Gabe Fransen | March 19, 2025
As financial advisors, we help clients navigate retirement savings options: 401(k)s, 403(b)s, IRAs, Roth IRA’s and/or brokerage accounts. Each path offers unique considerations, and we’re here to help clarify what might work best for our clients. Empower, which is one of the largest 401k recordkeepers in the US, data reveals 70% of Americans contribute to a retirement plan—47% of Gen Z (born between 1997 and 2012), 75% of Millennials (born between 1981 and 1996), and 76% of Gen X (born between 1965 and 1980)—showing varied starting points across generations.
A question we often hear is, “How do my savings stack up?” It’s a practical way to assess progress. According to Empower data (as of December 31, 2024), the average retirement balance is $492,795, with those over 60 holding the largest sums. Here’s how it breaks down by age:
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20s: Avg: $108,941 | Med: $33,537
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30s: Avg: $239,962 | Med: $90,810
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40s: Avg: $530,031 | Med: $217,005
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50s: Avg: $964,107 | Med: $456,712
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60s: Avg: $1,180,022 | Med: $590,777
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70s: Avg: $1,058,786 | Med: $504,154
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80s: Avg: $826,250 | Med: $371,897
The gap between averages and medians highlights how a few high balances skew the average; the median better reflects typical savings.
Breaking it down by age:
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20s: Starting early taps into compounding’s potential over decades.
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30s: Avg $239,962, med $90,810; Empower notes 60% of Millennials have about $500 for emergencies—a reminder to balance priorities.
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40s: Avg $530,031, med $217,005; annual limits are $23,500 (401(k)) and $7,000 (IRA).
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50s: Avg $964,107, med $456,712; over 50s can add additional $1,000 (IRA) or $7,500 (401(k)/403(b)) above the standard annual limits.
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60s: Avg $1,180,022, med $590,777; Social Security begins at 62, with reduced benefits. Benefits increase up to age 70.
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70s: Avg $1,058,786, med $504,154; 58% consider working longer, per Empower, for financial or personal reasons.
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80s: Avg $826,250, med $371,897; legacy planning often takes center stage.
These numbers offer a benchmark, but your retirement hinges on personal factors—your income, current savings, goals, target retirement age, and health outlook. Adopting a personalized and carefully thought out approach to your retirement planning can assist in evaluating whether the savings you’re setting aside today align with the specific lifestyle you envision for your retirement years. We believe there’s no one-size-fits-all benchmark for how much money you’ll need for retirement, so we feel putting together a personalized retirement plan may be beneficial. You may want to consider:
- Financial status:
- What is your current and future income?
- How much do you have in savings and retirement accounts?
- How much equity do you have in your home?
- Do you have any outstanding debt?
- Current contributions:
- How much are you currently contributing towards your retirement savings?
- Do you have access to a 401(k) plan? Does the 401(k) plan have a Roth provision?
- Are you taking full advantage of employer 401(k) match, if available?
- Are you spreading out your retirement savings into different tax classifications
- Desired lifestyle in retirement:
- Do you plan maintain your current lifestyle in retirement?
- Do you want to travel frequently in retirement?
- Do you a bucket list of items that you want to do in retirement?
- Where do you want to live?
- Expected retirement age:
- When do you hope to retire? Do you plan on other income after retirement like a part time job or hobbies that generate income?
- Are you comfortable that your current financial plan will get you there?
- Health and life expectancy:
- What kind of healthcare costs might you encounter? Does your financial plan support worst case scenario’s?
- Will you have enough money to last through your lifetime?
Data sourced from Empower’s Article dated 1/17/2025. Retrieved March 19, 2025, from: https://www.empower.com/the-currency/money/average-retirement-savings-by-age.
3rd Party disclosure: Content was prepared by a third-party, unaffiliated provider and is not the product of the adviser or Royal Fund Management LLC, and should not be regarded as a complete analysis of the subjects discussed. Language used by the third-party that appears promissory should be considered as mere marketing hype or hyperbole and the reader is reminded that there can be no guarantees or assurances or any particular outcome. Although we believe the content is reliable, it is not guaranteed as to accuracy and is not intended to be the primary basis for investment decisions. All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. All information and ideas should be discussed in detail with your Investment Adviser Representative prior to implementation.