Average Savings by Age 25

While the Federal Reserve doesn’t provide specific data for individuals in their 20s, those under 35 have a median of $5,400 and an average of $20,540 saved in transaction accounts. If you’re in your 20s, you may have less than those numbers, especially if you’ve just graduated from college and entered the workforce.

Although it’s not uncommon to have little savings in your 20s, this is the time to develop healthy financial habits that open up opportunities for your future self. Be sure to start contributing to investment accounts if you can to take advantage of the benefits of compound interest, which allows you to earn interest on interest and grow your money over time.

Tips for saving money in your 20s:

• Build an emergency fund: Most financial professionals agree that you should aim to save enough to cover three to six months of expenses.
• Start saving for retirement: Experts recommend that individuals in their 20s invest 15% of their pretax income in a 401(k) or similar retirement account.
• Prioritize paying off debt: Get ahead of paying off debt to avoid incurring high amounts of interest.
• Consider your lifestyle goals: While some people dream of owning a house, others prefer to rent. Take this time to consider your future goals and how you prefer to spend your money.

Average Savings by Age 30

As mentioned above, the median account balance among those under 35 is $5,400, and the average balance is $20,540.

By this age, you may have been working for a few years, receiving salary increases that allow you to increase your savings. However, you may also have more expenses than you did previously, especially if you have fallen victim to “lifestyle creep”—a phenomenon that involves increasing your spending as your income increases.

Tips for saving money in your 30s:

• Aim to have one year’s salary in savings: Many financial experts recommend having one year’s salary saved by the time you’re 30. Since this is a difficult goal to achieve for most, you may also consider working toward it during your 30s.
• Take steps to avoid lifestyle creep: Set positive financial habits like sticking to a budget, paying yourself first, and avoiding impulse buying to prevent lifestyle creep.
• Increase your emergency fund: As your expenses increase, be sure you are maintaining three to six months of expenses in your emergency fund.
• Diversify your investments: Consider investing in various stocks and bonds to diversify your investment portfolio. If you’re not sure what you’re doing with investing, you may consider working with an accredited financial advisor.

Average Savings by Age 40

Individuals ages 35 to 44 have a median of $7,500 and an average of $41,540 in transaction accounts.

For most Americans, your 40s are when you reach peak earning potential. At the same time, however, expenses may start to rise, especially if you’re making payments on a home or supporting a family. Saving money during this period is crucial if you wish to retire on time.

Tips for saving money in your 40s:

• Pay off all credit card debt: By the time you reach age 40, aim to pay off your credit card balances.
• Consider financial planning: You may choose to hire a financial planner who can help you develop a plan to reach your financial goals.
• Increase your retirement savings: If you plan to retire in your 60s, your 40s are the midway point, so it’s important to make sure you’re on track and ramp up your savings if needed.
• Re-evaluate your future goals: Your 40s are the perfect time to reevaluate your goals. Whether you want to buy a house, fund a renovation, or retire early, you’ll need to plan for those milestones.

Average Savings by Age 50

Americans ages 45 to 54 have an average of $71,130 and a median of $8,700 in savings.

At age 50, you may begin to feel more financially comfortable. With retirement approaching in the next decade or so, now is the time to ramp up savings and pay off all debt. Consider maxing out your retirement contributions every year to boost your savings.

Tips for saving money in your 50s:

• Cut down on spending: You may have more money on hand in your 50s, especially if your kids are out of the house. Take this opportunity to save more and spend less.
• Max out your retirement contributions: When you hit 50, you can now contribute up to $7,500 to an IRA or $7,500 more above the normal contribution limit to a 401(k).
• Pay off your mortgage: Prioritize paying off your mortgage and becoming completely debt-free.
• Iron out your retirement plans: While you may have already been preparing for retirement in the past couple of decades, your 50s are the time to create a concrete plan of exactly when you aim to retire.

Average Savings by Age 65

Individuals ages 55 to 64 have an average of $8,000 and a median of $72,520 in savings. Meanwhile, those between the ages of 65 and 74 have an average of $100,250 and a median of $13,400 saved. Finally, those ages 75 or older have an average of $82,800 and a median of $10,000 in transaction accounts.

By age 60, you may be nearing retirement. During retirement, managing your finances may look different as your focus shifts from growing your finances to saving them. Although you definitely want to enjoy your retirement, it’s also important to stick to a budget to make sure your funds last.

Tips for saving money in your 60s:

• Consider lowering your cost of living: Whether it’s downsizing your home or selling a vehicle, there are lifestyle changes you can make to reduce your spending.
• Look into relocating to a tax-friendly state: Residing in a tax-friendly state with a lower cost of living can save you thousands of dollars throughout retirement.
• Take advantage of senior discounts: Many companies offer senior discounts that can help stretch your budget during retirement.
• Delay collecting Social Security benefits: Keep in mind that your benefit increases each year that you delay collecting Social Security until age 70.

Average Retirement Savings by Age

In addition to saving money in transactional accounts, it’s also important to save specifically for retirement. The following chart outlines how much the average American has in retirement savings organized by age. As you can see, retirement savings grow with age and then seem to plateau around age 55 to 64. This is likely due to the fact that the average retirement age among retirees is 62, according to Gallup research.

By looking at this chart, you can get a sense of if you’re on track with your retirement goals.