Retirement Savings by Age

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. However, a recent Gallup poll found that 59 percent of Americans surveyed were very or moderately worried they won’t have enough money for retirement— it was by far their biggest concern heading into their golden years.¹

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, 1,103 respondents of various age groups disclosed how much they’ve managed to save for retirement.²

Average Retirement Savings By Age

• Ages 25-32

  When asked, 72 percent of respondents in this age group had $49,999 or less saved for retirement, with the majority admitting that they actually had $5,000 or less saved. The median amount for this age group was $12,000.

  Ages 33-44

  This age group had savings in the middle ranges, 62 percent of respondents having savings of between $10,000 and $249,999, with the median amount being $61,000.

  Ages 45-54

  Among the 45 to 54-year-olds, 56 percent had savings of between $25,000 and $499,999, with the median amount for this age range reported as $101,000.

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, 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.

Saving enough for retirement means you may need 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 level of risk and ensuring that what you’re currently doing is in line with your retirement goals while keeping your financial situation and/or number of years you may be from retirement top of mind.

Just as this survey indicates, 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. Gallup’s Annual Economy and Personal Finance poll, 2014.
2. LearnVest and Chase Blueprint, 2013.