When it comes to money, few topics spark as much quiet comparison as how much we’ve managed to save. Whether it’s setting aside cash for emergencies, investing for retirement, or simply building a rainy-day fund, understanding the average American savings can provide a valuable benchmark. It tells you where you stand — not to judge, but to help you plan.
The truth is, savings habits in the United States are as diverse as the people themselves. Some save diligently from their first job, while others find it difficult to put money away amid rising living costs and debt. But when we look at nationwide data, a clearer picture emerges — and that’s what we’ll explore in this article: the average American savings by age, why it varies, and how you can use it to shape your financial future.
Why Understanding Average American Savings Matters
Money may not buy happiness, but it certainly buys peace of mind. Having a healthy savings cushion helps protect against unexpected expenses, job loss, or emergencies — and it also provides the foundation for long-term goals like homeownership, education, or retirement.
Understanding average American savings isn’t about competition; it’s about awareness. By comparing your savings to national averages, you can identify whether you’re on track or if adjustments are needed. This insight can also motivate you to develop better financial habits, such as automating savings or reducing unnecessary expenses.
Most importantly, it demystifies the financial progress of others. It’s easy to assume everyone else has more money saved than you, but data often reveals that most Americans face similar struggles.
How Savings Are Measured in the U.S.
Before we dive into the numbers, it’s crucial to understand how these figures are compiled. Institutions like the Federal Reserve regularly collect and analyze household savings data through surveys and reports.
The data typically distinguishes between:
- Median savings, representing the middle point where half of Americans have more and half have less.
- Mean (average) savings, which can be skewed higher by a small number of very wealthy households.
For realistic comparison, median figures often provide a more accurate picture of what most Americans have actually saved.
Average American Savings by Age (Real-World Data)
According to the Federal Reserve’s 2022 Survey of Consumer Finances and more recent estimates, here’s how savings generally look across different age brackets:
| Age Group | Median Savings (All Accounts) | Average Savings | Typical Retirement Account Balance |
|---|---|---|---|
| Under 35 | $12,000 | $20,500 | $16,000 |
| 35–44 | $28,800 | $41,500 | $60,000 |
| 45–54 | $48,200 | $71,100 | $110,000 |
| 55–64 | $57,000 | $89,300 | $165,000 |
| 65–74 | $68,000 | $113,900 | $205,000 |
| 75+ | $55,000 | $92,000 | $185,000 |
(Sources: Federal Reserve SCF 2022)
These numbers highlight a few key patterns. First, savings naturally rise with age, peaking near retirement. Second, the average values are significantly higher than medians — meaning a relatively small number of wealthy households lift the national averages. And third, many Americans still struggle to build sufficient emergency savings, despite higher incomes later in life.
What the Numbers Say About the Average American Saver
The average American savings paints a complex picture. While some households are thriving, millions live paycheck to paycheck. According to Bankrate’s 2024 Emergency Savings Report, more than 44% of Americans say they couldn’t cover a $1,000 emergency expense with savings alone — a figure that has barely improved over the past decade.
This suggests that even as income levels rise, expenses, debt, and lifestyle inflation often outpace savings growth. The U.S. savings rate has also fluctuated dramatically, dipping as low as 3.5% in 2023, according to the U.S. Bureau of Economic Analysis.
These trends show that while some progress is being made in awareness and financial literacy, consistent saving remains a challenge for many households.
Average American Savings in 20s and 30s
In your twenties, savings are often limited by low starting salaries, student loans, and high living costs. But this period is also the most critical time to establish habits that compound over decades.
Data shows that the average American savings for individuals under 35 is around $12,000 (median). While that might sound low, even small amounts saved early can grow significantly through compound interest.
By your thirties, priorities shift — perhaps buying a home, getting married, or starting a family. Savings rates tend to improve, but so do financial responsibilities. The challenge is balancing current lifestyle needs with future goals, like retirement planning or building a safety net.
A good rule of thumb recommended by Fidelity Investments is to have roughly your annual salary saved by age 30 and about twice that by age 40. But remember, benchmarks are guides — not judgments.
Average American Savings in 40s and 50s
The forties and fifties are often considered the “prime earning years.” For many Americans, this is when incomes are highest and financial stability feels achievable. However, it’s also the period when expenses peak — from mortgage payments to college tuition and healthcare.
The average American savings in this bracket ranges between $40,000 and $70,000 for general savings, and over $100,000 for retirement accounts. While those numbers sound encouraging, they’re often not enough to maintain one’s lifestyle post-retirement without continued growth and contributions.
Financial experts suggest increasing retirement contributions to at least 15% of income during this stage, especially if you started saving late. Taking advantage of employer 401(k) matches or tax-advantaged IRAs can help accelerate progress.
Average American Savings in Your 60s and Beyond
As retirement approaches, savings take center stage. For Americans aged 60 and above, the median total savings is about $68,000, while retirement-specific accounts average around $205,000.
But here’s the catch: healthcare costs, inflation, and longer lifespans can quickly erode retirement security. Many retirees depend heavily on Social Security, which provides an average monthly benefit of roughly $1,900 as of 2024 — often not enough to cover all living expenses.
That’s why experts emphasize continuing to invest even during retirement, ideally maintaining a mix of income-generating and conservative assets. While the average American savings provides a snapshot, personal planning ultimately determines comfort in retirement.
How Inflation and the Economy Affect Average American Savings
Inflation has been one of the biggest threats to savings in recent years. Rising prices for food, housing, and healthcare reduce purchasing power and make it harder for people to save.
Even those who diligently set aside money may find their savings worth less in real terms. According to the Federal Reserve, consumer prices rose by nearly 6% between 2021 and 2023, effectively erasing gains for many savers.
This is why diversifying savings — through high-yield accounts, Treasury bonds, or investment portfolios — is vital. Simply holding cash may not be enough to preserve wealth over time.
Closing the Gap — How to Improve Your Savings Regardless of Age
While comparing yourself to the average American savings can be informative, what matters most is your personal trajectory. Are you saving more this year than last? Have you automated your contributions? Are you staying consistent even with small amounts?
Experts recommend setting up automatic transfers to a high-yield savings account, cutting unnecessary expenses, and periodically reviewing your financial goals. NerdWallet and Bankrate both offer free tools to calculate savings growth and compare account options.
For those starting late, it’s not too late. Increasing contributions, delaying retirement, or reducing lifestyle inflation can make a tremendous difference.
Why the Average Doesn’t Define You
The average American savings serves as a mirror, not a measuring stick. It reflects national trends but doesn’t define individual success. Your financial journey depends on unique factors — income stability, regional cost of living, health, and personal goals.
If your savings are below average today, focus on progress instead of perfection. Building strong habits, reducing debt, and setting realistic milestones often matter more than chasing the national median.
The Bottom Line
The landscape of average American savings by age offers both sobering realities and hopeful lessons. While many struggle to save enough, millions are taking small steps toward greater financial stability — and that’s what truly counts.
By understanding how savings evolve across life stages and using data from trusted sources like the Federal Reserve, Vanguard, and Bankrate, you can make informed choices to strengthen your own financial future.
Remember: your goal isn’t just to match the average American savings — it’s to exceed it, one consistent step at a time. Whether you’re saving $50 or $500 a month, what matters is building momentum toward security and peace of mind.
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