Are Your Retirement Savings Below Average for Your Age? Here's the Latest Data.

If you are trying to save enough money for your retirement, it is important to have some benchmarks to track your progress. Since money is often a contentious topic, the best option is to obtain statistics from sources that have access to a wealth of anonymous information, such as the federal government and the large discount broker Fidelity Investments.

Here are key metrics that will help you determine if your retirement savings are below average for your age, and an even better rule of thumb to use.

The big picture first

Retirement savings are just one part of your financial picture. They are an important part, but there are reasons you might decide to focus on other things. For example, buying a home could take precedence over building up your 401(k) if you have a family. That's not a waste of money; you are building home equity as you pay down your mortgage.

Image source: Getty Images.

In fact, some people view buying a home as a form of forced savings. Every time you pay your mortgage, you are adding to your net worth, which is basically all of your assets minus all of your liabilities. You may have a negative net worth early in your life, due to factors such as buying a home, as homes typically come with large mortgages. Still, it's essential to start with your net worth when assessing your financial standing.

The U.S. government puts together a report called The Survey of Consumer Finances. The latest data is from 2022, which is a few years old but still worth examining.

Data Source: U.S. Federal Reserve.

There are two different averages shown, the mean and the median. Note the huge difference between the two figures. This is because the mean is a simple average, whereas the median is the middle point of the dataset. A mean can be skewed higher by a small number of wealthy people. Most people should target the median.

What about retirement savings?

Net worth is everything you own, including things like your home, cars, collectables, and the like. It is the big picture of where you stand financially.

To help you focus on your retirement savings, Fidelity reviewed its 401(k) and individual retirement accounts (IRAs) at the end of 2024 to create averages for retirement savings. By generation, the breakdown is as follows.

Data source: Fidelity Investments.

Fidelity specifies that these are averages, which suggests that the figures are likely skewed high (remember the mean versus median issue in the government data). However, they still provide a target for investors to aim at, even if it is on the high side. Aiming high isn't a bad thing when it comes to preparing for retirement.

That said, the more interesting information offered by Fidelity is the savings targets it provided along with the above data.

Data Source: Fidelity Investments.

This table of rough targets is more useful because it allows for differences in income. It's simple: If you are 45, your target should be to have four times your annual income saved for retirement. If you are 30, that target is just a multiple of one.

Choose your targets wisely

Every person is different, making it challenging to accurately assess your financial standing based solely on dollar figures. Factors such as an adverse life event or a job that is emotionally rewarding but not financially lucrative can change your situation dramatically. Take the averages above with a grain of salt and be kind to yourself.

What's probably more useful is Fidelity's salary targets, which provide room for individuality without the stigma of a dollar figure. Broad targets are less precise, but they keep you on track without the emotional baggage that can come with comparing yourself to other people.