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How much money will you need to retire, how much does the average person have saved, and what does your future look like?
2025 Northwestern Mutual planning and progress The study found that Americans think they will need $1.26 million to retire comfortably, but most are not on track to save enough and more than half expect to outlive their savings.
No single number is right for everyone, and the same dollar amount can buy two different retirements depending on variables like your health, location, lifestyle and retirement age. However, it may be useful to check how much average people actually save, rather than what they expect, to see how much your savings are.
Estimating retirement savings is an inexact science
Fidelity qualifies its data reports by noting the challenges of estimating average retirement savings. That’s because many people contribute at least some portion of their savings to vehicles and investments that aren’t specifically designed for retirement planning, such as 401(k)s and IRAs.
I Asked ChatGPT to Plan a $200,000/Year Retirement Budget – What It Said
they include:
With this in mind, the average values of 401(k)s, IRAs and other retirement-specific accounts provide valuable information about how your savings compare to the typical American.
Average nest egg by age and generation
Your place in your financial journey plays the biggest role in the size of your savings. Recent data from two industry giants shows how average retirement savings vary by age.
financial services company empowermentwhich has $1.8 trillion in assets under administration, reports the following decade-based data on retirement savings in the U.S.
Note that the average is much lower than the overall average. Since a small percentage of ultra-high-net-worth savers may artificially inflate the average, the average – or middle number – may provide a more realistic benchmark.
| decade | average retirement savings | average retirement savings |
| 20s | $115,162 | $36,812 |
| 30s | $249,774 | $91,128 |
| 40 | $545,424 | $213,645 |
| 50’s | $970,570 | $441,611 |
| 60 | $1,148,441 | $539,068 |
| 70’s | $994,140 | $432,043 |
| 80’s | $787,424 | $326,960 |
The following is from generation-based data LoyaltyWhich manages $16.4 trillion assets under administration. Note that the combined average of IRAs and 401(k)s roughly aligns with the average savings cited by Empower in the respective decade of each generation over age 30.
| Generation (age range) | Average 401(k) Balance | Average IRA Balance |
| Gen Z (13-28) | $13,500 | $6,672 |
| Millennials (29-44) | $67,300 | $25,109 |
| Gen | $192,300 | $103,952 |
| Baby Boomers (61-79) | $249,300 | $257,002 |