A lot of people assume they're behind on retirement savings, and unfortunately the data suggests they're probably right.
The median American household has $87,000 saved for retirement, according to Motley Fool Money research. But the median doesn't tell you much unless you know where it falls in the trajectory your savings are supposed to follow. The age breakdown does.
Here's what the numbers from our research actually show.
Under 35: $18,880
Median retirement savings for Americans under 35 sit at $18,880. The mean, which is heavily skewed by high earners, is $49,127, but the median is the number worth focusing on.
That gap matters because only 39% of Americans aged 18 to 29 have any retirement savings at all, and just 23% feel on track. But the most important thing at this stage is whether you've started.
If you're contributing enough to get your employer's full 401(k) match, you're ahead of most people your age. That match is the closest thing to free money your compensation package contains.
35 to 44: $45,000
This is where the spread between the prepared and the unprepared starts to widen fast. Median savings for this age group sit at $45,000. That's down from $69,552 in 2019, which likely reflects how pandemic-era economic problems impacted the typical American's household finances.
Compounding interest starts doing real work in this decade. A dollar invested at 35 years old has 30 years to grow before a typical retirement age. A dollar invested at 44 only has 21 years. That nine-year difference is worth more than most people realize until they're past it.
45 to 54: $115,000
Median savings more than double between the 35-to-44 cohort and this one, which tracks with higher incomes and more years of compounding. The mean jumps to $313,220, again reflecting how much high earners are pulling up the top end.
Only 42% of people in the 45-to-59 age range feel on track for retirement. That's a slight majority who don't at an age when catching up requires intentional action.
If you're in this cohort and feel behind, the math on catching up is still workable. Contribution limits for 401(k)s allow an extra $7,500 per year in catch-up contributions starting at age 50. The right brokerage account makes it easier to take advantage of catch-up contributions. Here are some of our favorites.
55 to 64: $185,000
The final full working decade before most people retire. Median savings reach $185,000, with a mean of $537,563 that reflects significant polarization. The top earners are very far ahead. A lot of people aren't.
This is the window where Social Security decisions start becoming real. About 23% of Americans retire between 62 and 64 and Medicare doesn't kick in until 65. Retiring before 65 without coverage is an expensive choice that a lot of people make without fully pricing it in.
65 to 74: $200,000
Median savings peak at $200,000 for this age group. That's the number most often associated with "retirement savings" in the public imagination. The mean is $609,229.
Whether $200,000 is enough depends entirely on your lifestyle, health, and how long you live. It probably isn't, for most people. This no-cost quiz from our partner, SmartAsset, makes it easier to find a fiduciary financial advisor.
75 and older: $130,000
Median savings actually drop here to $130,000, which is what you'd expect as this cohort is drawing down their savings.
The mean is $462,411. The divergence between mean and median is widest in this age group, because the households that saved well in their 40s and 50s are still holding significant assets, while households that entered retirement underprepared are feeling that most acutely now.
The honest read on these numbers
The benchmarks here are medians, not targets. They tell you where the average American actually is, not where financial planners say you need to be.
The 4% withdrawal rule -- a common framework for estimating retirement income from a portfolio -- suggests that $200,000 in savings would generate about $8,000 per year in withdrawals. Combined with Social Security, that may be enough. Or it may not be, depending on your expenses and health costs.
What the data makes clear is that the gap between how prepared most Americans feel and how prepared they actually are is real. If these benchmarks make you uncomfortable, that's probably useful. The age where it's too late to do anything about it is further away than it feels.
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