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Understanding Average Retirement Savings by Age 

Retirement Planning
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Happy mature couple on a couch looking up average retirement savings by age on a phone

When it comes to figuring out if your retirement savings are enough, there aren't many easy answers. Add in the habit of comparing your savings with coworkers, friends and family, and it gets even more difficult to find clarity. It can be hard to know if you're on track with your average retirement savings or falling behind.

One way to identify if you're on pace is to look at average retirement savings by age. There are plenty of guidelines and advice on saving for retirement, which can help you get on track — but they don't always tell the whole story.

You know your situation may be different from your neighbors and friends. However, it can be helpful to compare your numbers with what the average person has in their savings. To help you get started, we've pulled some key information, including the average worker income from the U.S. Bureau of Labor Statistics and the Federal Reserve, plus some experts' savings recommendations.

Ready to see how you compare to the suggested savings level? Here's how the average retirement savings by age breaks down through the decades.

Retirement Savings When You're in Your 20s

Suggested savings: A common recommendation at this age is to have the equivalent of your annual salary saved by the time you're about to turn 30. The median income of someone in their early-20s is approximately $33,000. Aim to have that amount in retirement savings by the end of your 20s.

Average savings: According to U.S. News & World Report, those under 25 have an average of $5,419 in their 401(k)s, while those 25-34 have an average of $26,839.

In your 20s, you're just starting your career — and your fully independent adult life. You have decades until retirement, which means you have time to learn about personal finance, save for retirement and pay off debt. In particular, reducing student loan debt is a common goal for people in this age group, as carrying significant debt can impact the ability to save down the road.

At this stage of life, having anything saved is better than nothing. Build your budget and stick to it.

Retirement Savings When You're in Your 30s

Suggested savings: Guidelines often recommend having three times your annual salary saved by 40. The median income for a 35-year-old is approximately $48,000, which means having $144,000 saved for retirement.

Average savings: The average retirement savings for those 35-44 is $72,578.

Here's where you can start seeing the recommended numbers diverge from reality. Many Americans struggle to save for retirement, but there are steps you can take to help reverse course. In your 30s, focus on boosting your 401(k). If your employer offers matching contributions, take advantage of them by contributing enough to maximize your employer's match. Continue to focus on paying down debt and review your budget.

You have a long horizon to retirement, so you have plenty of time to leverage compound interest to potentially grow your investments (though growth cannot be guaranteed due to market fluctuations).

MORE: How Much Money Do I Need to Retire & Stay Retired?

Retirement Savings When You're in Your 40s

Suggested savings: Having six times your annual salary saved by 50 is recommended. The median wage for employees at 45 is approximately $58,000. So, when you're in your late-40s, you'd want to aim to have around $348,000 in retirement savings.

Average savings: The average savings for those 45-54 is $135,777.

Most people hit their peak salary somewhere in their late 40s to early 50s. Now is when it becomes important to budget carefully. Get your expenses under control and increase your savings rate long before you enter your 40s, so you don't find yourself in a position of having to catch up.

In your 40s, focus on maximizing your 401(k) and retirement saving contributions.

Retirement Savings When You're in Your 50s & Beyond

Suggested savings: The general guidelines recommend having eight times your annual salary saved by 60. The median income for a 55-year-old is about $57,500, which means having $460,000 saved for retirement.

Average savings: The average savings for those 55-65 is $197,322, and the average for those over 65 is $216,720.

Your "official" retirement age is usually defined by when you're eligible to receive full Social Security benefits. For most people right now, that's between the ages of 65 and 67, depending on when they were born. Retirement is right around the corner. Now is the time to review your savings strategy and portfolio allocation. You might want to start rebalancing your portfolio to reduce potential risks and maximize your long-term savings.

MORE: How Much Do I Need to Retire at 50?

By the Time You Retire

The suggested savings guidelines say you need about ten times your annual salary in savings as you reach your full retirement age. The median salary of a 65-year-old is $54,000 per year — which means you'd need approximately $540,000 saved if you want to retire at 65.

If you're not on track right now, don't panic. The most important thing is to be aware and begin to focus on what you can control. You can start taking actions to help impact your financial situation positively — and perhaps even beat the average retirement savings by age in the decades to come.

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Information provided is general and educational in nature, and all products or services discussed may not be provided by Western & Southern Financial Group or its member companies (“the Company”). The information is not intended to be, and should not be construed as, legal or tax advice. The Company does not provide legal or tax advice. Laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of this information. Federal and state laws and regulations are complex and are subject to change. The Company makes no warranties with regard to the information or results obtained by its use. The Company disclaims any liability arising out of your use of, or reliance on, the information. Consult an attorney or tax advisor regarding your specific legal or tax situation.