The average American reported having $87,000 saved in their retirement accounts in 2022, according to the latest Survey of Consumer Finances conducted by the Federal Reserve. However, this figure varies significantly across different age groups. For those under 35, the median retirement account balance is much lower.
It then increases steadily with age, peaking among those aged 65 to 74 before declining as retirees begin making withdrawals. In addition to retirement accounts, the survey also looked at other types of investments. About 7% of participants had money in certificates of deposit, with a median balance of $26,000.
Bonds were held by just 1% of respondents, but those who did own them had a median value of $211,000 invested.
average retirement savings by age
Stocks were more common, with 21% reporting ownership.
The median stock investment value across all households was $15,000. Pooled investment funds, including bond funds and stock funds, were owned by 12% of participants. The median value invested in these vehicles was $150,000.
While some may feel discouraged by their current savings compared to these figures, it’s important to remember that it’s never too late to start saving more for retirement. Even small increases in contributions can add up significantly over time thanks to the power of compound interest. Those who are behind on their retirement savings should consider taking steps like claiming their full employer 401(k) match, working a side gig to boost their income, and ensuring their investment portfolio is allocated appropriately for their age and risk tolerance.
With dedication and patience, nearly anyone can improve their financial standing and increase their chances of a comfortable retirement.
