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 short 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.
A 2026 Northwestern Mutual survey found that Americans now believe they need $1.46 million to retire comfortably, up from $1.26 million just a year earlier. A separate July 2026 survey by Schroders found that 51% of workplace retirement plan participants expect to have less than $500,000 saved by the time they retire, and 81% say they are at least slightly worried about running out of money in retirement. The typical American household is nowhere close to either target. Below is a look at what Americans actually have saved by age group, how much income those balances will realistically generate, and what steps remain available to people whose accounts are falling short.
Median retirement account balances by age
According to the most recent Federal Reserve Survey of Consumer Finances (2022, the latest available), median retirement account balances by age group are as follows:
- 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 have. The median, sitting right at the midpoint of the distribution, gives a far more honest picture. Equally telling is what the data omits: 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. A 2025 Gallup poll found that roughly 4 in 10 Americans report having no money in a retirement savings plan such as a 401(k) or IRA.
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, 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.
Social Security fills part of the gap. As of May 2026, the average monthly retirement benefit was approximately $2,083, according to the Social Security Administration’s Monthly Statistical Snapshot, which translates to just under $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 costs, 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.
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, with targets 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. Conversely, someone who planned for early retirement at 45 and sits at four times salary is technically “on track” by the standard benchmark 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. One important reality that benchmarks rarely capture is that data from Transamerica’s 2025 research shows the median actual retirement age among retirees is 62, often because of health setbacks or job loss rather than choice, which means planning to work until 67 is not a guaranteed option.
The most reliable approach is to pick a target retirement date and target income, then work backward. Ten times your final salary is a reasonable planning target for a typical retirement. The free calculators at Investor.gov let you model exactly how much you need to set aside each month to hit that 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 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 limit 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 new development for 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 it is worth confirming that your plan offers a Roth option 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: This article has been updated to incorporate the July 2026 Schroders U.S. Retirement Survey findings showing 51% of workplace plan participants expect to retire with less than $500,000 saved and 81% worry about outliving their money; the Social Security average monthly benefit has been updated to approximately $2,083 as of May 2026 per the SSA Monthly Statistical Snapshot; and the 401(k) base contribution limit for 2026 has been noted as $24,500, up from $23,500 in 2025.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks