Federal Reserve Data Show Many People in Their 30s Still Lack Retirement Savings—and the Trend Is Worsening

Key Takeaways

• Almost half of households headed by a person in their 30s do not have a retirement savings account.

• It is the only age group whose share of households with retirement accounts declined between 2022 and 2025.

• For 30-somethings who do have an account, the median balance increased to $44,000 from about $36,000.

Households in their 30s are less likely to have retirement accounts than they were three years ago, and the divide between savers and non-savers is growing.

In 2025, 46% of households headed by someone in their 30s had no retirement account, up from 40% in 2022, according to an Investopedia analysis of the Federal Reserve’s Survey of Consumer Finances. The Fed released the survey last month. In every other age group, the share increased. When traditional pensions are included, 39% of these households have no retirement coverage of any kind, compared with 34% three years earlier.

The typical household in this age range has about $2,100 in retirement accounts, down from roughly $6,600 in 2022. Among 30-something households that do have an account, the median balance climbed to $44,000 from about $36,000. All figures are adjusted to 2025 dollars.

The Financial Pressures Americans in Their 30s Are Facing

In 2022, households in their 30s were about as likely as those in their 40s and 50s to have retirement accounts, with roughly 6 in 10 in each group. Now, 30-something households trail both groups by more than 9 percentage points.

The data suggest that households in their 30s now resemble those in their 20s more than people in their 40s. Younger workers have traditionally been less likely to have accounts because they are earlier in their careers and earn less. In 2022, households in their 30s outpaced those in their 20s in retirement-account ownership by 17 percentage points. That lead has since been cut by more than half, according to Investopedia’s analysis.

Debt is making retirement saving harder for 58% of millennial workers, defined as ages 30 to 45, according to a Transamerica Center for Retirement Studies survey released recently. One in five have taken an early or hardship withdrawal from a 401(k) or IRA.

Millennials are often “stretched in their ‘sandwich years,’” balancing work, children, and aging parents, said Catherine Collinson, CEO of TCRS.

The decline reaches beyond retirement accounts. Median net worth for households in their 30s fell 23% from 2022 to 2025, to about $84,000, the steepest drop among all age groups. About 53% owned a home in 2025, down from 55% in 2022. Those who do not own homes are falling further behind: their median net worth has dropped nearly a third since 2022, to $9,500.

Why Starting Early Matters So Much

Time remains the main advantage for people in their 30s, even though older workers often earn more and carry less student debt and other obligations. For families under pressure, simply telling them to save more is not enough.

“With so many competing priorities, it may be difficult to find time for retirement planning,” Collinson said. Still, she added, “Small steps taken today can make a meaningful difference in the long run.”

A 30-year-old who saves $5,000 a year and earns a 7% return could reach age 65 with about $745,000. Delaying until age 40 still allows compounding to work, but the outcome is far smaller. As the chart below shows, someone who starts at 40 ends up with less than half the savings at 65 of someone who begins just 10 years earlier.

“Even if it’s a small amount,” said David Tenerelli, a financial planner at Values Added Financial, “getting started and building momentum for ongoing, consistent retirement account contributions is what’s important.”

For people starting from zero, he recommends contributing to a 401(k) at least enough to receive the full employer match, which he described as “free money” that would otherwise be left behind. Anyone carrying debt with an interest rate of about 7% or higher should probably pay that down first, he said.

Those without access to a workplace plan can use a Roth IRA. “Contributions grow tax-free, and contributed amounts can be withdrawn tax-free and penalty-free at any time,” he said. That flexibility may help reassure savers who are reluctant to lock up money they might need later.

“The best day to start contributing to retirement accounts is yesterday, and the second-best day is today,” he said.