Fed Data Shows Average Retirement Savings by Age: Under 35 at $48,400, 55–64 at $670,200

Quick Read

• Federal Reserve data shows average retirement savings of $48,400 for people under 35, climbing to $670,200 for those ages 55 to 64.

• These averages leave out the 35% of families without any retirement account, so they are higher than the true population-wide average.

• Fidelity suggests aiming for 1 times salary by 30, 3 times by 40, 6 times by 50, and 8 times by 60, which can be more useful than the Fed's averages.

The Federal Reserve's Survey of Consumer Finances is among the most detailed public sources on retirement account savings for American families across different stages of working life. Its age-based averages climb sharply over time, making them a useful reference point for checking your own progress. But before comparing your balance with these figures, it helps to know exactly which households are included.

Mean balances are reported at $48,400 for under 35, $182,400 for ages 35 to 44, $415,800 for ages 45 to 54, and $670,200 for ages 55 to 64.

The pattern reflects how retirement savings grow. Regular contributions, employer matching, and investment gains compound over time, so each decade tends to build on a larger base than the one before.

These Averages Cover Only Families With an Account

The numbers include only families that have an individual retirement account (IRA) or a defined contribution plan such as a 401(k) or 403(b). Families with no retirement account are excluded completely. Put differently, these are averages for savers only. If every household were counted, including those with zero savings, the figures would be lower.

The excluded group is substantial. The Fed's participation analysis is limited to families whose reference person is 64 or younger, a cutoff intended to capture households that generally have not yet retired. In that group, retirement plan participation stood at 65.1%, up slightly from 64.4% in the previous survey. That broader measure also includes traditional pensions.

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One investing mistake can create major risks for retirement. Many people make the same serious errors: being overly cautious, placing huge bets on what seems like a sure thing, or paying too much in fees. Any of those missteps can put hard-earned savings at risk.

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Participation is highest among families nearing retirement, at roughly 70% for ages 45 to 64. Younger households under 35 have also seen a notable increase in participation over the past 15 years.

Why the Typical Saver Has Less Than the Average

A mean adds every balance together and divides by the number of savers, so a few very large accounts can push it well above what most people actually hold. Imagine a room full of workers with modest 401(k) balances. If one person with a seven-figure rollover IRA walks in, the average jumps, even though the middle saver has not changed at all. That middle value is the median, and for most account holders it is well below the mean.

Table A does not show medians. Still, the Fed says in the text that median values increased for all age groups between the two surveys. That helps explain the youngest group's results below.

Every Age Group Except the Youngest Made Progress

The three older groups all posted higher averages, reflecting years of contributions, employer money, and rising account values. The under-35 group was the only one that came in below its earlier level.

A decline in the mean while the median rises usually suggests that new savers are entering the group rather than existing savers losing ground. The Fed reports that lower-income families make up a growing share of retirement plan participants under 35. Smaller new accounts can pull down the average even as the typical young saver improves. Viewed that way, the younger group's lower average may point to broader access to retirement plans.

A Simple Self-Check for Your Age Bracket

Because these averages are skewed upward, being below your age group's mean is not a very strong warning sign by itself. Your own salary multiple is a better indicator of whether you are on track.

What to Do About Your Position

If you do not have an account, you are outside these averages altogether, so opening one is the first step. The 401(k) limit for workers under 50 is $24,500, and the IRA limit is $7,500.

If you are 50 or older and behind your target multiple, catch-up contributions increase the 401(k) ceiling to $32,500. Workers ages 60 to 63 can contribute up to $35,750.

It is also important to compare your savings goal with Social Security. The average retired worker's benefit is estimated at $2,170 a month after the projected cost-of-living adjustment, and your savings must cover whatever that benefit does not.

Help Avoid These 13 Retirement Mistakes Before They Derail Your Future

One investing mistake can create major risks for retirement. Many people make the same serious errors: being overly cautious, placing huge bets on what seems like a sure thing, or paying too much in fees. Any of those missteps can put hard-earned savings at risk.

You can also learn about mistakes even experienced investors make, and how to avoid them before it is too late, with this new guide: 13 Retirement Mistakes and How to Avoid Them from Fisher Investments. (sponsor)