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Retirement Planning

Retirement savings by age

If you're wondering how your savings stack up to other people your age, take a look at this article. We've compiled information on averages.

How do you compare?

Retirement. It's about working hard all your life while saving money and investing so you can spend your twilight years financially independent while relaxing, playing, and enjoying all the things life has to offer. According to a recent study from Fidelity, 82% of Americans report that their retirement plans have been impacted negatively by the pandemic.1 However, that same report indicates that 64% have thought about or have a plan already in place to save for retirement. And while the idea of “enough” is different for each individual, have you ever wondered how you compare with many other Americans in this race to the retirement finish line? In a nationwide survey conducted by Fidelity, thousands of respondents across the U.S. of various age groups disclosed how much they've managed to save for retirement.2 

Average retirement savings by age

Ages 20-29

Respondents in this age group had saved an average of $15,000 in their 401(k) savings as of fourth quarter 2020.

Ages 30 - 39

Those in their 30s have saved an average of $50,800. This age group contributes an estimated 8.3% of their earnings to their 401(k).64 percent of respondents had saved between $0 and $49,999. Another 25 percent had saved between $50,000 and $299,999, and 12 percent said they had saved $300,000 or more.

Ages 40 - 49

Contributing 8.9% of their earnings to 401(k), individuals in their 40s have saved an average of $120,800 for retirement.  

Ages 50+

As retirement creeps closer, individuals seem to increase their contributions to their 401(k)s, with contributions rates climbing to anywhere from 10 – 12%.

So how much should you save today?

The amount of money you will need for retirement will vary widely based on a number of factors, including your average salary and goals for retirement. However, many financial professionals have suggested using a formula of setting aside 10 percent to 15 percent of your annual income in order to pursue a comfortable retirement lifestyle. But keep in mind that even if you can't afford that much right now, you should contribute what you can and commit to making regular increases each year.

Regularly review your retirement investments

Having enough for retirement will require you to review your investment portfolio each year to make sure you are still comfortable with your investment choices. This might mean readjusting or balancing your portfolio holdings to stay aligned with your risk tolerance and time horizon. Everyone's situation is unique. Regularly reviewing your plan will help you understand whether you are on course to meeting your goals or need to change your strategy.


1.Fidelity, "2021 State of Retirement Planning," 2021.

2. Fidelity, 2020. 



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