Average Savings By Age

When we talk about average savings, we’re referring to the typical amount people have set aside in savings accounts and retirement accounts that aren’t spent on monthly bills and purchases. These figures vary widely based on income, lifestyle, and financial responsibilities. Some people will have a lot more, and others will have less.

These numbers can mean different things depending on where you are in life:

• These averages can encourage young adults to start saving early and benefit from compound interest over time.
• Middle-aged savers might use them to check their progress and make necessary adjustments.
• Older adults might find these figures helpful for finalizing their retirement strategy.

When reviewing savings by age, there are two numbers to consider: average and median. The average savings by age represents how much people have if total savings are divided equally. This number can be affected by outliers at either end of the spectrum; someone who has a lot less – or someone who has a lot more – can skew the average. However, the median retirement savings by age shows what the middle person in a group has, which makes it less susceptible to being influenced by these outliers.

For example, let’s say there are three people. One has $0, one has $10,000 and one has $50,000. The average savings is $20,000 ($60,000/3). The median is $10,000 ($0, $10,000, $50,000).¹ In general, the average savings by age is usually higher than the median since some people are super-savers and push up the average.

Approach the following numbers with a grain of salt. They don’t account for personal variables like debt, medical bills, or unexpected expenses that could impact your ability to save.

Still, these averages can serve as a rough guideline for your savings goals. Regardless of age, it’s never too late to start or refine your savings plan.

At 25, you’re likely at the beginning stages of your career, making it the perfect time to start establishing good saving habits. While the exact amount you should save depends on your income and goals, putting aside at least 15% of your pre-tax income for retirement is a solid guideline.²

Additionally, building an emergency fund covering three to six months of expenses helps create financial security for yourself.³ With emergency savings, you can be ready for any unexpected expenses life might throw your way, like sudden car repairs, medical bills, or a lost job.

Remember, every little bit helps. Even if you can only set aside 5% of your pre-tax income per year for retirement, that’s still better than nothing. The goal at this age should be to simply start building your savings, whatever you can afford to set aside.

A research report tracked how much people have saved up in their workplace retirement plans, like a 401(k) plan. At this point, the average savings by age for people younger than 25 is $5,236 and the median is $1,948.⁴ In other words, most people at this age haven’t really started saving much yet, as they are still at the start of their careers. So even if you contribute just a little bit to your savings each paycheck, you’re on track with others around your age.

By age 30, your career and earnings have hopefully started to stabilize, offering more opportunities to set aside some funds for your savings.

Financial experts often suggest having the equivalent of your annual salary saved by the age of 30.⁵ If you’re earning $60,000 a year, ideally, you should have $60,000 saved up. This includes contributions to retirement accounts, emergency funds, and other savings accounts.

If this number seems daunting, don’t get too stressed. The key is understanding that it doesn’t have to happen all at once. Start small and set incremental savings goals. Break down your savings goal into achievable steps, like saving a set amount each month, or aiming to save 10% of your income in a designated emergency or retirement fund.

This age is also a critical time to double-check your financial habits, ensuring you’re not only saving but also investing wisely to grow your wealth.

Whether you invest by contributing to tax-advantaged accounts, exploring investment opportunities, or getting professional advice, taking action now can set you up for a financially secure future.

For people aged between 25-34, the average retirement savings is $30,017, and the median retirement savings is $11,357.⁴

Your 40s means entering your peak earning years, which can significantly impact your ability to save for retirement. By this age, aim to have three times your annual salary saved up.⁵ For instance, if you earn $75,000 a year, your savings target should be around $225,000.

Again, remember that this isn’t meant to be saved all at once. By saving incrementally, a savings goal of three times your income can be realistic and achievable.

Here are some tips to make this amount tangible for your financial situation:

• Set a monthly savings goal: Determine how much you need to save each month to stay on track. A savings goal calculator or spreadsheet can help you track your progress.
• Increase your contributions gradually: As your income increases, consider automatically increasing your savings percentage—aim for at least 15% of your gross income to go toward retirement and other long-term savings goals.
• Utilize tax-advantaged accounts: Max out contributions to retirement accounts like 401(k)s or IRAs, especially if your employer offers a match.

This period is also an opportunity to aggressively pay down high-interest debt and increase your retirement contributions, especially if you got off to a late start. Everyone accumulates debt at some point in their lives. Whether it’s caused by credit cards, student loans, or a mortgage, prioritize paying off debts as soon as possible so you’re not throwing money down the drain in interest.

For people aged between 35-44, the average retirement savings is $76,354, and the median retirement savings is $28,318.⁴

In your 50s, you’re entering the home stretch for retirement, and your savings should be ramping up to ensure you can enjoy your golden years in peace and financial stability.

Financial advisors recommend having six times your annual salary in savings.⁵ This decade is crucial for catching up on retirement contributions, reassessing your investment risk, and planning for healthcare costs.

The good news is that the IRS allows for catch-up contributions starting at age 50, which means you can contribute more to retirement accounts than younger workers. Here’s how you can maximize your savings:

• 401(k): The annual contribution limit for a 401(k) is $22,500 in 2025. But once you turn 50, you can contribute an additional $7,500, bringing your total to $30,000. This can make a huge difference in increasing your retirement nest egg.
• IRA: The contribution limit for individual retirement accounts (IRAs) is $6,500 in 2025, but with catch-up contributions, you can add another $1,000, bringing your total to $7,500. Be mindful of the income limits if you’re contributing to a Roth IRA, as they can impact eligibility.
  With the catch-up contribution allowances and growing earnings, now is the time to push your savings to the max. Contributing the full allowable amount to your retirement accounts every year, if possible, will make a big impact on your future financial security. The IRS increases the contribution limits over time, so take advantage of these opportunities while you can.

For people aged between 45-54, the average retirement savings is $142,069, and the median retirement savings is $48,301.⁴

The average retirement savings by age 65 is $232,710, and the median is $70,620.⁴

Remember, these numbers give us a snapshot of what people have in workplace retirement plans, like a 401(k), but they don’t tell the whole story. Retirees could have more money in IRAs, personal savings, a health savings account (HSA), and other financial accounts and assets that contribute to a retirement nest egg.

Maximize Retirement Plan Contributions: Aim to contribute the maximum allowable amount to your 401(k) or IRA each year. In 2025, you can contribute up to $22,500 to a 401(k), or $30,000 if you’re age 50 or older, which can help boost your savings.

Take Advantage of Catch-Up Contributions: If you’re over 50, you can take advantage of catch-up contributions, which allow you to save more in retirement accounts each year.

Automate Savings: Set up automatic contributions to your retirement accounts. This “pay yourself first” strategy helps ensure you’re consistently saving, even if it feels like a small amount.

Diversify Investments: Consider a well-diversified portfolio, balancing riskier investments (stocks) with more stable ones (bonds). If you’re unsure, a financial advisor can help tailor a strategy that works for you.

Cut Unnecessary Expenses: Review your spending habits and prioritize saving. Even small changes in your monthly budget can add up over time.

Consider Delaying Social Security: Waiting until after your full retirement age to claim Social Security benefits can increase your monthly payout, helping boost your income during retirement.

Your ideal savings target depends on factors like your retirement goals, expected lifestyle, and anticipated expenses. A general rule of thumb is to replace 70-80% of your pre-retirement income through savings and Social Security.⁷

Using this measure, if you were earning $100,000 a year before retiring, your retirement income should be between $70,000 to $80,000.

However, calculating your specific needs will provide a more accurate savings goal. Make a list of what you expect to pay per year after retiring. Consider housing, food, insurance, travel, entertainment, and all other expenses.

Example calculation

Let’s say you calculate you’ll need $80,000 a year to cover your retirement needs, and you expect to get $20,000 a year from Social Security and $20,000 from a work pension. That means you’ll need another $40,000 per year from your savings.

You could then multiply this amount by the number of years you think your retirement will last. If you expect retirement to last 20 years, you’d need roughly $800,000. Since you don’t know how long you’ll live, this takes some guesswork.

Saving money helps ensure financial independence, provides security against unexpected expenses, and enables you to achieve personal and financial goals. Saving early helps you take advantage of compound interest, potentially turning modest savings into large sums over time.

Compound interest is like moving a giant boulder. Progress is slow initially, but once you get moving, the pace really picks up. The more you save up, the more you’ll earn off interest and investing.

Ready to start building your nest egg? Here are some tips to increase your savings:

• Deposit your annual tax refunds straight into savings.
• Save inheritances and cash gifts given for birthdays or holidays.
• Take advantage of cash back credit cards.
• Prioritize paying off high-interest debt.
• Automate your savings so you put money aside every month.
• Create a budget to track spending and find more ways to save.
• Opt for interest-bearing and rewards checking accounts for everyday spending.
• Explore high-yield savings accounts to maximize your returns.
• Consider certificate of deposit accounts for short-term savings.

While average savings by age is a good benchmark to see how you’re progressing, your personal savings goals should be tailored to your unique financial situation.

Building a robust retirement fund offers peace of mind and security in your golden years. Likewise, maintaining an emergency fund and saving for short-term goals enables you to confidently navigate financial challenges.

Start today, and take control of your financial future by opening a high-yield savings account.