The Federal Reserve's 2022 Survey of Consumer Finances shows median retirement savings by age group. Americans under 35 have saved a median of $18,880. Those aged 35-44 have $45,000 saved. The 45-54 age group has $115,000. People aged 55-64 have $185,000. Those 65-74 have $200,000. Americans over 75 have $130,000 saved.
Fidelity Investments recommends these savings targets by age, assuming you save 15% of annual income starting at 25 and retire at 67. By age 30, save 1x your salary. By 35, reach 2x your salary. By 40, accumulate 3x your salary. By 45, aim for 4x your salary. By 50, save 6x your salary. By 55, reach 7x your salary. By 60, have 8x your salary saved. By 67, accumulate 10x your salary.
Americans expect they will need $1.46 million saved to retire comfortably, according to a Northwestern Mutual study. Most are not saving enough to meet that goal.
If you fall behind these benchmarks, increase contributions to tax-advantaged retirement accounts. At age 50, you can make catch-up contributions that allow you to store more than the IRS normally permits. Delaying Social Security benefits until age 70 will increase your monthly retirement income. Trimming spending on housing, transportation, and food can free up money to save more.