Average Retirement Savings by Age

Retirement planning isn’t just about choosing the right account or investment strategy—it’s about knowing where you stand compared to others. As of 2025, the average retirement savings by age shows a wide range, from minimal balances in early adulthood to six-figure nest eggs in the decades approaching retirement. Whether you’re in your 20s or nearing 70, understanding these benchmarks can help you set smarter goals and course-correct your financial strategy.

In this comprehensive guide, we’ll break down the average retirement savings by age group, explore what factors affect these numbers, and offer realistic tips to boost your savings regardless of where you are on the timeline.

Average Retirement Savings by Age

Why Retirement Savings Benchmarks Matter

When it comes to retirement planning, knowing how your savings compare to others in your age group can provide helpful perspective. Seeing average figures doesn’t just satisfy curiosity—it gives you a rough benchmark to understand whether you’re ahead of the curve, falling behind, or right on track. This comparison helps set clearer financial goals, make smarter decisions about saving and investing, and identify areas for improvement before it’s too late.

Of course, everyone’s financial situation is unique. Your income level, cost of living, family size, health, and long-term lifestyle expectations will all shape how much you need to retire comfortably. Still, having a general idea of what others have saved can help highlight gaps in your planning. For example, if the average 40-year-old has saved $110,000 for retirement and you’re sitting at $20,000, that may signal the need for more aggressive saving strategies. On the flip side, if you’ve saved more than the average in your bracket, it may affirm you’re on the right path—or even ahead of schedule.

Recent data from financial institutions like the Federal Reserve, Vanguard, and Fidelity reveals just how wide the gaps are between age groups. Disparities in retirement savings aren’t only about discipline—they’re also the result of real-world challenges. Rising student loan debt burdens young adults in their 20s and 30s, often delaying their ability to contribute meaningfully to retirement accounts. The rising cost of housing in urban areas means more income goes to rent or mortgage payments, leaving less room for 401(k) contributions or IRA deposits.

Inflation and market volatility also impact savings over time. For older generations, events like the 2008 financial crisis or the COVID-19 pandemic may have forced early withdrawals or paused retirement contributions. Job changes, layoffs, and career shifts can lead to inconsistent saving habits, particularly for those who don’t roll over old 401(k)s or who lack employer-sponsored plans during periods of self-employment.

Ultimately, understanding the average retirement savings by age is about context, not comparison. It’s not about measuring self-worth in dollars—it’s about using real data to plan smarter. If you find yourself behind the average, don’t panic—use the insight to course-correct and take back control of your financial future.

Average Retirement Savings by Age in 2025

Here’s a snapshot of where people typically stand with their retirement savings based on the most recent available data and trends:

Ages 20–29

Average retirement savings: $11,300

Median retirement savings: $4,500

Most individuals in their 20s are just getting started in the workforce, and many are still paying off student debt. But starting early—even with small contributions—has a powerful compounding effect over time. A 25-year-old who invests $200 per month with a 7 percent return could end up with over $500,000 by retirement.

Goal by 30: Aim to have at least one year’s salary saved by age 30.

Ages 30–39

Average retirement savings: $43,500

Median retirement savings: $18,880

This decade is when many start getting serious about retirement. Income typically increases, and with it, the ability to make higher contributions. However, expenses like mortgage payments, childcare, or car loans often compete with saving goals.

Goal by 40: Have 2–3 times your salary saved for retirement.

Ages 40–49

Average retirement savings: $112,300

Median retirement savings: $47,620

By the 40s, mid-career professionals may have more disposable income but often realize they’re behind. This decade is prime time to increase 401(k) contributions and explore catch-up strategies. Many people start working with a financial advisor during this period to ensure they’re aligned with long-term goals.

Goal by 50: Have 4–6 times your annual salary saved.

Ages 50–59

Average retirement savings: $178,200

Median retirement savings: $61,900

Retirement becomes more tangible in your 50s. Fortunately, the IRS allows catch-up contributions for individuals aged 50 and over. In 2025, those include an extra $7,500 in 401(k) plans and $1,000 for IRAs.

This is also the time to focus on reducing debt and aligning investments with risk tolerance as you approach the retirement window.

Goal by 60: 6–8 times your salary saved.

Ages 60–69

Average retirement savings: $219,300

Median retirement savings: $87,900

As retirement nears, your savings level should be as high as it’s ever been. Many in their 60s shift into preservation mode, minimizing market risk while drawing income from their assets. Others delay retirement to boost Social Security benefits and maximize their employer contributions.

Goal by retirement: 8–10 times your final salary or more, depending on desired lifestyle.

Why the Median Is More Telling Than the Average

Notice how the average is much higher than the median? That’s because averages are skewed by a small percentage of high-income earners or super-savers. The median shows the midpoint—meaning half of people have less, half have more—which is a better reflection of where most Americans stand.

For example, while the average 60-year-old may have over $200,000 saved, the typical worker might only have around $88,000—far below what’s needed for a comfortable retirement.

How Much Do You Really Need to Retire?

The general rule is to replace 70–80 percent of your pre-retirement income. If you earn $80,000 per year, aim to generate $56,000 to $64,000 annually in retirement.

The 4 percent rule suggests withdrawing 4 percent of your retirement portfolio each year. To safely withdraw $60,000 annually, you’d need $1.5 million saved. But this is a rough guideline and doesn’t factor in market volatility, inflation, taxes, or healthcare costs.

Using a retirement calculator tailored to your income, location, and expected retirement age gives you a much clearer target.

Factors That Influence Retirement Savings

Several variables shape how much people save:

• Income level: Higher earners can set aside more money earlier.

• Cost of living: Those in expensive cities often delay saving.

• Job benefits: Access to a 401(k), employer match, or pension accelerates savings.

• Financial literacy: People who understand compound interest tend to start earlier and contribute more consistently.

• Life events: Divorce, illness, or job loss can derail savings progress.

  
  

2025 Retirement Trends to Watch

In 2025, several trends are impacting retirement behavior:

1. Roth 401(k) popularity is rising. More workers are choosing tax-free growth over upfront deductions.

2. Gig workers are saving on their own. With freelancing on the rise, SEP IRAs and solo 401(k)s are growing in importance.

3. Automatic enrollment boosts participation. Many employers now automatically enroll workers in retirement plans—improving savings rates.

4. More workers plan to delay retirement. Due to longevity and economic uncertainty, many people expect to work until 67 or beyond.

Strategies to Boost Your Retirement Savings at Any Age

No matter where you are, here are ways to catch up or improve:

In your 20s and 30s:

• Contribute at least enough to get your employer match.

• Open a Roth IRA to benefit from tax-free growth.

• Avoid lifestyle inflation—save pay raises, don’t spend them.

In your 40s and 50s:

• Max out your 401(k) and IRA.

• Consider a Health Savings Account (HSA) for tax-free medical spending.

• Work with a financial planner to optimize your asset allocation.

In your 60s:

• Delay Social Security if possible—each year you wait after full retirement age increases your benefit.

• Downsize or reduce expenses to stretch your savings.

• Review your withdrawal strategy to minimize taxes.

  
  

How to Stay on Track: Tips for 2025 and Beyond

1. Automate your savings. Set recurring contributions so you save without thinking.

2. Review your plan annually. Adjust for life changes, market shifts, or career moves.

3. Avoid early withdrawals. Taking money out of your retirement accounts before age 59½ usually triggers taxes and penalties.

4. Stay invested. Don’t panic during market downturns—retirement is a long game.

5. Diversify. Balance stocks, bonds, and other assets to reduce risk and capture growth.

   
   

Final Thoughts: Are You Ahead or Behind?

There’s no shame in falling behind—only in staying there. Understanding the average retirement savings by age is a starting point. It shows you where you are and where you could be. Whether you’re saving thousands or just getting started, every contribution counts.

In 2025, Americans are more aware than ever that retirement security is largely self-driven. Social Security may provide a base, but your financial independence depends on proactive planning, smart investing, and consistent effort.

So ask yourself: Are you where you want to be? If not, now’s the perfect time to take action. Your future self will thank you.

Looking for guidance on how to align your financial plan with your ideal retirement location? Connect with a trusted advisor today and take the first step toward building a secure, personalized retirement strategy.