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

When it comes to retirement savings, most Americans are not where they need to be. Many carry dangerously small balances that put them at genuine risk of running out of money in their later years. The shortfall is not marginal. For millions of households, the gap between what they have saved and what a comfortable retirement actually requires is enormous, and it keeps widening as the cost of living climbs.

Northwestern Mutual’s 2026 Planning and Progress Study found that Americans now believe they need $1.46 million to retire comfortably, a figure that is up more than 15% from the $1.26 million recorded in 2025 and matches the record-high set in 2024. Of the adults surveyed, 46% said they do not expect to be financially prepared when retirement arrives, and 48% believe it is at least somewhat likely they will outlive their savings entirely. The Schroders 2026 U.S. Retirement Survey, which covers workplace retirement plan participants, puts the average savings target lower at $1.2 million, yet 51% of those participants still expect to have less than $500,000 saved by the time they retire, including 24% who anticipate accumulating less than $250,000. Meanwhile, 81% of plan participants say they are at least slightly worried about running out of money, and 69% believe rising healthcare, utility, insurance, and housing costs have put a secure retirement out of reach for their generation. The typical American household is nowhere close to any of those targets.

Median retirement account balances by age

The most recent Federal Reserve Survey of Consumer Finances (2022, the latest available) puts median retirement account balances by age group at the following levels:

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

Average balances run significantly higher across every age group, because a small number of wealthy households pull the mean far above what most families actually hold. The median, sitting at the exact midpoint of the distribution, delivers a more honest picture. Equally telling is what the data leaves out: a substantial share of non-retired Americans have no retirement savings at all, which means even the median figure reflects only those who have managed to save something. The Federal Reserve began collecting its 2025 Survey of Consumer Finances in early 2025, with results expected later in 2026, but the 2022 data remains the authoritative published benchmark for now.

The reality those median figures reveal is sobering, especially for people already in retirement or within a few years of it. Using the common 4% withdrawal rule as a guide, someone in the 75-and-older group could draw only about $5,200 per year from their retirement account alone, while the typical 65-to-74-year-old would generate roughly $8,000 annually. Neither figure comes close to covering basic living expenses on its own. The Schroders survey underscores the lived experience behind those numbers: among retirees surveyed in 2026, 58% said they do not know how long their retirement savings will last, and 49% reported that their expenses in retirement have been higher than they expected.

Social Security fills part of the gap. As of July 2026, the average monthly retirement benefit reached $2,085.98 according to the Social Security Administration’s July Monthly Statistical Snapshot, which translates to roughly $25,000 per year. Combined with a median account withdrawal, many retirees are looking at total income well below $35,000 annually. That level leaves little room for healthcare, housing, or any lifestyle flexibility. The picture is even bleaker for those who claimed benefits early: claiming at 62 permanently reduces monthly benefits by up to 30% compared with waiting until full retirement age. Conversely, delaying benefits to age 70 boosts the monthly check by roughly 24%.

What amount should you have invested?

Since most Americans have saved too little, the natural follow-up question is: how much is actually enough? Several widely used rules of thumb offer benchmarks tied to multiples of your annual salary:

• One times your salary saved by age 30
• Two times your salary saved by age 35
• Three times your salary saved by age 40
• Four times your salary saved by age 45
• Six times your salary saved by age 50
• Seven times your salary saved by age 55
• Eight times your salary saved by age 60
• Ten times your salary saved by age 67

These benchmarks are a useful starting point, but they cannot account for personal circumstances. A physician finishing residency in their early 30s may have just landed a high salary without having had years to accumulate savings. Someone who planned for early retirement at 45 and sits at four times salary is technically “on track” by the standard measure but well short of their actual goal. The Schroders 2026 survey makes the challenge concrete: only 30% of workplace retirement plan participants believe they will reach $1 million before retiring, while 33% currently carry more credit card debt than retirement savings. A separate Thrivent 2026 Retirement Expectations Survey found that 47% of nonretirees are skeptical they will ever be able to fully retire at all. One reality that most benchmarks rarely capture comes from Transamerica’s 2025 research, which shows the median actual retirement age among retirees is 62, often because of health setbacks or job loss rather than choice. Planning to work until 67 is not a guaranteed option for most people.

The most reliable approach is to set a target retirement date and a target annual income, then work backward from there. Ten times your final salary is a reasonable planning target for a typical retirement. Northwestern Mutual’s survey data reinforces the stakes: on average, Americans who retire at 65 face a retirement that could last 30 years or more, which means an undersized nest egg carries compounding consequences over a very long horizon. The free calculators at Investor.gov let you model exactly how much to set aside each month to hit your number, accounting for investment returns, time horizon, and expected expenses.

What if you’re behind on investing?

Falling behind is discouraging, but it is rarely a permanent condition. The most powerful moves available to most people are also the most straightforward: earn more, spend less, and automate contributions so money flows into a tax-advantaged account before it can be spent elsewhere. An appropriate asset allocation, tilted toward growth in earlier decades and stability as retirement approaches, helps those contributions compound more effectively over time. The Schroders survey found that 55% of plan participants are unable to save even 10% of their paycheck toward retirement because of competing expenses, which is precisely why automation and contribution discipline matter so much.

The tax code offers meaningful help to those who are catching up. For 2026, the standard 401(k) contribution limit is $24,500, up from $23,500 in 2025. Workers age 50 and older can add an $8,000 catch-up contribution on top of that, bringing their annual ceiling to $32,500. Those between ages 60 and 63 qualify for a larger “super catch-up” of $11,250 under the SECURE 2.0 Act, for a total annual limit of $35,750. One significant development effective in 2026: workers who earned more than $150,000 in FICA wages in 2025 are now required to make their catch-up contributions on a Roth (after-tax) basis, so confirming that your plan offers a Roth option is worth doing if you fall into that group. Taking full advantage of these provisions can make a meaningful dent in a savings shortfall over just a few years.

A financial advisor can build a personalized plan that maps your current balances, expected Social Security benefit, and savings capacity onto a realistic retirement timeline. If large changes to your situation are needed, that kind of structured roadmap makes the path far clearer than any rule of thumb can provide on its own.

Editor’s note: The average monthly Social Security retirement benefit figure has been updated to $2,085.98 based on the SSA’s July 2026 Monthly Statistical Snapshot. This revision also adds Schroders 2026 retiree survey findings that 58% of retirees do not know how long their savings will last and 49% say retirement expenses have exceeded expectations, as well as the Thrivent 2026 Retirement Expectations Survey result that 47% of nonretirees doubt they will ever fully retire. The Northwestern Mutual $1.46 million target has been contextualized as matching the 2024 record-high rather than setting a new one.

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