By Amelia Josephson

If you’re wondering what’s a normal amount of retirement savings, you’re probably one of the 60% of Americans who either don’t think their savings are on track or aren’t sure, according to the Federal Reserve’s “Report on the Economic Well-Being of U.S. Households in 2019.” Among all adults, median retirement savings are $65,000, according to the Federal Reserve’s most recent data. The Federal Reserve also estimated that by retirement, that number would grow to an average of $255,200.

Of course, these figures reflect the situation of people who have retirement accounts, though about a quarter of Americans don’t. For those who do, 54% have employer-sponsored accounts and 48% having savings in non-retirement accounts. A smaller percentage (21%) have pensions.

As you get closer to retirement, you tend to save more and invest conservatively. So knowing how your retirement savings compares to your peers can be helpful. A financial advisor can help you manage your retirement savings and plan for the future.

Average Retirement Savings by Age
First, it can’t be stressed enough that too many of us aren’t even saving for retirement. According to the Federal Reserve, one in four Americans have no retirement savings. Taking them and people who aren’t saving enough into account, the Employee Benefit Research Institute estimated the retirement savings deficit to be $3.68 trillion in early 2020. That means all U.S. households (with a head of household between the ages of 25 and 64) have a total $3.68 trillion less in savings than they should have for retirement.

As we stated earlier, research by the Federal Reserve found that the median retirement account balance in the U.S. – looking only at those who have retirement accounts – was just $65,000 in 2019 (the survey is conducted every three years). The conditional mean balance was $255,200.

A June 2022 study by Vanguard called “How America Saves 2022” calculated average and median retirement account balances of Vanguard account holders by age. Here’s how the numbers break out:

What Is the Median Household Net Worth?
It isn’t just retirement accounts that Americans lack. Looking at overall net worth tells a similar story, although these figures have been consistently rising since the Great Recession.

In the Federal Reserve’s latest Survey of Consumer Finances (SCF) report, the median household net worth for a head of household age 35-44 years old is $91,300. For a head of household age 45 to 54 years old, that figure is $168,600. In the 55-64 age range, average net worth is $212,500. Including all age groups median net worth rose 18% from the 2016 survey to $121,700.

Why Social Security Benefits Alone Won’t Be Enough to Retire On
For many Americans, Social Security benefits are the only source of income during their retirement. Social Security was never meant to be the sole source of retirement income, though. Retired workers average a monthly Social Security benefit of $1,624 as of July 2022. Add the rising debt levels among older Americans and you have a situation that’s a far cry from most people’s’ retirement dream of travel and leisure.

Source @smartasset