{"id":816,"date":"2024-02-29T05:17:09","date_gmt":"2024-02-29T13:17:09","guid":{"rendered":"https:\/\/qa.simplifimoney.com\/blog\/average-savings-by-age\/"},"modified":"2024-10-10T10:30:07","modified_gmt":"2024-10-10T17:30:07","slug":"average-savings-by-age","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/average-savings-by-age\/","title":{"rendered":"Average Retirement Savings by Age \u2014 Plus Net Worth Benchmarks"},"content":{"rendered":"\n<p>How much should you have saved for your retirement? Well, that depends. If your dream is a cozy tree house in the Midwest with great Wi-Fi, that won\u2019t set you back nearly as much as a Manhattan penthouse. Still, for every dream, there\u2019s a plan that can help you get there.<\/p>\n\n\n\n<p>Read on to discover the average retirement savings by age, with benchmarks for your net worth, too!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Savings benchmarks by age<\/strong><\/h2>\n\n\n\n<p>In the sections below for each decade of life, you\u2019ll find:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Average (median) <a href=\"https:\/\/www.federalreserve.gov\/econres\/scf\/dataviz\/scf\/table\/#series:Retirement_Accounts;demographic:agecl;population:all;units:median\">US retirement<\/a> savings by age \u2014 provided by the Survey of Consumer Finances<\/li>\n\n\n\n<li>Recommended savings guidelines by age<\/li>\n\n\n\n<li>Benchmarks for your net worth<\/li>\n\n\n\n<li>Tips for saving during that decade<\/li>\n<\/ul>\n\n\n\n<p><strong>What are \u201cmedian\u201d savings?<\/strong> Imagine lining people up according to how much they have in their retirement accounts, from the least to the most, then choosing the middle person. That\u2019s the median. Half of them have saved more, and half have saved less.<\/p>\n\n\n\n<p><strong>What is net worth?<\/strong> Net worth adds up all your assets (the cash in your bank accounts, your retirement savings, the value of your home, and so on) and subtracts your debt. This might be the most important retirement savings benchmark because it takes both your savings and debt into account.<\/p>\n\n\n\n<p>With no further ado, here we go \u2014 how much should you have saved by age? Here\u2019s a look at how it breaks down:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Age<\/strong><\/td><td><strong>Average retirement savings<\/strong><\/td><\/tr><tr><td><a href=\"#section1\" data-type=\"internal\" data-id=\"#section1\">Less than 35<\/a><\/td><td>$18,880<\/td><\/tr><tr><td><a href=\"#section2\" data-type=\"internal\" data-id=\"#section2\">35-44<\/a><\/td><td>$45,000<\/td><\/tr><tr><td><a href=\"#section3\" data-type=\"internal\" data-id=\"#section3\">45-54<\/a><\/td><td>$115,000<\/td><\/tr><tr><td><a href=\"#section4\" data-type=\"internal\" data-id=\"#section4\">55-64<\/a><\/td><td>$185,000<\/td><\/tr><tr><td><a href=\"#section5\" data-type=\"internal\" data-id=\"#section5\">65-74<\/a><\/td><td>$200,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:21px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"section1\"><strong>How much money should you have saved by age 35?<\/strong><\/h3>\n\n\n\n<p><strong>Median retirement savings if you\u2019re under 35<\/strong><\/p>\n\n\n\n<p>$18,880<\/p>\n\n\n\n<p><strong>Recommended savings if you\u2019re under 35<\/strong><\/p>\n\n\n\n<p>Although most people can\u2019t save a lot during their 20s and early 30s, it\u2019s still a great time to start. Financial advisors recommend saving 10% to 15% of your income from the day you start working, but don\u2019t worry if your education is pushing that back a few years. Earning a college degree <a href=\"https:\/\/www2.ed.gov\/policy\/highered\/reg\/hearulemaking\/2011\/collegepayoff.pdf\">should pay off<\/a> in the long run.<\/p>\n\n\n\n<p><strong>Net worth benchmark if you\u2019re under 35<\/strong><\/p>\n\n\n\n<p>Worried about your net worth before you\u2019re 35? Many younger people have a negative net worth (more debt than assets), and that\u2019s okay. Young people borrow money to go to college, to buy their first car, and\/or maybe even to buy a home. Add in the expenses of having children, paying off student loans, and staying on top of your bills, and it can definitely take a while to build that net worth \u2014 don\u2019t worry, it\u2019s to be expected. Just stay focused on the big picture!<\/p>\n\n\n\n<p>Over the course of your career, you\u2019ll turn those savings around \u2014 as long as you pay attention to your finances.<\/p>\n\n\n\n<p><strong>Tips for saving when you\u2019re in your 20s and early 30s<\/strong><\/p>\n\n\n\n<p>During this period in your life, focus on getting a good start. That might mean earning a degree to raise your income over the life of your career, or beginning your career early so you have more time to hone your skills and rise up through the ranks.<\/p>\n\n\n\n<p>Once you start working, put at least 10% of every paycheck into some kind of savings. That one financial habit will go a long way toward securing your retirement \u2014 <a href=\"https:\/\/www.quicken.com\/blog\/how-to-retire-early\">maybe even early retirement<\/a>!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"section2\"><strong>How much money should you have saved by 44?<\/strong><\/h3>\n\n\n\n<p><strong>Median retirement savings for ages 35 to 44<\/strong><\/p>\n\n\n\n<p>$45,000<\/p>\n\n\n\n<p><strong>Recommended savings for ages 35 to 44<\/strong><\/p>\n\n\n\n<p>For folks between 35-44 years old, the general rule of thumb is to try to save up 1\u20132 times your annual salary. It\u2019s a lofty goal, but you have a whole decade to make it happen. Hey, if you save 10% of your salary every year for ten years, that\u2019s 100% of your salary!<\/p>\n\n\n\n<p><strong>Net worth benchmark for ages 35 to 44<\/strong><\/p>\n\n\n\n<p>For these years of your life, experts recommend focusing on your savings more than your net worth. Why? Well, for two reasons.<\/p>\n\n\n\n<p>First, many people really \u201csettle in\u201d in this segment of their lives. They may renovate bathrooms and build new decks. They watch their children take their first steps \u2014 and start running! They may take family trips and spend money to provide for them. That spending often outweighs earnings, keeping net worth in the red for a few more years \u2014 especially since most college graduates are still <a href=\"https:\/\/www.cnbc.com\/select\/how-long-it-takes-to-pay-off-student-loans\/\">paying off student debt into their mid 40s<\/a>.<\/p>\n\n\n\n<p>Second, people build several different kinds of savings throughout this decade, not just their retirement savings. They build up larger emergency funds to cover their mortgage in a crisis. They may build a rainy-day fund. Or start a college fund.<\/p>\n\n\n\n<p>If all your savings together add up to 1\u20132 times your salary, and if the part in your retirement fund is worth about half your salary, you\u2019re in solid shape.<\/p>\n\n\n\n<p><strong>Tips for saving when you\u2019re 35 to 44<\/strong><\/p>\n\n\n\n<p>Here are three key tips for saving that can keep you on a great financial path from 35 to 44:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Make saving a habit.<\/strong> Don\u2019t fall into the trap of telling yourself you\u2019ll catch up later. Add to your savings <em>first<\/em> every month, then spend what you have left after savings and bills on the fun stuff.<\/li>\n\n\n\n<li><strong>Create a budget.<\/strong> The best way to stick with that savings habit is to <a href=\"https:\/\/www.quicken.com\/goals\/stay-on-budget\/\">build a budget<\/a>. Start with your income, subtract what you want to put toward savings, then track the rest of your spending so you can cover your bills and still have some fun.<\/li>\n\n\n\n<li><strong>Figure out your savings goals.<\/strong> Your financial needs may change a lot in your late 30s and early 40s, especially if you have children. Create a holistic savings plan that takes those needs into account so you don\u2019t rack up credit card debt accidentally.<\/li>\n<\/ol>\n\n\n\n<p>Remember, debt isn\u2019t something to be afraid of \u2014 it\u2019s just important to be intentional. When you plan ahead and choose your debts wisely (like a mortgage, school loan, or low-interest car loan), you\u2019ll come out ahead in the long run.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"section3\"><strong>How much money should you have saved by 54<\/strong><\/h3>\n\n\n\n<p><strong>Median retirement savings for ages 45 to 54<\/strong><\/p>\n\n\n\n<p>$115,000<\/p>\n\n\n\n<p><strong>Recommended savings for ages 45 to 54<\/strong><\/p>\n\n\n\n<p>A good rule of thumb for people in this age bracket is to work on having 3\u20134 times your annual salary saved up. As you can see from the median US savings above, a lot of people have trouble keeping up with that plan.<\/p>\n\n\n\n<p>Of course, it\u2019s easier to hit the mark if you\u2019ve been saving 10\u201315% of your salary since your 20s, but this is also where net worth starts to become a key indicator of your financial health.<\/p>\n\n\n\n<p><strong>Net worth benchmark for ages 45 to 54<\/strong><\/p>\n\n\n\n<p>Remember, reaching a high savings goal but having just as much debt means you\u2019re basically breaking even. During this age range, it\u2019s time to start setting goals around your net worth: the sum total of all your assets, minus your total debt.<\/p>\n\n\n\n<p>By the time you turn 45, having a net worth of twice your annual salary is a great benchmark.<\/p>\n\n\n\n<p>The good news is that paying down debt helps build your net worth \u2014 and many people pay down a lot of debt during this decade. If you\u2019re paying down debt, contributing to a retirement fund, and building up your other savings too (including equity in a home), it\u2019s even more likely that you\u2019ll hit this target \u2014 or catch up to it soon.<\/p>\n\n\n\n<p><strong>Tips for saving when for ages 45 to 54<\/strong><\/p>\n\n\n\n<p>Add these new tips to the 3 from the previous decade to take your savings up a notch:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Put your savings on auto-pilot.<\/strong> Set up your 401(k) contributions, IRA contributions, and personal savings to happen automatically every month \u2014 that will help you make sure they\u2019re always a priority.<\/li>\n\n\n\n<li><strong>Consider other investments.<\/strong> If you\u2019re maximizing your retirement contributions and your emergency fund is looking great, consider opening a <a href=\"https:\/\/www.quicken.com\/blog\/investment-strategies\/\">private brokerage account<\/a> or investing in real estate. Don\u2019t let your money sit around idly \u2014 put it to work.<\/li>\n\n\n\n<li><strong>Upgrade your financial tracking.<\/strong> As your finances get more complex, it\u2019s harder to stay on top of everything. To see and track your entire net worth, consider using <a href=\"https:\/\/www.quicken.com\/\">Quicken<\/a> to put everything in one place.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"section4\"><strong>Retirement savings goals from 55 to 64<\/strong><\/h3>\n\n\n\n<p><strong>Median retirement savings for ages 55 to 64<\/strong><\/p>\n\n\n\n<p>$185,000<\/p>\n\n\n\n<p><strong>Recommended savings for ages 55 to 64<\/strong><\/p>\n\n\n\n<p>The generally recommended savings goal is 8\u201310 times your annual salary in this age bracket, but averages become less and less important as you approach retirement. What matters more are your own specifics \u2014 like when you expect to retire, where you want to retire, and how you want to live during the next chapter of your life.<\/p>\n\n\n\n<p><strong>Net worth benchmark for ages 55 to 64<\/strong><\/p>\n\n\n\n<p>By age 64, the rule-of-thumb benchmark for your net worth is 6 times your salary. Still, what was true for your savings is true here too. Benchmarks become far less important than your individual needs and goals.<\/p>\n\n\n\n<p><strong>Tips for saving from ages 55 to 64<\/strong><\/p>\n\n\n\n<p>The most important thing in your late 50s to early 60s is to make sure your retirement plan is going to work. The good news? You can still adjust it even if things aren\u2019t where you want them to be \u2014 by downsizing your retirement lifestyle, working a little longer, or both.<\/p>\n\n\n\n<p>And there\u2019s a third option, too \u2014 spend your 60s exploring <em>different<\/em> work you might want to do after you \u201cretire.\u201d Here\u2019s the thing about working \u2014 there are a lot more choices than just your current job or no job. Retired people work as private consultants and advisors, freelancers, mediators, life coaches, tutors, and a whole host of other jobs that leverage a lifetime of experience without requiring a 40-hour workweek or a daily commute.<\/p>\n\n\n\n<p>So if you don\u2019t like your current retirement plan, spend the next few years pivoting in a new direction. You never know what opportunities you might discover, enhancing your retirement financially and enriching your life at the same time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"section5\"><strong>Retirement savings goals from 65 to 74<\/strong><\/h3>\n\n\n\n<p><strong>Median retirement savings for ages 65 to 74<\/strong><\/p>\n\n\n\n<p>$200,000<\/p>\n\n\n\n<p><strong>Recommended savings for ages 65 to 74<\/strong><\/p>\n\n\n\n<p>At some point during this period of your life, you\u2019re probably entering retirement \u2014 time to do whatever you want. As you approach retirement, your recommended savings should be on par with what you need to support yourself during your golden years. Remember, retirement looks different for everyone \u2014 what matters is that your choices fit your financial situation.&nbsp;<\/p>\n\n\n\n<p><strong>Net worth benchmark for ages 65 to 74<\/strong><\/p>\n\n\n\n<p>By age 74, you\u2019ve left those benchmarks behind \u2014 now, all that matters is making sure your finances are secure for a long, comfortable retirement. Adjust your lifestyle and your living situation if you need to, and get ready to enjoy retirement in the age of free (or at least cheap) entertainment.<\/p>\n\n\n\n<p><strong>Tips for protecting your savings from ages 65 to 74<\/strong><\/p>\n\n\n\n<p>Congratulations! It\u2019s time to reap the rewards of your career \u2014 and your savings. Just make sure you have a retirement plan that lets you <a href=\"https:\/\/www.quicken.com\/blog\/make-most-of-retirement-money\/\">live sustainably on a fixed income<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Building a retirement savings plan that works<\/h2>\n\n\n\n<p>If you aren\u2019t sure whether your retirement plan is on track, check out our <a href=\"https:\/\/www.quicken.com\/resources\/calculators\/retirement-calculator\">free retirement calculator<\/a>. Enter your info at the top, then scroll down to the <strong>Retirement (optional)<\/strong> tab to include Social Security payments and other post-retirement income. That can make a big difference.<\/p>\n\n\n\n<p>It\u2019s also worth making sure you don\u2019t have an unclaimed 401(k) you might have forgotten about. <a href=\"https:\/\/www.quicken.com\/blog\/find-unclaimed-401k\/\">Learn how to check that here.<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The bottom line<\/strong><\/h2>\n\n\n\n<p>Through every decade, one thing is certain: tracking your finances and creating a plan to grow your net worth is the best way to reach your goals.&nbsp;<\/p>\n\n\n\n<p>To see how Quicken can help you <a href=\"https:\/\/www.quicken.com\/goals\/retirement-plans\/\">track and plan your retirement, start here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How much should you have saved for retirement? Pulled from The Federal Reserve, here are the average retirement savings by age \u2014 with tips to increase yours.<\/p>\n","protected":false},"author":59,"featured_media":7066,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"106","_seopress_titles_title":"Average Retirement Savings by Age \u2014 Plus Net Worth Benchmarks | Quicken","_seopress_titles_desc":"How much should you have saved for retirement? Pulled from The Federal Reserve, here are the average retirement savings by age \u2014 with tips to increase yours.","_seopress_robots_index":"","inline_featured_image":false,"footnotes":""},"categories":[106],"tags":[],"class_list":["post-816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-retirement"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.quicken.com\/blog\/wp-content\/uploads\/2023\/10\/young-women-at-home-using-tab.jpg","_links":{"self":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/comments?post=816"}],"version-history":[{"count":8,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/816\/revisions"}],"predecessor-version":[{"id":7458,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/816\/revisions\/7458"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media\/7066"}],"wp:attachment":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media?parent=816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/categories?post=816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/tags?post=816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}