What Do Americans Ages 65 to 74 Have in Retirement Savings? Fresh Fed Figures Offer a Look

Key Takeaways

• Households led by someone ages 65 to 74 that had a retirement account held a median balance of $257,000 in 2025.

• Using a 4% first-year withdrawal rate, that balance would generate roughly $10,000 before Social Security or pension income.

• How long savings last depends on spending, other income sources, and taxes—not only on the account balance.

Retirement is often described as the payoff for decades of work, but the outcome is far from equal.

Some Americans leave work with substantial savings accumulated over years of payroll contributions, or with a strong employer pension. Others have very little set aside and may rely mainly on Social Security.

According to Investopedia’s review of fresh Federal Reserve data, the retirement savings divide in the U.S. remains wide.

Why This Matters:

For Americans ages 65 to 74, the transition into retirement is a financial pivot point: paychecks stop and withdrawals begin. Comparing yourself with people in the same age range can help you gauge whether your savings are on track, although spending needs and other income are just as important.

How Many Americans Ages 65 to 74 Have Retirement Savings?

Investopedia’s analysis found that just under half of households headed by someone ages 65 to 74, or 49%, had a retirement account in 2025. That was down from 51% in 2022, but still consistent with the broader pattern of the past quarter century, when the share ranged from 43% to 52%.

Among age groups, households in this range were behind most others. In 2025, only households headed by people under 35 or over 75 were less likely to have a retirement account. The highest participation rate, 63%, appeared among households headed by people ages 45 to 64.

There are several possible reasons participation drops after age 65. Many people in this stage of life have left the labor force and are drawing down savings. Some may also have converted their balances into annuities.

Another factor is timing. Many older households spent much of their careers before 401(k)s and IRAs became common, and they are more likely than younger households to have traditional pensions.

Tip

The Federal Reserve counts only individual retirement accounts, or IRAs, and employer-sponsored plans such as 401(k)s, 403(b)s, and federal thrift savings plans from current or former jobs. Traditional pensions and Social Security are not included.

How Much Have Americans Ages 65 to 74 Saved for Retirement?

Among households ages 65 to 74 with retirement accounts, the median balance reached $257,000 in 2025. After adjusting for inflation, that was 17% higher than in 2022 and matched households age 75 and older for the highest median balance of any group.

Investopedia’s review of the Fed data points to two clear patterns: balances tend to rise with age, and they were higher in 2025 than in 2022.

Age helps explain the first pattern. Older households have generally had more years to contribute and more time for investments to compound.

Important

The median is used instead of the average because a small number of very wealthy households can pull the average upward.

The survey does not track the same households over time. Instead, the Fed surveys a new nationally representative sample every three years. That is one reason the median balance for households age 75 and older can move around from one survey to the next.

Even so, market performance likely boosted balances between 2022 and 2025. The 2022 survey took place during a market slump, and the S&P 500 gained about 78%, excluding dividends, from the end of 2022 through the end of 2025.

How to Make the Most of Retirement Savings

For retirees who have saved, the challenge changes from building wealth to making it last. Social Security provides a steady income stream, but it is not meant to cover everything, so many retirees use 401(k) or IRA withdrawals to fill the gap.

It can be difficult to decide how much to withdraw when no one knows how long retirement will last. Some people spend too cautiously and end up underspending, while others spend too quickly early on.

A good starting point is to total Social Security, any pension income, and other guaranteed income, then subtract that from expected yearly spending. The remaining amount is what your savings need to support.

Important factors include the following:

• Withdrawals from traditional 401(k)s and IRAs are usually taxable, and required minimum distributions begin at age 73 or later.

• Assets that remain invested may continue to grow and generate income, but they can also lose value.

• Health-care costs often rise with age and can be difficult to forecast.

• Travel and other major experiences are often easier to enjoy earlier in retirement, which can make those years more expensive.

• The cost of living tends to increase over time.

A common rule of thumb is to withdraw about 4% of savings in the first year of retirement and then increase that dollar amount each year with inflation. Morningstar’s research places the highest “safe” starting rate at 3.9% for a 30-year retirement. Based on the $257,000 median balance for households ages 65 to 74, that would equal about $10,000 in the first year.

Still, it is only a guideline. Retirement needs differ from household to household, and spending as well as other income can vary widely.

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