Average Savings By Age: How Much Does the Average American Have in Savings?

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.

“Savings” is just money set aside in savings accounts and retirement accounts. How much people have saved can vary widely based on income, lifestyle, and financial responsibilities. Some people have more, while others have less.

Average vs. median savings by age

When reviewing typical savings by age, there are two numbers to consider:

• Average savings by age represents how much people have if total savings are divided equally. One person with a lot less or a lot more can skew the average.
• Median retirement savings by age shows what the middle person in a group has, making it less susceptible to being influenced by 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).²

The average savings for Americans is usually higher than the median since the few people with a lot of income push up the average.

What is the difference between savings and retirement savings?

• Savings is money set aside for short-term needs or emergencies. This could be sitting in a checking account or a high-yield savings account. It’s a financial safety net for emergencies or large purchases like buying a car or putting a down payment on a house.
• Retirement savings is money specifically set aside for when you’re no longer working for a paycheck. You typically hold these funds in tax-advantaged accounts like a 401(k) or IRA. Ideally, they grow over time with the help of compounding returns, employer matches, and the occasional market upswing.

It’s important to have both. Your regular savings keep you afloat. Your retirement savings will prepare you for life after work.

• Average retirement savings: $7,351³
• Median retirement savings: $2,816³

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.⁴

Additionally, building an emergency fund covering three to six months of expenses helps create financial security.⁵ 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. Even just saving a little bit each month can quickly add up!

• Average retirement savings: $37,557³
• Median retirement savings: $14,993³
• Average savings: $20,540⁶

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

Financial experts often suggest having the equivalent of two times your annual salary saved by the age of 35.⁷ If you’re earning $60,000 a year, ideally, you should have $120,000 saved, including retirement account contributions, emergency funds, and other savings accounts.

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.

• Average savings in workplace retirement plans: $91,281³
• Median savings in workplace retirement plans: $35,537³
• Average savings: $41,540⁶

Your 40s often mean entering your peak earning years, which can significantly impact your ability to save for retirement. By age 45, aim to have saved four times your annual salary.⁷ For instance, if you earn $75,000 a year, your savings target should be around $300,000.

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.

• Average savings in workplace retirement plans: $168,646³
• Median savings in workplace retirement plans: $60,763³
• Average savings: $71,130⁶

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 by age 50.⁷ During your 50s, you can catch up on retirement contributions, reassess your investment risk, and plan for healthcare costs.

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 $23,500 in 2025. But once you turn 50, you can contribute an additional $7,500, bringing your total to $31,000.⁸ This can make a huge difference in increasing your retirement nest egg.
• IRA: The contribution limit for individual retirement accounts (IRAs) is $7,000 in 2025, but with catch-up contributions, you can add another $1,000, bringing your total to $8,000.⁸ Be mindful of the income limits if you’re contributing to a Roth IRA, as they can impact eligibility.

• Average savings in workplace retirement plans: $244,750³
• Median savings in workplace retirement plans: $87,571³
• Average savings: $72,520⁶

As you approach retirement age, the countdown clock is getting louder, and your financial strategy should reflect that. For many people, this is the final push to shore up retirement savings before transitioning from earning a paycheck to living off what you’ve saved.

By age 60, financial experts suggest you should have saved eight times your annual salary.⁷ Easier said than done, of course, especially with rising healthcare costs, potential support for ageing parents or adult children, and the temptation to finally book that dream vacation. But this stage of life also comes with unique advantages for retirement savers.

Starting in 2025, if you have access to an employer-sponsored retirement plan like a 401(k), 403(b), or 457(b), your allowable catch-up contribution is $11,250 at age 60, 61, 62, and 63 instead of the normal $7,500.⁸

This decade is also a time to take retirement income planning seriously. Consider when you’ll take Social Security, how you’ll cover healthcare costs (including long-term care), and whether you’ve positioned your investments for both growth and stability.

The average retirement savings by age 65 is $272,588, with a median of $88,488.³

Meanwhile, the average savings in bank accounts at retirement age is $100,250.⁶ These numbers are 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.

Whether you’re playing catch-up or just getting started, there are practical steps you can take to boost your savings over time. Here are some strategies to help you build momentum and stay on track toward your financial goals.

• 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 $23,500 to a 401(k), $31,000 if you’re age 50 or older, or $34,750 if you’re age 60 to 63, which can help boost your savings.⁸
• 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.
• Take advantage of windfalls: Instead of spending unexpected windfalls like tax refunds, inheritances, or cash gifts, deposit them straight into savings.
• Diversify investments: Consider a well-diversified portfolio, balancing riskier investments (stocks) with more stable ones (bonds). Consulting 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.

While average savings by age is a good benchmark to see how you’re progressing, tailor your personal savings goals 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.