Here's how much Americans have saved up in their retirement accounts by age — are you ahead or way behind?
Here's how much Americans have saved up in their retirement accounts by age — are you ahead or way behind?
Almost half of Americans don’t have a dedicated retirement savings account, according to the Federal Reserve’s 2022 Survey of Consumer Finances. The survey, which includes the latest government data, reveals only 54.4% of American families reported having dedicated retirement accounts such as a 401(k) or IRA.
While it’s possible they may be saving for retirement outside of these accounts, few survey respondents reported having other investments. For instance, only 1.1% directly hold bonds and only 21% directly hold stocks.
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Many Americans relying solely on Social Security benefits to carry them through their golden years may be in for a rude awakening. The average benefit for a retired worker is $1,907 a month, according to the Social Security Administration, which works out to $22,884 per year. This isn’t far above the 2022 poverty threshold of $17,710 for a person over 65 in a two-person household, per Census Bureau data.
While there are several factors that determine how much you should be saving for retirement, age is an important one. So, how do you stack up against your peers?
Median savings vary by age
Of course, the Fed’s numbers are an aggregate of all ages. So, if you’re just starting out in the workforce, you may not yet have a retirement account and your savings are likely to build as you get older. You might be curious, then, how you stack up against other people in your age bracket.