for retirement and the way it stacks as much as what the consultants advocate.

Key Takeaways

  • Not surprisingly, retirement nest egg sizes differ by technology.
  • Nevertheless, research present that most individuals have to step up their retirement financial savings efforts.
  • Goal to save lots of no less than 15% of your pre-tax earnings and ensure you contribute sufficient to your 401(ok) to get the total good thing about your employer match if one is obtainable.
  • It’s by no means too early in your profession to place a retirement plan collectively, nevertheless it’s by no means too late to begin, both.


In the event you’re in your 20s and simply beginning your profession, your paycheck in all probability displays that truth. You are additionally prone to be carrying a good quantity of pupil mortgage debt. The typical month-to-month pupil mortgage cost in 2019 was between $200 and $299, in keeping with the Report on the Financial Nicely-Being of U.S. Households.

On the brilliant facet, these of their 20s have round 40 years earlier than they retire, which is plenty of time to make up a shortfall. The only most essential factor to do is to contribute to your employer-sponsored retirement plans, akin to a 401(ok) plan or 403(b) plan. You may contribute as much as $20,500 in 2022 and $22,500 in 2023.

Funding administration agency Constancy recommends that you just put apart no less than 15% of your pre-tax earnings a yr for retirement. If you cannot save 15% of your wage, save as a lot as you’ll be able to, and no less than save sufficient to get the total good thing about your organization’s matching contribution if one is obtainable. Do not flip away free cash.

Nashville: How Do I Make investments for Retirement?


In the event you’re in your 30s, you have probably gotten out of these entry-level pay grades. However life could also be extra difficult now. You could be married, have kids, perhaps a house, and also you’re in all probability nonetheless paying off your pupil loans.

With every thing from the mortgage to soccer cleats to an sudden automotive restore taking a chunk out of your paycheck, saving for retirement could fall by the wayside.

Transamerica knowledge reveals thirtysomethings have a median of $68,000 saved. Relying in your age and annual wage, you could be okay. In line with Constancy, it is best to have in regards to the equal of your annual wage saved as a nest egg at age 30, twice your wage at age 35, and thrice your wage by the point you exit your 30s.

To achieve these targets, it’s a good suggestion to tighten up your loved ones finances the place you’ll be able to and attempt to improve the share of your wage that you just’re saving yearly.

In the event you have not began saving but, you’ll want to save lots of the next proportion of your annual earnings. For example, for those who do not begin saving till you might be 30, Constancy recommends you place apart 18% of your wage a yr, whereas somebody beginning at age 35 ought to strive for 23% a yr.

Placing apart almost 1 / 4 of your earnings for retirement is a tall order for anybody with month-to-month payments and debt, and this underscores the significance of saving early.

Lastly, do not be too conservative together with your investing decisions. You are still younger sufficient to climate large market downswings—even the sort that occurred within the wake of the COVID-19 pandemic—as a result of your portfolio has time to get well.


The share of the 5,277 employees polled within the twentieth Annual Transamerica Retirement Survey who reported having no retirement financial savings in any respect. That determine consists of 12% of Millennials, 9% of Technology X, and seven% of Child Boomers.


In the event you’re in your 40s, you are in all probability within the prime of your profession. You have paid your dues and now, one hopes, you have got a wage that displays that. With a bit of luck, you may come to the top of these pupil mortgage funds someday on this decade, liberating up more cash.

However the home is greater, the children are older and will need assistance shopping for a automotive or paying for college—and, for those who’re trustworthy, you could be blowing cash on issues you would do with out.

The estimated median whole family retirement financial savings was $93,000 amongst all employees in August 2021. Do not forget that Constancy recommends that you’ve thrice your annual wage saved by the point you attain 40. So, for those who’re making $55,000, it is best to have a stability of $165,000 already banked. At age 45, it is strongly recommended you have got 4 instances your annual wage saved and 6 instances that stage by the point you attain 50.

In case you are behind (and even for those who’re not), it is best to attempt to max out your 401(ok) contributions. In the event you do not have already got an Particular person Retirement Account (IRA), begin one and attempt to max that out as nicely. You may contribute as much as $6,000 for 2022 and $6,500 for 2023.

To achieve these targets, take into account placing any raises you get towards retirement financial savings. And for those who not have pupil mortgage funds, commit these sums to your nest egg as nicely.


In the event you’re in your 50s, you are nearing retirement age however nonetheless have time to save lots of. However you additionally could be paying your kids’s school tuition and serving to them with automotive funds, gasoline, and different bills. The home could also be getting older and want fixing up, and your medical payments are virtually actually rising.

The estimated median financial savings of fiftysomethings is about $107,000—far shy of the fascinating six to eight instances annual earnings that Constancy recommends.

In case you are 50 or older, you may make what’s referred to as a “catch-up contribution”— an additional $1,000 a yr to your IRA and an additional $6,500 a yr to your 401(ok) or 403(b) in 2022. The numbers keep the identical in 2023 for an IRA catch-up contribution. For 401(ok) accounts it will increase to $7,500. 

Apart from profiting from catch-up contributions, take into account downsizing by promoting your property and gathering any appreciated worth.

You probably have firm inventory choices or different property, do not forget to contemplate these as a part of your retirement stability, even when they do not sit in a retirement account. Think about assembly with a monetary planner, particularly one who makes a speciality of retirement, to get issues so as.


This may be the last decade once you start to reap the rewards of a long time of saving. By the point you attain 60, it is best to have eight instances your annual wage saved, in keeping with Constancy, whereas those that are 67 ought to have 10 instances your wage saved.

Sadly, Transamerica reviews the estimated median financial savings for sixtysomethings is $202,000. At this level, it’s more durable to save lots of sufficient to make up for any shortfall. In case you are behind in your financial savings, take a tough look at your property and see what might be monetized sooner or later to assist maintain you.

That is additionally the last decade you can begin receiving Social Safety advantages. Most seniors discover this to be a major supply of month-to-month earnings. For example, the typical month-to-month profit for a retired employee as of January 2023 was $1,779 monthly.

How A lot Does the Common 65-12 months-Previous Have Saved for Retirement?

The median family headed by an individual or folks aged 65 to 74 had financial savings of about $164,000 in retirement accounts, in keeping with the most recent Federal Reserve numbers, for 2019.

I Do not Have Entry to a 401(ok). How Can I Save for Retirement?

A self-employed particular person, a freelancer, or anybody else with earned earnings can open a person retirement account (IRA) and profit from its tax benefits. An IRA might be opened at most banks, brokerages, and different monetary establishments.

You will not get an employer match, however you’re going to get a tax break in your financial savings. A “conventional” IRA helps you to cut back your taxable earnings for the yr whereas depositing that earnings in your account. In the event you select a Roth IRA, you pay the earnings taxes owed on that quantity that yr however will not owe any tax on the quantity you withdraw later.

In any case, not like a salaried worker, you may have an enormous variety of decisions in your cash. You may put money into shares, bonds, exchange-traded funds (ETFs), or mutual funds.

I am Residing Paycheck to Paycheck. How Can I Save for Retirement?

The least painful method to put aside cash for retirement might be the normal 401(ok) or, for those who’re a freelancer or self-employed, a standard IRA. The cash you deposit in one of these account is “pre-tax.” In different phrases, you will not pay earnings tax on that cash within the yr you deposit it. That reduces your adjusted gross earnings for the yr, which means your tax invoice shrinks. It is a smaller hit in your take-home earnings than the choice, a Roth 401(ok) or IRA.

The Backside Line

The quantity wanted for retirement is completely different for everybody. However, there are benchmarks you’ll be able to attempt to hit at each decade of your life. It is by no means too early in your profession to place a plan collectively, nevertheless it’s by no means too late to begin, both.

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