Average Retirement Fund Balance in the United States

Average Retirement Savings by Age Group

The average retirement fund balance varies significantly depending on the age group, with younger workers typically having much less saved than those nearing retirement. According to data from the Federal Reserve's Survey of Consumer Finances, families headed by someone under 35 have a median retirement account balance around $13,000, while those aged 55 to 64 have a median closer to $200,000. These figures represent account-level averages, not the full picture of household wealth.

Recommended Savings Targets

Financial planners often suggest having saved roughly one times your annual salary by age 30, three times by 40, and six times by 50. By the time you reach 67, the target is typically eight to ten times your final salary. The average retirement fund balance frequently falls short of these benchmarks, leaving many households reliant on Social Security to supplement their income.

Factors That Influence Retirement Savings

Several factors shape how much a person accumulates, including access to an employer-sponsored plan, income level, and years in the workforce. Workers without a workplace plan often have far lower balances, and lower-income households tend to save a smaller share of their earnings. Fees, investment choices, and early withdrawals also erode balances over time.

How the Average Compares to the Median

The mean retirement account balance is higher than the median because a small number of households hold a large share of the wealth. That gap means the average can overstate what a typical person has saved. Looking at median figures gives a more realistic sense of where most households stand.

Building a More Secure Retirement

Increasing contributions, taking full advantage of employer matches, and delaying retirement by even a few years can meaningfully raise the average retirement fund balance. Automating savings and keeping investment costs low are two of the simplest steps anyone can take to improve their long-term financial outlook.