What is the average retirement savings

People with higher incomes are more likely to have retirement savings and their average retirement savings are higher, too. Meanwhile people with the lowest incomes have no savings and plenty of debt. It may be counter-intuitive but those near the top can still have big retirement savings gaps. Think of a high-earning family with an expensive mortgage and kids in private school. Think lower-income folks can simply work longer and retire later to make up for their lack of savings?

Not so fast. Experts generally think of retirement savings as an end goal with a series of mileposts along the way. By the time you retire, it can be a good idea to have between nine and 11 times your salary in retirement savings.

Talking to an expert can help you set and execute a retirement plan. There are two very good reasons. After all, age is just one factor in how much you should save for retirement — and not everyone who is the same age will retire at the same time. But retirement savings balances do tend to increase with age, as they should — the closer you are to retirement, the more you should have stashed away.

All data is from the Survey of Consumer Finances, unless otherwise noted. In , only about half of families owned any kind of retirement account. This age range encompasses the oldest millennials and the youngest of Generation X. These are strong earning years alongside peak spending years. Particularly for those who have kids, dollars may be stretched around paying for child care, saving for college and saving for retirement.

These can be peak earning years, especially for men, who see earnings growth until age 55, according to compensation research firm PayScale. About The bulk of these households include someone who is in retirement, or at least of retirement age. As a result, many are at the stage when they are probably spending, rather than accumulating, savings.

See: My grandson says my financial adviser is steering me wrong and double-charging me. You might want to start rebalancing your portfolio to reduce potential risks and maximize your long-term savings. The suggested savings guidelines say you need about ten times your annual salary in savings as you reach your full retirement age.

If you're not on track right now, don't panic. The most important thing is to be aware and begin to focus on what you can control. You can start taking actions to help impact your financial situation positively — and perhaps even beat the average retirement savings by age in the decades to come. You have clicked a link to access information on an external website, so you will be leaving westernsouthern. Our Family of Companies. Meet Our Family of Companies. Search for Search. Our site uses cookies to improve your visitor experience.

By browsing our website, you agree to the use of cookies and agree to our privacy policy. Home Learn Financial Education. It's natural to want to know how your retirement savings stack up. Here's what the data shows at every age. June 3, Retirement Planning. Was this article helpful? Next Steps. Explore retirement planning options. Calculate how much you need to retire. Learn how to plan for retirement. Related Articles. Send Us an Email.