How much does the average American retire with?

Average retirement savings of American households in 2022: $65,000 Year Median retirement account savings (2019 dollars) 2010 $51,843 2013 $64,792 2016 $63,814 2019 $65,000 7 more rows

fool.com - Average Retirement Savings in the U.S.: $65,000 | The Motley Fool

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The COVID-19 pandemic has created a huge amount of economic uncertainty. Many people are unsure of their financial future -- so much so that 40% of Americans are afraid they won't be able to retire because of financial setbacks related to the pandemic. Of course, retirement planning is a very personal journey. The amount you need to save depends on your age, income, desired retirement income, inflation, and more. So what's the average retirement savings in the United States? How does the average retirement savings by age vary? Do education and race affect retirement savings? We dug into the most recent data to find out. Key findings In 2019, the average retirement account savings for American households was $65,000.

The average American under 35 has $13,000 saved for retirement.

62% of Americans aged 18 to 29 have some retirement savings, but only 30% percent feel on track for retirement. 55% of non-retirees have a 401(k) or 403(b) while 25% have no retirement savings. Americans with a high school degree have an average retirement savings account value of $20,000, while those with a college degree have an average account value of $119,000. The average retirement savings of white Americans was roughly $45,000 more than that of Black and Hispanic Americans. Retirement savings for households in the bottom 25% of net worth grew by $2,710 from 1989 to 2019. Savings for the top 10% of net worth grew by over $600,000 during that same time period. 51% of Americans retire at 61 or earlier, and 23% retire between 62 and 64, before Medicare coverage kicks in at 65. White Americans tend to retire later than Black or Hispanic Americans, despite having more savings. Average retirement savings of American households in 2022: $65,000 The median retirement savings for American households have grown every three years since 1989 with few exceptions. The figures below are based on the 2019 Survey of Consumer Finances, the most recent set of data available. The data shows that Americans are saving more for retirement than they did 30 years ago. This is especially good considering that life expectancy has consistently gone up over the decades. Data source: Board of Governors of the Federal Reserve System (2020). Year Median retirement account savings (2019 dollars) 1989 $21,878 1992 $25,028 1995 $28,378 1998 $37,747 2001 $42,460 2004 $47,720 2007 $55,548 2010 $51,843 2013 $64,792 2016 $63,814 2019 $65,000 The mean retirement savings among Americans is significantly higher than the median savings, indicating some large outliers. We'll see a bit later that high earners have over $600,000 more in retirement savings than lower earners, likely accounting for some of this discrepancy. Data source: Board of Governors of the Federal Reserve System (2020). Year Mean retirement account savings (2019 dollars) 1989 $75,674 1992 $79,516 1995 $95,642 1998 $119,972 2001 $151,481 2004 $166,874 2007 $181,844 2010 $201,314 2013 $220,891 2016 $243,266 2019 $255,125 Average retirement savings of Americans under 35: $13,000 Most retirement savings are accrued after the age of 35 (a trend that parallels the average net worth by age). Median retirement savings grow $30,000 or more every 10 years for Americans over 35 until they reach 75 years of age. A few factors may be at play in this sharp increase: the power of compounding interest leading to snowballing returns in 401(k)s and similar retirement investing accounts, employer matching plans kicking in, higher incomes resulting in more savings, or a combination of all three. Average retirement savings by age (median) Data source: Board of Governors of the Federal Reserve System (2020). Year Under 35 35 to 44 45 to 54 55 to 64 65 to 74 Over 74 1989 $7,960 $19,890 $33,810 $47,730 $29,830 $31,820 1992 $8,040 $16,270 $50,060 $53,630 $35,750 $50,060 1995 $10,020 $24,370 $46,740 $53,420 $48,410 $39,230 1998 $11,010 $31,460 $55,050 $73,920 $59,770 $47,180 2001 $10,110 $41,310 $69,320 $79,430 $86,650 $69,320 2004 $14,910 $37,960 $75,240 $112,520 $108,450 $40,670 2007 $11,850 $45,670 $77,770 $123,440 $95,050 $43,200 2010 $12,490 $36,530 $70,690 $117,820 $117,820 $63,630 2013 $13,180 $46,890 $95,540 $114,210 $163,630 $75,770 2016 $12,780 $39,350 $87,210 $127,630 $134,220 $127,630 2019 $13,000 $60,000 $100,000 $134,000 $164,000 $83,000

Average retirement savings by age (mean)

Data source: Board of Governors of the Federal Reserve System (2020). Year Under 35 35 to 44 45 to 54 55 to 64 65 to 74 Over 74 1989 $18,220 $59,170 $103,910 $123,930 $97,910 $65,570 1992 $23,910 $48,960 $125,200 $126,940 $96,950 $99,470 1995 $31,480 $59,550 $145,870 $156,660 $139,980 $99,130 1998 $35,530 $82,200 $142,190 $225,310 $162,590 $146,090 2001 $27,250 $93,700 $183,640 $286,570 $252,760 $183,210 2004 $34,370 $92,370 $192,470 $293,460 $283,120 $160,940 2007 $30,830 $98,900 $189,640 $333,850 $329,570 $130,370 2010 $31,660 $99,320 $202,930 $342,940 $363,650 $204,720 2013 $31,730 $123,560 $192,260 $312,990 $486,490 $260,910 2016 $34,540 $106,520 $229,480 $396,760 $381,140 $357,760 2019 $30,170 $131,950 $254,720 $408,420 $426,070 $357,920 62% of Americans aged 18 to 29 have retirement savings, but only 28% feel on track Data source: Board of Governors of the Federal Reserve System (2022). Age Any retirement savings Retirement savings on track 18 to 29 62% 30% 30 to 44 75% 39% 45 to 59 84% 45% 60+ 87% 52% Overall 75% 40% Despite being the youngest age group in the Federal Reserve's dataset, 62% of Americans aged 18 to 29 had some retirement savings. Saving early is a surefire way to work towards a comfortable retirement. Despite that, only 30% of that age group felt as though their retirement savings were on track. This could reflect the relatively low amount of savings among Americans under 35 compared to older age groups. The older the age group, the more likely they are to have retirement savings and feel as though their savings are on track. Americans remained pessimistic about their preparedness for retirement. Just 45% of those aged 45 to 59 and only 52% of those 60 and over felt prepared. The Motley Fool recommends putting aside 15% of your annual income for retirement over the course of your career. That may sound like a lot at first, but it’s a goal to work towards. At a minimum, if you participate in a company-sponsored retirement plan, you should try to take full advantage of the company’s matching contributions. 55% of non-retirees have a 401(k) or 403(b), 25% have no retirement savings That only 55% of non-retirees have a 401(k) or 403(b) and 25% don't have any retirement savings at all is troublesome. While Social Security is an important social program, it's designed to replace only 40% of the average salary after retirement. Unfortunately, one in five married retired couples and 45% of single retirees depend on Social Security benefits for more than 90% of their income in retirement. To continue living a lifestyle consistent with the one they had before retirement, retirees need to rely on their own savings as well as Social Security benefits. The most common form of retirement savings are defined contribution pensions, like 401(k)s and 403(b)s. Over half of Americans have an account like this. And 36% have an individual retirement account (IRA), a similar type of retirement investment account. Data source: Board of Governors of the Federal Reserve System (2022). Forms of retirement savings among non-retirees Percentage of non-retirees Defined contribution pension (401(k), 403(b)) 55% Savings not in retirement accounts 52% IRA 36% Defined benefit pension 22% Other retirement savings 13% Business or real estate 10% None 25%

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This dataset doesn't differentiate between traditional IRAs, Roth IRAs, and other options – it's good to know the different types of IRAs and which is best for your situation. Average retirement savings of Americans with a college degree: $119,000 Educational attainment has a dramatic impact on retirement savings. The median retirement account value for someone with no high school diploma was $20,000, nearly $100,000 less than someone with a college degree. And Americans with a high school diploma had median retirement savings of $40,000, double those who had no high school diploma. The impact of educational attainment on retirement savings has become more pronounced over the past 30 years. In 1989, Americans with a college degree had saved about $4,000 more than those with no high school diploma, who had saved $19,890 on average. And Americans with a high school diploma had saved just $1,020 more than those without one. By 2019, the average retirement account value of Americans without a high school diploma hardly grew. Meanwhile, the average retirement savings of those with a high school diploma grew by about $24,000. The average savings of those with a college degree has grown by $85,010 since 1989, growing faster than those with no high school diploma and those with no college degree. Average retirement savings by level of education (median) Data source: Board of Governors of the Federal Reserve System (2020). Year No high school diploma High school diploma Some college College degree 1989 $19,890 $15,910 $15,910 $33,810 1992 $12,510 $17,880 $21,450 $41,120 1995 $15,860 $25,040 $26,710 $42,730 1998 $18,870 $26,420 $31,460 $64,170 2001 $14,440 $26,000 $30,330 $80,880 2004 $16,810 $27,110 $32,540 $97,610 2007 $18,520 $35,800 $44,440 $98,750 2010 $19,210 $29,460 $35,350 $106,040 2013 $15,370 $36,460 $45,020 $115,310 2016 $38,290 $38,290 $36,160 $124,440 2019 $20,000 $40,000 $41,000 $119,000

Average retirement savings by level of education (mean)

Data source: Board of Governors of the Federal Reserve System (2020). Year No high school diploma High school diploma Some college College degree 1989 $56,170 $43,600 $52,820 $116,980 1992 $27,640 $49,860 $49,160 $123,320 1995 $35,950 $61,420 $74,970 $149,280 1998 $36,220 $63,850 $79,970 $205,680 2001 $52,640 $71,690 $97,130 $250,210 2004 $42,160 $80,880 $103,950 $269,410 2007 $65,010 $82,660 $115,790 $300,430 2010 $41,530 $89,150 $106,720 $336,290 2013 $43,270 $95,570 $131,100 $342,030 2016 $141,970 $104,330 $136,520 $367,240 2019 $67,710 $119,840 $136,480 $381,190 Average retirement savings by race: white Americans saved $45,000 more than Black Americans It’s well documented that race can play a decisive factor in income and other measures of financial wellbeing. That's true when it comes to retirement savings as well. White Americans had a median average retirement account value of $80,000 -- $45,000 more than black Americans and $49,000 more than hispanic Americans. Similar to the impact educational attainment has on retirement savings, the median value of retirement savings for white Americans has grown faster than Black and Hispanic Americans since 1989. Average retirement savings by race or ethnicity (median) Data source: Board of Governors of the Federal Reserve System (2020). Year White, non-Hispanic Black, non-Hispanic Hispanic Other 1989 $23,870 $11,930 $8,550 $12,390 1992 $26,820 $9,830 $11,620 $35,750 1995 $30,210 $13,350 $20,030 $26,710 1998 $40,890 $17,300 $17,300 $31,460 2001 $50,840 $12,280 $14,440 $38,990 2004 $55,580 $20,340 $20,340 $43,380 2007 $65,420 $32,090 $20,980 $39,010 2010 $63,630 $21,210 $21,210 $45,950 2013 $83,460 $20,870 $17,680 $47,770 2016 $81,900 $26,270 $24,460 $55,310 2019 $80,000 $35,000 $31,000 $47,000

Average retirement savings by race or ethnicity (mean)

Data source: Board of Governors of the Federal Reserve System (2020). Year White, non-Hispanic Black, non-Hispanic Hispanic Other 1989 $79,740 $37,030 $49,040 $62,470 1992 $85,400 $35,080 $27,860 $86,900 1995 $103,060 $37,260 $64,330 $87,260 1998 $127,270 $50,580 $71,730 $143,660 2001 $169,290 $46,570 $58,620 $142,750 2004 $185,390 $80,970 $53,610 $117,610 2007 $207,430 $84,340 $80,220 $101,950 2010 $228,080 $62,240 $77,030 $173,270 2013 $259,840 $61,830 $43,510 $144,960 2016 $277,510 $79,480 $102,350 $221,820 2019 $294,190 $109,140 $107,010 $194,370 White Americans are also more likely to have retirement savings than Black and Hispanic Americans and were likewise more likely to feel as though their retirement savings are on track. Asian Americans were the most likely to have retirement savings and feel as though their savings are on track. Data source: Board of Governors of the Federal Reserve System (2022). Race/ethnicity Any retirement savings Retirement savings on track Asian 85% 52% White 81% 46% Black 64% 26% Hispanic 61% 25%

Average retirement savings by percentile of net worth (mean)

Data source: Board of Governors of the Federal Reserve System (2020). Year Less than 25th percentile 25th to 49.9th percentile 50th to 74.9th percentile 75th to 89.9th percentile 90th to 100th percentile 1989 $4,620 $11,440 $34,900 $77,710 $225,860 1992 $3,850 $11,840 $34,560 $76,110 $261,470 1995 $6,120 $17,590 $37,810 $96,940 $331,990 1998 $6,850 $19,710 $57,450 $123,820 $418,380 2001 $5,410 $20,220 $62,280 $164,180 $548,380 2004 $7,080 $23,080 $65,460 $182,740 $590,950 2007 $8,920 $26,400 $79,810 $195,970 $675,150 2010 $13,580 $21,540 $66,510 $196,060 $756,020 2013 $11,540 $20,310 $75,590 $212,050 $793,380 2016 $11,500 $23,180 $77,400 $245,300 $928,740 2019 $11,290 $27,530 $78,670 $243,530 $946,340 57% of all retirees use a pension or retirement plan as a source of income Investment accounts can be a powerful tool in planning for retirement, especially if consumers start investing early and make use of employer matches, if available. 57% of retirees use some sort of pension plan (which, in this dataset, includes defined benefit pensions, 401(k)s, 403(b)s, and similar accounts) for retirement income. It was not surprising that 78% of retirees used Social Security as a source of retirement income, and 92% of those over 65 did so. It's important to remember that Social Security benefits are meant to replace 40% of your annual salary in retirement, which is why preparing for retirement through saving and investing is so important. *The type of pension was not defined in this survey and could include plans that offer fixed monthly payments or defined contribution plans, such as a 401(k). Data source: Board of Governors of the Federal Reserve System (2022). Source of income in the past 12 months among retirees Retirees age 65 or older All retirees Social Security 92% 78% Pension* 66% 57% Interest, dividends, or rents 49% 43% Wages, salaries, or self-employment 25% 32% Cash transfers other than Social Security 7% 11% Retirement age: 51% of Americans retire at 61 or younger Data shows that, in 2019, 51% of Americans retired at 61 or earlier, and 23% retired between 62 and 64, before Medicare coverage kicks in at 65. And, despite white Americans having higher retirement savings on average, their average retirement age tends to be higher than Black and Hispanic Americans. Data source: Board of Governors of the Federal Reserve System (2021). Race/ethnicity 61 or earlier 62 to 64 65+ White 48% 24% 27% Black 56% 23% 17% Hispanic 65% 19% 15% All 51% 23% 24% Make a retirement plan and stay the course Attaining a comfortable retirement is generally a matter of planning ahead -- deciding how much to save and invest in a retirement fund each month -- and then sticking to that plan. The data reveals that the majority of American households follow that path and have a retirement fund available to them once they’ve hung up the boots and retired. But there’s room for improvement in retirement planning and saving. A quarter of non-retirees have no retirement savings. Thankfully, it’s never too late to start saving for retirement, and there are ways to catch up if you feel like you’ve fallen behind. Preparing for retirement is full of questions that don’t have simple answers. The Motley Fool has resources (including multiple retirement calculators) to help you take your first steps towards a comfortable retirement, but it’s always a good idea to consult a financial advisor to get personalized advice that fits your financial situation and goals.

fool.com - Average Retirement Savings in the U.S.: $65,000 | The Motley Fool