|
Average Retirement
|
Age of Household Head | Mean | Median |
|---|---|---|
| Less than 35 | $25,000 | $9,400 |
| 35-44 | $80,100 | $37,000 |
| 45-54 | $154,900 | $63,000 |
| 55-64 | $270,600 | $100,000 |
| 65-74 | $267,000 | $77,000 |
| 75 or more | $105,600 | $35,000 |
The retirement accounts in this sampling include all savings held specifically for retirement in individual retirement accounts or employer sponsored plans such as 401(k) or defined-benefit plans.
However, when discussing average retirement savings statistics, it is important to note that there are other ways to save for retirement besides using tax-favored retirement plans. Many people have savings in non-retirement assets such as investment portfolios, small businesses, home equity and other real estate that they intend to use for retirement.
The following table presents a more realistic view of retirement savings because it shows the net worth (assets minus liabilities) of households by age group.
Family Net Worth
Age of Household Head | Mean | Median |
|---|---|---|
| Less than 35 | $106,000 | $11,800 |
| 35-44 | $326,300 | $88,200 |
| 45-54 | $663,000 | $184,900 |
| 55-64 | $941,300 | $254,100 |
| 65-74 | $1,015,700 | $239,400 |
| 75 or more | $638,300 | $213,500 |
What the Retirement Statistics
Mean to You
By looking at the averages of retirement savings and net worth for your age category, you can get an idea of how your financial preparations for retirement compare to the average American household. However, both tables show that most Americans are woefully underprepared for retirement and that many don’t understand the importance of saving money.
To get a realistic idea of how much retirement savings you need at your age, use this retirement saving calculator. You will be able to easily experiment with a number of variables to see if you are on track to have the income in retirement that you want. You can also compare your projection to the average retirement income of Americans.
If you find that you are not saving enough money to live on in retirement as you would like, you may want to adopt a more frugal lifestyle or find sources of supplemental income. If the savings that you currently have are not producing a very good rate of return, you may want to learn to invest money.
The average retirement savings statistics show that most Americans have some work to do in order to be financially set for retirement. If you are in the same situation, take steps now to ensure your financial freedom in retirement.
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