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News - Average Retirement Savings By Age

11 March 2006 25 Comments

Below is a table about the average retirement savings by age. I think this statistic can be a personal finance reference.

Age

All

25-34

35-44

45-54

55+

Less than $25,000

52%

70%

50%

41%

39%

$25,000

13%

12%

15%

14%

12%

$50,000

11%

9%

14%

13%

7%

$100,000

12%

5%

10%

17%

23%

$250,000

11%

4%

10%

16%

19%

Source : Fool.com

Via : Richdad.com

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25 Comments »

  • Carnival of Finance at Okdork.com said:

    [...] Other: Do your Taxes in 7 days, How would $3 gas change what you do?, The Relative Costs of Self-Care, Tax tips for unmarried families, Moving Sale Results, The Week Ahead, Investing in Collectables, Microsoft Money 2006 Tax Estimator, Two Months Salary?, What do you want to give your children?, What Options do you have with your money?, Retirement savings by age, IRAs and HSAs, Friday’s Fabulous Financial, Trust me, we are not poor, Poor No More, Tips for paying taxes with an irs loan, DIY = N/G, Loan Rate Sheets Example, Stop complaining about your finance, Share buyback and dividends, Gold, Ask Uncle Bill, Note to Self about Fluctuations, Stop Selling your Name, Spend more with.., Articles that don’t help, It’s Just Money, The Art of War Newsletter, Boomers Failing…, Control your spending. [...]

    # 4 April 2006 at 2:48 am
  • Carnival of Finance at Okdork.com said:

    [...] Other: Do your Taxes in 7 days, How would $3 gas change what you do?, The Relative Costs of Self-Care, Tax tips for unmarried families, Moving Sale Results, The Week Ahead, Investing in Collectables, Microsoft Money 2006 Tax Estimator, Two Months Salary?, What do you want to give your children?, What Options do you have with your money?, Retirement savings by age, IRAs and HSAs, Friday’s Fabulous Financial, Trust me, we are not poor, Poor No More, Tips for paying taxes with an irs loan, DIY = N/G, Loan Rate Sheets Example, Stop complaining about your finance, Share buyback and dividends, Gold, Ask Uncle Bill, Note to Self about Fluctuations, Stop Selling your Name, Spend more with.., Articles that don’t help, It’s Just Money, The Art of War Newsletter, Boomers Failing…, Control your spending. [...]

    # 4 April 2006 at 2:48 am
  • claire said:

    Let’s see, I’m 29 and I have about 40K in retirement savings.

    I’m in the top 12% for my age.

    That’s actually really sad.

    # 4 April 2006 at 3:48 am
  • harrison (author) said:

    Claire, you are considered as the lucky one since over 70% have saving less than $25000 and I think most of them is 0 saving but thousands of debt.

    # 4 April 2006 at 7:56 am
  • JiggaDigga said:

    Great reading, keep up the great posts.
    Peace, JiggaDigga

    # 8 April 2006 at 11:33 am
  • Jorja said:

    hi, i’m 35 and have 100,000 in retirement investment accounts. can you tell me what percentage i’m in for 35-year-olds? i wanted to know a more specific percentage for my age, and not just 35-44 year olds. thanks!

    # 27 April 2006 at 12:55 am
  • harrison (author) said:

    Hi Jorja, thanks for your question. I think you are doing quite well in your retirement investment account. according to the statistic, only 10% of people is like you!

    I found the statistic chart from Richdad.com and according to them, it is from fool.com. However, as I know the percentage is just given based on the range of age. Anyway I will try my best to search for the information that you want, if I have the results, I will post here for your reference.

    # 27 April 2006 at 8:13 am
  • Tom said:

    Hi, Jorja - Don’t despair. When I was divorced in 1993, I walked away with only about $100,000. Through prudent financial planning (which could have been lots better), and by limiting my lifestyle to not have everything everyone else did, I retired last year at age 61 with over $1,200,000 in net worth. The keys were saving from payroll deduction so I never saw it, limiting my life-style cost so that I’m used to the same now, not going into debt (except for mortgage), paying off credit cards every month, maxing out company-matching contributions, and increasing my mortgage payments, etc. by at least the percentage of my raises when they happened. Can’t do it? Imagine what people do who make 20% less than you, and stick that difference in the bank. Once you get used to it, you’ll get more pleasure out of that steadily growing nest egg than you’ll lose from not having the latest gadgets. Good luck!

    # 4 May 2006 at 9:03 am
  • Tom said:

    P.S. To save you doing the math, I was 50 when I retired… 15 years older than you are now. What counts is what kind of life style you want when you retire (and how much it co$t$). Best figure that out now, and be realistic… set your goals, make a plan, and keep driving toward it. Who cares how you compare to those around you? That’s why so many are broke. All that counts is being happy with you.

    # 4 May 2006 at 9:12 am
  • harrison (author) said:

    Yup I totally agree with Tom. Nice post Tom, thanks for sharing with us your tips for retirement. For you information, I also write a short articles about Factor that we must consider for retirement.

    # 4 May 2006 at 8:46 pm
  • Will said:

    i am 33, and just hit 250,000 in my 401(k)… i do have some real-estate i own as well (not much, ~100k)… according to what i have read here, i should be feeling pretty good (sorry, really don’t mean to sound as if i am bragging - just the facts).

    But whenever i plug in numbers into an online retirement calculator, i end up barely meeting retirement requirements at 55. and before you ask - i put in $120,000 for projected annual spending after retirement (spendy but not too crazy, i think).

    Makes me wonder - are we being too conservative in how much we need to retire, or are the majority of us headed for a huge drop in living standards as we age?? At this point, it seems that i should plan to retire to south-east Asia where the living cost is a lot cheaper and the quality of life is at least as good, just to be sure i don’t spend my entire life working in order to be in a ’safe’ financial place for retirement.

    Will.

    # 7 June 2007 at 8:02 pm
  • Harrison (author) said:

    Hi Will, thanks for the comment. I agree that you are doing pretty good.

    Well, I will set higher goal for my retirement and if possible will review it every 5-10 years. If you set a goal for your retirement, do you ever think that your goal is enough at the time you retire? There are facts that our medical fees and living costs are increasing. There are many factors that is making this happen such as inflation.

    Will, you idea is good that you move to some country which is having a lower living costs. In some cases, you also can leverage on the currency rate too.

    # 8 June 2007 at 6:57 am
  • Matt said:

    Will,

    I am in a similiar situation to you - a year older and about 50K more in my retirement account. Regardless, I am always disappointed when I use the retirement calculators - much like you must be. I believe that this is because we are currently living on much less then the calculators forecast we will need in retirement - the calculators base our needs on our current gross.

    To better explain, here is my situation:
    1. I currently make 120k and another 20k in bonus (just got a big promotion so that will go up significantly within the next month ;-))
    2. I max out my 401k.
    3. I save 1K after tax to a VULA and a mutual fund (both for retirement).
    4. I save $500 a month to short-term (sometimes stock play account).
    5. My mortgage, taxes and utilities (no car payment) comes out to around $3000 a month. No wife of kids yet.
    6. My personal spending is around $1000 to $1500 a month (I live a simple life on the internet, working and/or at the gym - so, usually around 1K so I save a little more) - but, I use my bonus for cars, vacations, etc.

    So, based on what I listed above, my current lifestyle without mortgage (with taxes, utilities, gym membership, birthdays, vacations, cars, etc) ends up costing me around $4000 to $4500 a month - which is about 50 percent of my current take home is if I was not saving (I allocated my bonus over 12 months - because just salary without savings comes to around 7k after taxes). Those calculators estimate that I will need 100% where I really need 50%. Although, I am aiming for 80% of my current salary - my new increase in pay will just go to savings so I can knock another few years off of having the ability to retire or pursue a different passion if my current one fades.

    Oh yea, about bragging, if anyone posts something negative about talking about your (or my) situation and money then they are fools. Our society refuses to talk about money for some unknown reason - like it is taboo. If we were more open about money then maybe more people would have a clue about what people are doing so they may actually be able to retire in style (from an article I read - about 3% of the population can actually do that). One more thing - the only reason you and I ended up on this board is because we are being proactive - most people just go with the flow and hope it happens for them. Note: I also know that some people do not have the aptitude to go into careers so they can make decent money - and liberals can always counter with that arguement - one I do not disagree with - but, I do not have an answer on how to help those that cannot learn.

    # 23 July 2007 at 10:50 am
  • Lower Income Retire said:

    Salary of about 25K-50K over last 15 years (starting at age 18)…have 100K (about 20% annualy) saved up in 401K, IRAs, and a few CDs (the CDs are also emergency funds). Guess that isn’t bad when comparing to those of you making 150K+ :D. I’m just jealous of the 100K+ salaries ;).

    # 1 August 2007 at 3:14 am
  • Harrison (author) said:

    Hi, You really did well! Yeah, 100K+ salaries really attractive but wealth is more about how you manage your money and not how much you make ;-)

    # 1 August 2007 at 8:15 am
  • How much does the average person in their 20’s have in savings? said:

    [...] This is average retirement savings by age statistics: http://www.finandom.com/blog/2006/03/11/…; [...]

    # 2 September 2007 at 11:48 am
  • Raj said:

    Matt,
    I’m 34 have $612k net worth, $459k in cash and I’m pretty liberal on social issues LOL. I’ve made as little as $37k and as much as $174k. I agree with you on many points but keep in mind you have to have some fun along the way. It’s all about balance. People hardly remember you by how much money you had rather by what you did with it. Just food for thought.

    # 15 September 2007 at 4:57 am
  • Dave said:

    I’m 35 years old and have approximately $150K in retirement so far. My annual salary for the last 5-6 years has started around $50K/year and evolved to roughly $70K/year. Prior to that, my salary ranged from $35-45K/year since out of college at 25 yrs old (took a few years off to save/pay for college). I’ve lived a modest lifestyle - but very happy. I watch where my money goes - not like a hawk - but enough to know that my hard-earned $$ isn’t going to purchase the latest “fad” (i.e. that 60″ plasma TV that my neighbor has). What I did over the years was look for the sales (if I absolutely wanted a new “toy”), buy used cars/trucks (with 30-40k miles on them), and ALWAYS put in at least a piece, if not all of my salary increase towards my 401(k). I’ve bought my own house (6 yrs ago), always paid my credit cards on-time, and actually just bought my first brand new truck which I saved for over the last 4-5 years.

    My advice to anyone who is looking to start saving for thier retirement is : It’s never too late to start. Watch where your money goes - spending on the latest gadgets, new cars, or other toys gets costly. If you’re company has a 401(k) or 403(b) plan - elect to take part in it and get the company match if they offer one. If you don’t have those options, take advantage of the roth IRA - mentioned in other replies on this thread. Take that money that you would have spent on that 60″ plasma TV and put it to work for you. Don’t worry, the TV will come down even more in price in the near future (just like computer prices) - and you can have the guys over for football. Good luck to all.

    # 12 January 2008 at 12:35 am
  • Colorado Health Insurance Insider » Retirement And Health Care said:

    [...] recent study by Fidelity Investments estimates that a 65-year old couple retiring in 2008 will need $225,000 set aside in order to cover medical expenses during their golden years. And yet 39% of Americans over age 55 have less than $25,000 in total [...]

    # 6 March 2008 at 2:41 am
  • adam kramer said:

    i dont know…im 32……i dont have a stable job…..just hustle here and there…….i have a 70k c.d., a 10k roth i.r.a. and about 40k cash…..not a lot..i own no property, but i also have 0 debt….lots of folks seem to be doing better, but i guess ill trade that for not spending my best years of my youth slaving at someone else business….also, i have another 30k im going to travel around the world the next 3-4 years…. a huge vacation ive been waiting my whole life for. i figure i have no wife and kids and no business or great job…im young, free, have money, and all my hair.
    regardless….im trying to evaluate my situation upon my return…i will be 36 with a college degree, no real work experience….but i will have a sufficient amount of money to invest in a rental property, start a business, or do something,……worse comes to worse i got a bullshit 40k/yr job and hustle on the side until i reach my next goal….
    should i leave that 70k in a c.d. while im gone?
    if so, roll over 3-5 month c.d.s, or lock in a rate for 5 years or so??? im skeptical, as in the last 7 mos. they have dropped from 5% to 2.8 %….i dont have a lot of options, especially if i dont want to be hassling around with it while in thailand..
    also, i guess i should invest the cash somewhere…..i plan on using this as living and spending money upon my return……..
    i would hate to come back and see my 40k worth 35k because the of the dollars decline….though the euro might drop as well, it will never decline as quick as the dollar….if someone was going to bury money under their stairs for the next ten years, shouldnt they convert it into euros first???????

    # 12 April 2008 at 2:47 am
  • Denver retirees’ plight a warning to us all : Post-Ed Notes said:

    [...] plans, prudent families still have private savings. Unfortunately, according to the web site fiandom.com, 51 percent of workers 55 or older have less than $50,000 in savings, with 39 percent having less [...]

    # 2 July 2008 at 1:38 am
  • Peter said:

    I am 32 years old and have about $113,000 in retirement savings. I read I am doing more than most people my dad`s age. Hopefully it will all work out and I can retire early.

    # 7 August 2008 at 7:33 pm
  • Eddie said:

    I am 41 and have about 128k in retirements savings so I’ve done alright I guess. I’ve been saving anywhere from 6% - 10% since I was 23. This year I made 120k, but in 1991 when I started saving I was only making about 35k. I probably should max out my 401k, but I am not going to, instead, I am going to take whatever is leftover and pay down my debts until I am debt free. Everyone has a difference in philosophy, I only intend on contributing what my company matches which is up to 6%, and using the rest to pay down debt. And remember, don’t take it TOO seriously, because you can’t take it with you….

    # 23 August 2008 at 3:43 am
  • retiredebtfree01 said:

    Thank you for providing wonderful survey.After seeing this information most will try to invest their money in their younger age itself.

    Retirement Plans, Retirement Savings, Retirement Investments,Retirement Income, Retirement Funds,Home based Business

    # 10 October 2008 at 4:43 pm
  • Father Sez » Archive » My two elder girls’ net worth computations as at the end of 2008. Now it’s all up to them. said:

    [...] these are the savings statistics for Americans when they reach retirement [...]

    # 28 January 2009 at 8:30 am

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