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What Are the Average Retirement Savings by Age?
How do your retirement savings measure up to those of peers in your age group? Read on to learn more about retirement savings by age. We’ll consult 2018 data from the Bureau of Labor Statistics and 2017 data from the Transamerica Center for Retirement Studies. These are basic averages and don’t translate into hard-and-fast rules for where you should be right now with your retirement savings. These numbers are just for an entertaining comparison.
Spoiler alert— most people aren’t saving enough money. Period.
Earners in their mid 20’s have generally saved somewhere between $15,000-20,000 toward their retirement. While this may seem like a lot, it’s really just a drop in the bucket. If you’re in this age group, the best thing you can do right now is pay off your debt and stay debt-free. Debt is the number one reason people fail to save enough for retirement.
If you’re in your early 30’s, chances are, your peers have saved about $32,000 on average toward their retirement. Saving at this age can be tough when most people are working hard to grow career and family, but this is actually an opportunity to slow down your spending and really focus on making the next 20 years of your life less stressful by contributing more to your retirement.
By the time you’ve reached your early 40’s, your peers’ nest eggs are reaching the $50,000 mark. Still, this is somewhere around just one year’s salary depending on your profession. If this is you, now is the time to get serious about your retirement savings plan.
People in their early 50’s have saved an average of $81,000 in retirement funds. Given that the recommended average retirement nest egg should be about $1 million, you’re probably less than 10% to goal at this point, with only 15 more years to work.
Most people reach their 60’s have saved close to $165,000, but should be much closer to the $1 million mark. Getting there isn’t impossible, but the more debt and obligation you have in your life, the harder it will be to achieve your savings goals. The more you can afford to save, the more you can save for the future. In order to have a comfortable retirement, the first order of business is to eliminate debt from your budget. If you’re having a hard time managing and paying your debts, Call CreditGUARD Today to learn how to get your finances back on track as quickly as possible using our proven debt management plans. Your future is waiting!