Key Takeaways
- 54% of Americans report no dedicated retirement savings, according to the Federal Reserve’s 2022 Survey of Consumer Finances.1
- $1.26 million is the new target for comfortable retirement in 2025.2
- See how retirement savings compare by age and generation — plus get actionable planning tips.
If you’re taking steps to save for retirement, you may be interested to know how your efforts stack up to others in your age group. It’s natural to wonder how you compare to others, especially as you make decisions about how to save and spend your income.
Key Retirement Savings Statistics for 2025
A recent study showed that $1.26 million in savings is the “magic number” of assets to retire comfortably in 2025.2 Whether you’re on track to reach that number or not, you may be wondering, “How do I stack up compared to others my age?”
How Much Does the Average American Have Saved for Retirement?
Before we look at numbers by age group, it’s important to note that 54% of American households reported having no dedicated retirement savings, so if you’re saving at all, you’re doing better than the majority of Americans.1 However, the total 401(k) savings rate for those who contribute is 14.3%,3 which is a record high that highlights a wide gap in retirement readiness between savers and non-savers.4
Median vs. Mean Retirement Savings by Age (2022)
Following is a breakdown of retirement savings by age group.5
| Age Range | Median Savings | Mean Savings |
|---|---|---|
| Younger than 35 | $18,800 | $49,130 |
| 35-44 | $45,000 | $141,520 |
| 45-54 | $115,000 | $313,220 |
| 55-64 | $185,000 | $537,560 |
| 65-74 | $200,000 | $609,230 |
| 75 and older | $130,000 | $462,410 |
The numbers above account for all types of retirement savings. Once you see how your balance compares to these benchmarks, use our calculator to determine how long your money will last in retirement and see if you are on track to support your desired lifestyle.
Retirement Savings by Generation
When it comes to saving for retirement, each generation faces its own unique challenges.
Baby boomers
While some baby boomers have acquired significant assets and investments, many worry their retirement savings won’t last. Earlier generations were able to sell the large family home and downsize in order to save on living expenses. However, the current real estate environment and high interest rates make that transition unrealistic for many baby boomers, which can lead to higher ongoing housing costs as they continue maintaining a large home.
Generation X
As Gen Xers near retirement age, many find themselves supporting both aging parents and their own children, which can make it challenging to prioritize saving for retirement. Gen Xers also face significant debt, as many members of this generation carry credit card balances and outstanding student loans for either themselves or their children.
Millennials
Millennials are faced with a high cost of living, which makes it difficult to save for retirement. In addition, many carry significant student loan and credit card debt and find that their monthly debt payments significantly eat into their net income. This combination of high costs and high debt has the potential to hinder millennials from achieving important life milestones, such as getting married, buying a home and having children. All this can make saving for retirement more difficult.
Generation Z
Having grown up during a period of increased job mobility and the rise of the gig economy, fewer Gen Zers are interested in working for traditional employers. This means fewer have access to the long-term benefits of an employer-sponsored retirement plan. In addition, Gen Zers’ inability to afford a home in today’s challenging market can impede their ability to build long-term wealth through traditional avenues. Add to that the challenges of keeping up with an ever-rising cost of living, and it’s no wonder Gen Z faces challenges when it comes to saving for retirement.
How to Improve Your Retirement Savings
Keep in mind that if you’re part of the 54% of Americans who haven’t yet started saving for retirement (as of 2022), now’s the best time to begin. Even setting aside a small amount each month can have a big impact on your retirement security over the long run.
