Written by Dayana Yochim
Published Jun 30 | 12 minute read
Key Takeaways
When it comes to big financial goals like retirement, it’s natural to wonder, “Am I on track?”
One of the easiest ways to gauge your progress is to compare your savings to national benchmarks. But there’s a catch: which benchmark you use matters.
If you’ve ever seen headlines about the average retirement savings and felt behind, you’re not alone. The average can paint a misleading picture. That’s why many experts look instead at the median retirement savings by age, which offers a more realistic snapshot of what people have saved.
Here’s how median savings compare across age groups, what those numbers actually mean and how to use them to inform your own retirement plan.
Let’s start with a quick reality check.
The average (or mean) is calculated by adding up all savings balances and dividing by the number of people. The problem? A small number of very high balances can skew the result upward.
According to the Federal Reserve, the average U.S. household has more than $330,000 in retirement savings.
The median, on the other hand, represents the midpoint:
The median retirement savings per household in the U.S. is $87,000. Translation: Half of households have more than that amount saved for the future and half of households have less than that amount.
So if you’re comparing your savings to those of others, median is usually the better place to start.
READ MORE: How Much You Should Save for Retirement at Every Age
Before diving into the numbers, it helps to understand what’s included in a savings tally.
Most retirement savings data focuses on tax-advantaged accounts, such as:
Retirement plans for self-employed business owners—like solo 401(k)s as well as SEP and SIMPLE IRAs—are also likely to be included.
But some things are often excluded or inconsistently counted, including:
READ MORE: What is an IRA and How Does it Work?
Different organizations measure retirement savings in different ways, which means the data can vary depending on the source.
The most commonly referenced sources include:
Each of these sources is valuable, but they’re not interchangeable.
Understanding how the data is collected can help you make more meaningful comparisons:
The year the data was collected can also influence results. The latest study from the Federal Reserve, for example, is from 2022 and shows that the median retirement savings of all households is $87,000.
But the 2025 Transamerica survey estimates median retirement savings at about $71,000 among workers.
The takeaway: Use these numbers as context, not a verdict on your progress.
With those nuances in mind, here’s a broad look at median retirement savings in the United States across different data sources and methodologies.
The tables below compare two different views of retirement savings:
Because Empower’s data includes only individuals with retirement accounts—and excludes those with no savings—its figures tend to be higher than the Federal Reserve’s household-level data.
Age Range (Fed—Households)
Median Savings (Fed)
Average Savings (Fed)
Age Range (Empower—Individuals)
Median Savings (Empower)
Average Savings (Empower)
Under 35
$18,880
$49,130
30s
$92,533
$275,377
35-44
$45,000
$141,520
40s
$208,390
$573,660
45-54
$115,000
$313,220
50s
$438,886
$1,020,838
55-64
$185,000
$537,560
60s
$536,748
$1,185,486
65-74
$200,000
$609,230
70s
$432,043
$1,020,317
75+
$130,000
$462,410
80s
$336,783
$819,859
Notes: Federal Reserve data reflects U.S. households, including those with and without retirement accounts. Empower data reflects individuals with retirement accounts; balances may appear higher because it excludes those without savings.
Based on data from the 2025 Transamerica Center for Retirement Studies, here’s a look at the state of retirement savings by generation:
Generations
Estimated Median Retirement Savings**
Generation Z: born 1997 to 2012*
$31,000
Millennials: born 1981 to 1996
$65,000
Generation X: born 1965 to 1980
$107,000
Baby boomers: born 1946 to 1964
$270,000
*Only workers age 18 or over were eligible to take the survey
**Self-reported data from workers
According to the report, about two-thirds of workers say they’re saving for retirement outside of workplace plans. Baby boomers are more likely to have additional savings set aside (73%), compared with Generation X (65%), millennials (69%) and Gen Z (65%), though the share of workers saving outside of employer plans is relatively similar across generations overall.
Vanguard’s “How America Saves 2025” report provides a closer look at workplace-only retirement plans, including both account balances and contribution rates by age:
Age Range
Median Retirement Savings
Average Retirement Savings
Average % of Income Contributed
Under 25
$1,948
$6,899
5.5%
25-34
$16,255
$42,640
6.8%
$39,958
$103,552
7.3%
$67,796
$188,643
7.9%
$95,642
$271,320
9.3%
65+
$95,425
$299,442
10.1%
All Participants
$38,176
$148,153
7.7%
Note: Reflects participants in Vanguard defined contribution plans (e.g., 401(k), 403(b)).
A few consistent patterns emerge across most retirement savings data:
That trajectory is driven mostly by ongoing contributions, compound growth and, eventually, the shift from saving to spending.
Although not everyone’s retirement savings arc is the same, the median numbers tell a story about how people earn, spend and save at different stages of life.
Early-career incomes, student loans and job changes can make saving difficult for many Americans in their 20s and early 30s to find money to feather a nest egg.
But one major advantage this age group has is time. So instead of focusing on hitting a specific savings number, prioritize building strong financial habits early, such as:
READ MORE: 6 Steps to Create a Basic Budget That Works for You
This stage often brings higher income but also higher expenses from mortgages and childcare.
On the plus side, if you started saving early, you’re now seeing the payoff reflected in median account balances that are more than twice that of younger savers.
Some priorities at this stage of life might include:
A general rule of thumb is to aim to save about 15% of your income for retirement, including any employer match. If your employer contributes 4%, for example, you’d aim to contribute around 11% on your own.
This is also a time when many people are balancing multiple financial goals—like buying a home or saving for a child’s education—so being intentional about where your money goes can make a big difference over time.
READ MORE: 5 Tips to Make a Million Dollars With Your Current Salary
With peak earning years approaching, many people begin to focus more seriously on retirement at this phase.
It’s a good time to assess whether you’re on track—or whether there’s a big gap in how much you’ve saved and how much you’ll need to retire.
If you’re behind, increase contributions as needed and take advantage of catch-up strategies when you reach age 50 (in 2026, you can contribute an extra $1,100 to your IRA starting at that age and an additional $8,000 to a 401(k) and 403(b) plans
READ MORE: What to Do When You’re 1, 5 and 10 Years Out From Retirement
Retirement is on the horizon, and savings often ramp up.
At this stage:
Age 62 is the earliest you can start receiving Social Security benefits, which is a tempting strategy if you plan to retire early or are worried about your savings situation.
But filing for Social Security before your full retirement age—which is 67 if you were born in 1960 or later—significantly reduces your monthly benefit. Waiting longer to claim can increase your monthly payout, which can make a meaningful difference over a long retirement.
READ MORE: How to Open a Social Security Account in 5 Steps
This is when many people shift from saving to spending (or, in finance-speak, from accumulation to decumulation).
Some continue working, while others begin withdrawing from retirement accounts. Savings may plateau or begin to decline.
Your key focus now might include:
READ MORE: Should I Work 5 More Years or Retire?
At this stage, retirement planning becomes about making savings last and enjoying your life.
Some considerations include:
READ MORE: How to Use the Retirement Bucket Strategy to Manage Income
If your savings don’t match the median for your age group, there’s usually a reason—and it’s often outside of your control.
Factors that influence retirement savings include:
It’s also worth remembering that many people have wealth outside retirement accounts, such as home equity or other investments, which aren’t reflected in these numbers.
READ MORE: Tips to Save for 5 Key Milestones in Life
Median benchmarks are helpful, but they don’t tell you how much you need to save for retirement.
For that, you’ll need a more personalized approach.
Some experts suggest income-based benchmarks, which estimate how much you should have saved based on your salary at different ages.
These models use your pretax income as a starting point, based on the idea that your current earnings are a reasonable proxy for your future spending needs. They also assume your retirement income will come from a mix of personal savings and sources like Social Security.
Your Age
How Much of Your Annual Pretax Income You Should Have Saved
30
1x
35
2x
40
3x
45
4x
50
6x
55
7x
60
8x
65-67
10x
These benchmarks assume consistent saving (often around 10%-15% of income), investment growth and a retirement age in the mid- to late 60s.
Another approach is to estimate your annual retirement spending and multiply it by 25.
For example, if you plan to withdraw $60,000 per year in retirement, you should have $1.5 million saved by the time you retire.
Amount You Want To Withdraw Per Year
Amount You’ll Need in Savings by Retirement Age
$10,000
$250,000
$20,000
$500,000
$40,000
$1 million
$80,000
$2 million
$100,000
$2.5 million
$120,000
$3 million
$150,000
$3.75 million
Note: This assumes a roughly 4% annual withdrawal rate.
Salary multipliers and the 25x rule can give you a realistic idea of what you need to save. But the most accurate method is to estimate your actual expenses.
Think about:
The clearer your vision, the more precise your savings target can be.
READ MORE: 10 Questions to Help Accurately Calculate Your Retirement Numbers
Along the road to retirement, your savings strategies and administrative to-dos will evolve.
Use these checklists to help you stay on track and prioritize the right financial moves at each stage of life:
A retirement savings benchmark—like the median savings by age—can provide a quick temperature check on how your savings compares to your peers. Just keep in mind that it’s not the ultimate measure of how financially comfortable you’ll be in the future.
Your retirement plan should reflect your income, lifestyle and goals, not just national numbers.
Whether you’re just starting out or closing in on retirement, consistent saving, thoughtful planning and smart financial habits can help you build a future that works for you.
If you’re ready to take a closer look at your retirement plan, check out these 10 questions to help accurately calculate your retirement numbers.
Learn more about how Synchrony can help you.
Median Retirement Savings FAQ
What if most of my wealth is in my home?
That’s common. Home equity isn’t included in most retirement savings stats, but it can still play a role in your financial plan.
What’s a good retirement savings goal at my age?
A common guideline is to aim for 1x your salary saved by age 30, 3x by 40 and 6x by 50—but these are general benchmarks. The right goal for you depends on your income, lifestyle and retirement plans. A financial advisor or retirement calculator can help you estimate a more personalized target.
Where can I open an IRA?
Many financial institutions offer traditional and Roth IRAs, which can help you save for retirement with potential tax advantages.
Dayana Yochim is a personal finance writer with more than 20 years of experience. She is a former staff writer for NerdWallet, Bankrate, the Motley Fool and HerMoney, and has bylines at Woman’s Day, Forbes, Newsweek and several other publications.