How much do Americans save for retirement age?

On average, Americans save about $141,542 for retirement “How America Saves in 2022” The report is compiled by Vanguard, an investment firm representing more than 30 million investors.

However, most people probably have much less: The average 401(k) balance is just $35,345.

That means half the account balance is less than this amount and half is higher. And since the average can be skewed by a few outliers, the average account balance is considered more representative of what most people actually have saved in their 401(k) accounts.

Here’s how much Americans have saved for retirement, by age:

Besides age, many other factors affect retirement savings, such as income and how long an employee has worked for a company. For example, older employees who have worked longer tend to have higher account balances than employees who are just starting their careers.

But try not to completely fix your exact balance. “If you focus too much on your account balance, you may be tempted to react to short-term fluctuations that take a toll on your items,” said Nilay Gandhi, senior financial advisor at Vanguard. their long-term financial goals”.

Instead, Gandhi encouraged investors to focus on factors they can control, such as their costs, investment choices, and savings rates.

“We believe participants need to achieve a total savings ratio of 12% to 15%, including contributors,” said John James, managing director of Vanguard’s institutional investor group. labor use.

Don’t panic if you haven’t gotten there yet – most investors don’t.

Here are the average retirement savings rates for investors of all ages:

Gandhi realized that getting to the recommended retirement savings rate of 12% to 15% can be daunting for employees, especially those just starting out.

Start with what you can afford. However, “be sure to save at least enough to get the perfect match for your employer,” Gandhi recommends.

From there, “increase your savings rate from 1% to 2% each year until you reach your goal savings rate of 12% to 15%.”

Vanguard offers a Retirement Income Calculator that anyone can use to estimate how much money they might need after retirement. The tool takes into account specific individual factors, including current age, expected retirement age, current income, savings rate, expected income needs in retirement, and sources of income. additional input.

You can also watch CNBC Make It retirement planning tool that can help you calculate how much you’ll need to retire comfortably based on your age and income.

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