Average Retirement Savings by Age, According to the Fed: Under 35 ($48,400), 35–44 ($182,400), 45–54 ($415,800), 55–64 ($670,200)

The Federal Reserve's 2025 Survey of Consumer Finances reveals significant insights into retirement savings across different age groups in the United States. According to the data, individuals under the age of 35 have an average retirement savings of $48,400. This figure increases significantly with age, reaching $182,400 for those aged 35 to 44, $415,800 for individuals between 45 and 54, and peaking at $670,200 for those aged 55 to 64.

It is important to note that these averages do not reflect the entire population, as they exclude approximately 35% of families who do not have any retirement accounts. Consequently, the reported averages are likely higher than what would be seen if all households were included in the calculation.

Fidelity Investments offers a different perspective on retirement savings goals, suggesting that individuals aim to save an amount equivalent to one times their salary by age 30, three times their salary by age 40, six times by age 50, and eight times by age 60. This approach provides a more personalized benchmark compared to the broader averages presented by the Federal Reserve.

The Fed's comprehensive report, entitled "Changes in U.S. Family Finances from 2022 to 2025," serves as a crucial resource for understanding how much American families are saving for retirement at various stages of their working lives. The data illustrates a clear trend: as individuals age, their retirement savings tend to increase significantly. This pattern is largely due to the compounding effect of contributions, employer matches, and market gains, which builds a larger financial base over each decade.

However, it is essential to recognize that these averages are calculated solely from families that possess an individual retirement account (IRA) or a defined contribution plan, such as a 401(k) or 403(b). Families without any retirement accounts are not included in these figures, meaning the averages pertain only to those who are actively saving for retirement. If all households were considered, including those with no retirement savings, the average amounts would likely be lower.

The group of families without retirement accounts is substantial. The Federal Reserve's analysis is limited to families whose reference person is 64 years old or younger, which encompasses households that are generally still in the workforce and have not yet retired. Within this demographic, participation in retirement plans stood at 65.1% in 2025, a slight increase from 64.4% in 2022. This figure is broader than the averages mentioned earlier, as it also includes traditional pension plans.

As individuals plan for their retirement, it is crucial to avoid common mistakes that could jeopardize their savings. Many investors make critical errors, such as being overly conservative, taking large risks on seemingly guaranteed investments, or incurring high fees. Such missteps can pose significant threats to retirement savings built over years of hard work.

To help navigate these challenges, resources are available that outline common retirement pitfalls and offer strategies for avoiding them. Fisher Investments provides a guide titled "13 Retirement Mistakes and How to Avoid Them," which aims to educate investors on potential errors and empower them to make informed financial decisions as they prepare for retirement.