You're Beating the Average Retirement Saver if You Have More Than This

It’s normal to want to know how you stack up financially against others, especially when it comes to retirement savings. There are so many variables in retirement planning that it’s hard to know what target you should be aiming for, and it can be comforting to know you’re not drastically behind others.

However, knowing where you stand relative to the typical saver may not tell you everything you need to know. Here’s a closer look at how much the average retirement saver has and what that does and doesn’t say about where you stand.

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The median retirement savings balance is $87,000

The median retirement savings balance as of 2022 was $87,000, according to the Federal Reserve. The average was notably higher at $333,940, but the median is usually a better indicator of where the typical saver is at. Averages are easily skewed by a few high earners.

If we break things down by age, we see a predictable trend: Older generations tend to have more savings than younger ones, at least until they start living off that money. The following table breaks down the median savings by age range:

Data source: Federal Reserve.

What this data doesn’t show is that a large chunk of families – more than 45% – don’t have any retirement savings. So many are doing far worse than what the table above would indicate.

What these numbers don’t tell you

If you’re at or above the median for your age range, that’s a sign you’re off to a pretty good start. But it doesn’t necessarily mean you’re on track for your retirement goals. To know that, you’d need to compare your savings balance against your personalized savings target.

Use this as your benchmark instead, and make adjustments when possible to keep yourself moving in the right direction. That might mean increasing your savings rate if you can afford it. If that isn’t an option, you may have to push your retirement date back a little bit. This may not be ideal, but it’s better than burning through your savings too quickly.

Keep tabs on your progress as you near retirement age. Review your account balances at least annually and stay on the lookout for new opportunities to increase your contribution rate.