Key takeaways:

• The typical American has an average retirement savings of $489,170
• Americans in their 60s have the most saved for retirement with average balances close to $1.2 million
• Average account balances more than double between those in their 20s vs their 30s
• Those in their 80s still have an average balance of almost $815,000 for retirement

There are many ways to save for retirement, including contributing to an employer-sponsored retirement plan, opening an individual retirement account (IRA), or purchasing investments through a brokerage account.

Empower research shows that the majority of Americans contribute to a retirement plan (70%), though contributions vary by generation: Only 47% of Gen Zers say they save in a retirement plan, such as a 401(k) or 403 (b), compared to 75% of Millennials and 76% of Gen Xers.

As you put money away for your golden years, you might be wondering what the average retirement savings look like by age and how your balances stack up. No matter where you are on your financial journey, there are steps you can take to improve.

Let’s dive into how total retirement account balances compare by age.

Total retirement savings data

According to Empower Personal Dashboard^TM data, the average retirement savings balance stands at $489,170, but the dollars differ by generation: Those 60 and older have the highest total balance across their accounts.

Take a look at this chart showing the total retirement savings breakdown by age group.

Anonymized data from Empower Personal Dashboard^TM as of November 4, 2024.

The above chart shows both the average and median retirement savings by age for all types of retirement accounts, such as 401(k) or IRAs. Across generations, the average retirement balance is much higher than the median, as high net worth individuals tend to drive up the average. These figures include retirement account* balance data from people who use Empower’s online financial dashboard and may include balances from both current and former employer-sponsored plans. It’s important to consider that investors who use online financial tools tend to be particularly engaged in saving for retirement and other financial best practices.

Median retirement savings by age

Retirement savings in your 20s

Americans in their 20s have an average retirement savings balance of $102,399; the median is $32,976. Your 20s are arguably the best age to start saving for retirement: The sooner you start saving, the greater potential impact compounding can have on your investments over time. 

Read more: Here’s what saving 1% more could mean for your retirement

Retirement savings in your 30s

Americans in their 30s have an average retirement savings balance of $243,142; the median is $95,378. Your 30s can be a great time to build up your emergency savings alongside saving for retirement. Empower research shows that 60% of Millennials (many of whom are in their 30s) worry about paying for emergency expenses and have just $500 on hand in case of emergency.

Retirement savings in your 40s

Americans in their 40s have an average retirement savings balance of $549,550; the median is $233,330. As you age, your salary may increase, and you might be able to contribute a greater percentage of your income to your retirement savings. In your 40s, you could start to think about increasing your retirement contributions to get closer to the $23,000 annual contribution limit for employer-sponsored retirement plans or the $7,000 limit for IRA contributions.

Retirement savings in your 50s

Americans in their 50s have an average retirement savings balance of $981,189; the median is $476,054. At 50, retirement is getting closer, and saving should be a top priority. If you’re 50 or older, you can contribute an additional $1,000 to an IRA and $7,500 to a 401(k) or 403(b) in catch-up contributions for 2024.

Retirement savings in your 60s

Americans in their 60s have an average retirement savings balance of $1,197,814; the median is $605,329, giving some retirement millionaire status. Your 60s are a great time to review your retirement savings goals and make sure they reflect your current lifestyle as retirement approaches. You can begin collecting Social Security checks as early as age 62, but your benefits will be higher the longer you wait to claim due to delayed retirement credits.

Retirement savings in your 70s

Americans in their 70s have an average retirement savings balance of $1,068,290; the median is $509,038, putting some 70-year-olds in the retirement millionaire bracket. Most Americans retire in their mid-60s and may start to see healthcare costs eating up a portion of their retirement nest egg. Empower research shows more than half of Americans (58%) are open to working indefinitely – motivated by these potential financial needs (41%) as much as personally fulfilment (40%).

Retirement savings in your 80s

Americans in their 80s have an average retirement savings balance of $814,811; the median is $368,202. Those in their 80s may want to think about legacy planning and how to manage their finances in their sunset years.

Read more: The average net worth by age

Importance of personalized retirement planning

While averages and medians provide a snapshot of where others stand in the journey towards retirement, it’s important to remember that the amount of money needed for a comfortable retirement is different for everyone.

There’s no one-size-fits-all benchmark for how much money you’ll need for retirement, so putting together a personalized retirement plan is crucial. You’ll want to consider:

• Financial status: What is your income? How much do you have in savings? Do you have any outstanding debt?
• Current contributions: How much are you currently contributing towards your retirement savings? Do you have access to an employer-sponsored 401(k) plan? Are you taking full advantage of 401(k) matching, if applicable? 
• Desired lifestyle in retirement: Do you plan to live frugally in retirement? Do you want to travel frequently? Where do you want to live? What kind of healthcare costs might you encounter? 
• Expected retirement age: When do you hope to retire? How realistic is that goal based on your current savings?
• Health and life expectancy: What kind of healthcare costs might you encounter? If you outlive the average lifespan, will you still have enough money to last through retirement? 

Taking a tailored approach can help ensure you’re saving enough today to plan for the retirement lifestyle you want to have in the future. Online tools like the Empower Retirement Planner can help you determine how much money you’ll need in retirement and if you need to adjust your savings strategy accordingly.

Read more: How much should I save for retirement?

The bottom line

While knowing the average retirement savings by age can give you something to compare your savings with, keep in mind that it isn’t the only measurement.

Knowing your financial goals and estimating how much you’ll need for your ideal retirement are helpful to identify and track your money goals.

Empower research shows that a “Return on Happiness” (ROH) isn’t just about reaching big money milestones – it’s achieved by incremental wins like being able to pay bills on time (67%), living debt free (65%), affording everyday luxuries without worry (54%). For over half of people, contentment is found in spending on experiences with those they cherish (53%) and in optimism for what’s next, including retiring on their own terms (37%).

For personalized advice on saving for retirement, consider consulting with a financial professional.