Most Americans Are Behind on Retirement Funds. Here’s an Age-Reliable Benchmark.

Quick Learning

• Median retirement account balances are dangerously low across all age groups, with those aged 65-74 having just $200,000 on average, which yields just $8,000 a year under the 4% withdrawal rule.

• Not having enough money for retirement can leave many seniors dependent on an average annual Social Security benefit of $24,852.

• Americans should aim to save 10 times their income for retirement, and those who fall short should increase their incomes, turn savings into tax-advantaged plans, increase asset allocation, and cut spending to get back on track.

• An analyst who called NVIDIA in 2010 recently named his top 10 AI stocks. Get them here for FREE.

When it comes to saving for retirement, most Americans are sadly nowhere near where they should be. In fact, many Americans have dangerously small balances that put them at risk of running out of money in their later years.

Let’s look at that Americans actually saved to see how you compare to others in your age range. We’ll also look at how much income these accounts will provide, and what you can do if your accounts fail.

The analyst who called NVIDIA in 2010 recently named his top 10 stocks. Get them here for FREE.

Average retirement account balance by age

According to the latest version of the Federal Reserve’s Survey of Consumer Finances, here are the average account balances by year:

• 35-44: $45,000

• 45-54: $115,000

• 55-64: $185,000

• 65-74: $200,000

• 75+: $130,000

Although the average balances are very high, those are skewed higher by people with large incomes, net worth, and a ton of money paid in their golden years.

The sad truth is that these funds are very small, especially for those who have retired or are approaching their retirement age. In fact, if you follow the standard 4% withdrawal rule, those 75 and older will be able to withdraw just $5,200 from their retirement account each year, while those 65 to 70 years old will take in $8,000.

Now, this probably won’t be for you the sole source of income. You will likely claim Social Security benefits as well. Unfortunately, the average monthly benefit from Social Security was $2,071 in early 2026. That means retirement benefits provide an average of $24,852 a year for the typical retiree.

So, unless you’re comfortable living on less than $35K a year in gross income, you’ll need larger-than-average accounts to get comfortable in your later years.

How much money should you have invested?

Since Americans have saved so little, the logical question is: How much is enough?

There are several rules of thumb that should help you figure that out. For example, you may have heard that you need to be:

• One time your salary is 30

• Double your income save 35

• Triple your income and save 40

• Quadruple your income at 45

• Six times your salary at 50

• Multiply your income by 55

• Eight times your salary at 60

• Ten times your salary at age 67 when you retire

However, this does not take into account your personal situation or goals. For example, if you’re a young doctor who just got a residency, you may have just landed a high-paying job. but he did not have enough time to accumulate a nest egg equal to a full year’s worth of income. On the other hand, if you’re hoping to retire early at age 45 and quadruple your income by age 44, you’re “on track” on paper but you’re some way from achieving your specific goal.

Ultimately, your best option is to set a target retirement date and target income (10 times your salary on that date is reasonable) and use the statistics you’ll find on Investor.gov to figure it out. directly the money you need to invest to make your dream come true.

What if you are behind on investing?

If you’re behind on investing, the best thing you can do is let that motivate you. Commit to:

• Trying to increase your income

• Automatic investing to automatically put your money into a tax-advantaged retirement plan every month

• Investing in the right mix of assets

• Working to reduce spending increases the amount you can invest

If you try to earn more, save more, and invest more, you should be able to get back into good shape. A promising advisor can also help you come up with a personalized plan that puts your retirement goals within reach.

The analyst who called NVIDIA in 2010 recently named his top 10 AI stocks

This analyst’s 2025 pick is up 106% on average. He recently named his top 10 stocks to buy in 2026. Get them here for FREE.