Average Retirement Savings Statistics to Know in 2023
Did you know that the median age at which Baby Boomers started to save for retirement was 35? The average retirement savings statistics reveal that as time goes by, every new generation starts saving earlier and earlier in their lives, bringing the median age at which Generation Z Americans begin saving to 19.
However, considering that they are just beginning to save for retirement and have yet to buy a house, send their kids to college, etc., their average savings are minuscule compared to the retirement nest eggs Boomers have already built. Check out the statistics below to find more details on the average savings for retirement for the different demographics in America, including age, gender, income ranges, location, and more.
Top 10 Average Retirement Savings Statistics and Facts
Americans have an average of $141,542 in retirement savings.
The average 401(k) account balance in the USA is $103,800 as of the second quarter of 2022.
The average IRA account balance in the USA is $110,800.
Americans between 55 and 64 have an average of $256,244 in retirement savings.
The average 401(k) balance of American Baby Boomer savers is $207,900.
The average retirement savings rate of Gen Zers is 10%.
Americans with yearly incomes lower than $15,000 have a median of $3,341 in retirement savings.
Americans with annual earnings between $100,000 and $149,999 have an average of $219,651 in retirement savings.
Savers from Connecticut have an average of $545,754 in savings, which is the highest average in the country.
A 16% portion of the US population has no retirement savings.
General Retirement Savings Statistics
Americans have an average of $141,542 in retirement savings.
The median of their retirement savings, on the other hand, is significantly lower at $35,345. The average and median amounts of retirement savings vary quite significantly among Americans from different demographics. However, the trends show that older savers with longer tenures have notably higher savings than their younger counterparts.
(Vanguard)
The average 401(k) account balance in the USA is $103,800 as of the second quarter of 2022.
The latest data on the average retirement savings further reveals that the average American allocates 13.9% of their income to their 401(k) account. Additionally, the average 401(k) savings of US men are considerably higher than those belonging to US women. Namely, men have an average balance of $124,900 in their 401(k) accounts, while women have $84,000.
(Fidelity)
The average IRA account balance in the USA is $110,800.
As of Q2 of 2022, there are 12.8 million IRA accounts, 414,200 of which belong to Gen Z investors. Additionally, American retirement savings statistics also reveal that 3,1 million IRA accounts are held by Millennials, 1.4 million of which have female Millennial holders. Compared to the stats from Q2 of 2021, the number of total IRA accounts has increased by 10.6%, the number of Gen Z investors has increased by 87%, and the number of Millennial and female Millennial investors has increased by 24%. Moreover, the most recent data indicates a 4% increase in accounts with a contribution, lifting their number from 1.8 million in 2021 to 1.9 million in 2022.
(Fidelity)
Americans with a tenure of up to one year have an average of $16,047 in retirement savings.
The average US retirement savings by tenure statistics confirm that longer tenure means more money saved up for retirement. Correspondingly, Americans with a tenure of two to three years have an average of $42,964, and those with a four to six years long tenure have a $74,143 average. Furthermore, the average savings for retirement of Americans with a tenure between seven and nine years is $119,673, and finally, people with long tenures of more than ten years have an average of $303,138 saved up for retirement.
(Vanguard)
The percentage of the population with no retirement savings in the USA is 16%.
A recent survey revealed that the largest percentage of Americans, or 27%, have up to $50,000 in retirement savings. Only 11% have savings of between $50,000 and $99,000, while a significantly larger portion of 21% have between $100,000 and $249,000 saved up for retirement. A considerable share of 15% of Americans have retirement savings of between $250,000 and $399,000, while only 7% have a nest egg of between $400,000 and $499,000. Finally, the smallest sample of Americans, just 2%, have retirement savings higher than $500,000.
(Anytime Estimate)
Average Retirement Savings by Age
The average savings for retirement of Americans under 25 is $6,264.
Naturally, Americans who had the shortest time to save up have the lowest retirement savings amounts, though the median retirement balance of people under 25 is only $1,786. There is a huge difference between them and the very next age group of Americans between 25 and 34, who have a median balance of $14,068 and an average balance of $37,211.
(Vanguard)
Americans aged between 35 and 44 have a median of $36,117 in retirement savings.
The average retirement savings statistics by age further reveal that the average amount of retirement savings for the above age group is $97,020. Furthermore, Americans that are only one decade older than them have almost double the amount. On average, people between 45 and 54 have a retirement savings balance of $179,200, while their median balance is $61,530.
(Vanguard)
Americans between 55 and 64 have an average of $256,244 in retirement savings.
On the other hand, Americans over the age of 65 had the most time to build up a retirement nest egg, so it is not surprising that their average is the highest at $279,997. However, the median retirement savings by age statistics show that Americans from the 55 to 64 age bracket have the highest median of $89,716 in retirement savings. The median for Americans over 65 is slightly lower at $87,725.
(Vanguard)
The average 401(k) balance of American Baby Boomer savers is $207,900.
The oldest generation of Americans easily has the highest average savings, followed by Gen Xers, who have an average 401(k) balance of 133,900. Furthermore, the average 401(k) savings of Millennials is $38,800, and Generation Z Americans only have an average of $4,900 in 401(k) savings.
(Fidelity)
The average retirement savings rate of Gen Zers is 10%.
In addition to having less time to save, younger generations are at such points in their lives where spending takes priority over saving, which is why their retirement savings are low. So much is indicated from the retirement savings rate data that shows that Gen Z Americans allocate the lowest percentage of their income to retirement savings, while Millennials have the second-lowest rate at 12.8%. Older generations can afford to save more, so Gen Xers distribute 14.7% of their earnings to retirement savings, while Baby Boomers put 16.6% of their income into their 401(k) account, on average.
(Fidelity)
Average Retirement Savings by Income
Americans with yearly incomes lower than $15,000 have a median of $3,341 in retirement savings.
While it is natural for people from the lowest yearly income bracket to have lower amounts of savings, the average savings for retirement of Americans from this group is higher than those with earnings between $15,000 and $29,999. Namely, the below $15,000 income group has an average of $26,759, while the $15,000 to $29,999 has $17,101 in retirement savings, on average. The median savings of the latter group are slightly higher, though, at $4,678.
(Vanguard)
The median retirement savings of Americans with annual incomes between $30,000 and $49,999 is $10,665.
The latest data on retirement savings further reveals that the average balance of the people in the above group is $31,546. Moreover, Americans with yearly earnings between $50,000 and $74,999 have an average of $76,851 and a median of $32,842 in retirement savings. Finally, the average balance of Americans from the $75,000 to $99,999 annual income bracket is $133,701, while their median is $65,201 in retirement savings.
(Vanguard)
Americans with annual earnings between $100,000 and $149,999 have an average of $219,651 in retirement savings.
Moreover, the average retirement savings for high-income earners statistics show that Americans with more than $150,000 of yearly income have an average balance of $397,882 in their retirement savings accounts. The median balances, however, are significantly lower even for high-earning Americans, as people from the $100,000 to $149,999 bracket have a median of $116,223, while those who earn more than $150,000 per year have a median of $225,478 in their retirement savings accounts.
(Vanguard)
Average Retirement Savings by State
Savers from Connecticut have an average of $545,754 in savings, which is the highest average in the country.
The by-state statistics on savers reveal that East Coasters generally put more money in their retirement accounts than West Coasters. As a result, besides Connecticut, four out of the top five states, NJ with $514,245, NH with $512,781, and Vermont with $494,569, are from the East Coast of America. The sole representative of the West Coast in the top five is Alaska, with $503,822.
(Personal Capital)
Savers from Utah, with $315,160, have the lowest average retirement savings in the US.
The other participants in the bottom five list of states with the lowest average retirement balances include ND with $319,609, DC with $347,582, OK with $361,366, and MS with, $347,884. Please note that there are many factors to be considered when looking at retirement savings rankings. For example, Alaska is the state with the lowest tax burden in the US, allowing savers to tuck more money away for retirement.
(Personal Capital)
FAQs on Average Retirement Savings Statistics
How much does the average 65-year-old have saved for retirement?
How much does the top 1% have in retirement savings?
How far does $1 million go in retirement?
At what age can you retire with $2 million?
How much does the average person save in their 401k?
The Summary
Older Americans, who have worked longer, had longer tenures, and received higher salaries have the biggest retirement savings, with a few exceptions. The median amount of retirement savings for Americans between 55 and 64 is slightly higher than the median of Americans older than 65, likely because the latter are already retired and started to spend their savings.
Additionally, Americans with yearly earnings under $15,000 somehow have higher average retirement savings than those with annual incomes between $15,000 and $30,000. In this case, the data is likely skewed because of a low number of participants since a very small percentage of low-income Americans are saving for retirement.
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