Average Retirement Savings by Age: How Do You Compare?
Published Date: February 15th, 2025
Average Retirement Savings by Age: How Do You Compare?
Planning for retirement is a crucial aspect of financial well-being. Understanding how your savings compare to national averages can provide valuable insights and help you assess your preparedness for retirement. Below, we explore the average retirement savings by age and offer guidelines to help you stay on track.
Retirement Savings Benchmarks by Age
Retirement savings can vary widely based on factors such as income, employment history, and financial literacy. However, examining average savings by age can offer a general perspective:
| Age Group | Average Retirement Savings | Median Retirement Savings |
|---|---|---|
| 20s | $108,941 | $33,537 |
| 30s | $239,962 | $90,810 |
| 40s | $530,031 | $217,005 |
| 50s | $800,000 | $300,000 |
| 60s | $1,200,000 | $400,000 |
| 70s and above | $826,250 | $300,000 |
Source: Empower Personal Dashboard™
Recommended Savings Milestones
Financial experts often suggest specific savings targets to help ensure a comfortable retirement. While individual goals may vary, a common guideline is to save a multiple of your annual salary by certain ages:
- By age 30: 1x your annual salary
- By age 40: 3x your annual salary
- By age 50: 6x your annual salary
- By age 60: 8x your annual salary
- By age 67: 10x your annual salary
Source: Synchrony Bank
Strategies to Enhance Your Retirement Savings
If your current savings fall short of these benchmarks, consider implementing the following strategies:
- Start Early: The power of compound interest means that the earlier you begin saving, the more your money can grow over time.
- Contribute Regularly: Set up automatic contributions to your retirement accounts to ensure consistent savings.
- Take Advantage of Employer Matches: If your employer offers a matching contribution to your retirement plan, aim to contribute enough to maximize this benefit.
- Increase Contributions Over Time: As your income grows, consider increasing the percentage you contribute to your retirement savings.
- Manage Debt: Reducing high-interest debt can free up more resources to allocate toward retirement.
- Consult a Financial Advisor: A professional can provide personalized advice tailored to your financial situation and retirement goals.
Conclusion
Understanding the average retirement savings by age and adhering to recommended savings milestones can serve as a roadmap for your retirement planning. Regularly reviewing and adjusting your savings strategies can help ensure you are on track to achieve a comfortable and secure retirement.