In 2022, the average amount saved in retirement accounts by Americans was reported to be $87,000, as revealed by the recent Survey of Consumer Finances from the Federal Reserve. Nonetheless, this amount shows considerable disparities across various age demographics. Individuals under 35 possess significantly lower median retirement account values.
This figure progressively rises with age, reaching its peak for those aged between 65 and 74, before experiencing a downturn as retirees start to withdraw funds. Beyond retirement accounts, the survey also examined other investment forms. Approximately 7% of respondents held assets in certificates of deposit, with an average balance of $26,000.
Only 1% of the participants owned bonds, yet those who did had a median investment value of $211,000.
Retirement savings across different age brackets
Stocks were held by a more considerable portion, with 21% indicating ownership.
The median stock investment across all households amounted to $15,000. Pooled investment options, which include both bond and stock funds, were owned by 12% of respondents, with a median investment value of $150,000.
Though some individuals may feel disheartened by their current savings in comparison to these statistics, it is crucial to recognize that there is always time to enhance retirement savings. Incremental increases in contributions can lead to substantial growth over time, thanks to the benefits of compound interest. Those who find themselves lagging in their retirement savings might contemplate strategies such as maximizing their employer’s 401(k) matching contributions, engaging in part-time work to supplement their income, and ensuring their investment distribution aligns with their age and risk preferences.
With commitment and perseverance, almost anyone can elevate their financial situation and boost their likelihood of enjoying a secure retirement.
