Most Americans Are Behind on Retirement Savings. Here Is the Honest Benchmark by Age.

When it comes to retirement savings, most Americans are sadly not where they should be. In fact, many Americans have dangerously small balances that put them at risk of running short of funds in their later years.

Let’s take a look at what Americans actually have saved so you can see how you compare to others in your age range. We’ll also look at how much income these accounts will likely provide, and what you can do if your accounts are falling short. 

Median retirement account balances by age

According to the most recent version of the Federal Reserve’s Survey of Consumer Finances, here are the median account balances by age:

• 35-44: $45,000
• 45-54: $115,000
• 55-64: $185,000
• 65-74: $200,000
• 75+: $130,000

While the average balances are significantly higher, those are skewed upward by people who have large incomes, substantial net worths, and a ton of money socked away for their golden years. 

The sad reality is that these amounts are just too little, especially for those already in retirement or nearing their traditional retirement age. In fact, if you follow the common 4% rule for withdrawals, those who are 75 and up would be able to take just $5,200 out of their retirement account each year, while the typical 65 to 70-year-old would generate an income of $8,000.

Now, this isn’t probably going to be your sole income source. You’ll likely claim Social Security benefits as well. Unfortunately, the average monthly benefit from Social Security was $2,071 at the start of 2026. That means retirement benefits provide an average of $24,852 per year to the typical retiree.

So, unless you’re comfortable living on less than $35K a year in combined income,  you’re going to need larger-than-average accounts to be comfortable in your later years. 

What amount should you have invested?

Since Americans have saved too little, the logical question is: How much is enough?

There are a lot of rules of thumb that are supposed to help you figure that out. For example, you’ve probably heard that you need to have:

• One times your salary at 30
• Double your salary saved at 35
• Three times your salary saved at 40
• Four times your salary at 45
• Six times your salary at 50
• Seven times your salary at 55
• Eight times your salary at 60
• Ten times your salary at 67 when you retire

However, this doesn’t take your personal situation or goals into account. For example, if you’re a young doctor fresh out of residency, you may have just gotten a job with a big salary but not had anywhere near enough time to amass a nest egg equal to a full year of income. On the flip side, if you’d hoped for early retirement at 45 and you’re 44 with four times your salary, you’re “on track” on paper but way off for your specific goal.

Ultimately, your best option is to set a retirement target date and target income (10 times your salary at that date is reasonable) and then use the calculators you’ll find at Investor.gov to see specifically the amount you need to invest to achieve your dream.

What if you’re behind on investing?

If you’re behind on investing, the best thing you can do is to let that motivate you. Commit to:

• Trying to increase your income
• Automating investing so you’re putting your money away into a tax-advantaged retirement plan each month automatically
• Investing in an appropriate mix of assets
• Working to reduce spending to increase the amount you can invest

If you try to earn more, save more, and invest more, you should be able to get back on track. A fiancnial advisor can also help you come up with a personalized plan that puts your retirement goals within reach.