Do Your Retirement Savings Stack Up to the Average? Here's How Much Vanguard Says Americans Had Saved Last Year.
Investment
The Motley Fool

Do Your Retirement Savings Stack Up to the Average? Here's How Much Vanguard Says Americans Had Saved Last Year.

July 22, 2025
05:00 AM
5 min read
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From what the evidence shows, I'll always preach the importance of being active. Moreover, It could mean eating healthy and working out to avoid health blems down the road, staying...

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investment

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Published

July 22, 2025

05:00 AM

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The Motley Fool

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financemoneywealthfinancialfinancialshealthcaremarketdata analysis

From what the evidence shows, I'll always preach the importance of being active

Moreover, It could mean eating healthy and working out to avoid health blems down the road, staying current with car maintenance to avoid getting stuck on the side of the highway, or setting aside money for retirement, even if you're years or decades away

Additionally, Whatever the case, it's typically in your best interest to be active rather than reactive

Regarding retirement, it's important to be active with your savings because saving money alone isn't typically enough to build a nest egg that will last you through retirement

Moreover, Many people need to also invest that money with enough time and the power of compounding to grow it to the necessary level

Vanguard recently released its "How America s 2025" report, which sheds light on 1,400 defined contribution plans and the nearly 5 million workers who use them to and invest their money (this bears monitoring)

According to the report, the average account balance was $148,153 at the end of 2024, up 10% from the previous year

Image source: Getty Images

How do your savings stack up compared to your age group

On the other hand, Before digging into more numbers from Vanguard's report, it's important to note averages can be skewed by extremely low or high values, in light of current trends

While the average account balance across all ages was $148,153, the median (or midpoint value) was $38,176 (fascinating analysis) (which is quite significant)

This gap between the two values indicates some ultra-wealthy individuals pulled the average number higher

To get a better gist of where you may stand relative to your peers, here's a look at the average and median balances by age: Age Group Average Balance Median Balance Under 25 $6,899 $1,948 25-34 $42,640 $16,255 35-44 $103,552 $39,958 45-54 $188,643 $67,796 55-64 $271,320 $95,642 65 and over $299,442 $95,425 Data source: Vanguard, in today's financial world

Meanwhile, How much should you have d for retirement

While it's interesting to see these numbers, they don't mean much without context

An issue with many questions in personal finance is that the answer is usually "it depends. " This applies to budgeting, where to invest, when to claim Social Security, and how much you need to for retirement

If your goal is to travel the world during retirement, it's safe to assume you'll need more d than someone who plans to fish at the local lake and pass time people-watching on the porch

That said, a baseline that people use is the "80% rule

Moreover, " The 80% rule says you should aim to have at least 80% of your last working year's annual income in retirement in order to maintain the same lifestyle

For example, if you earned $60,000 in your last year working, you'd want to have $48,000 of annual income in retirement

Meanwhile, This percentage can be adjusted to account for major lifestyle changes, but it serves as a good starting point

Building on that figure, consider using the "rule of 25," which recommends saving 25 times the yearly amount you plan to spend in retirement (which is quite significant) (noteworthy indeed)

If your annual spend in retirement is $48,000, you'd aim to have $1, given current economic conditions

Moreover, 2 million d

What can you do if you're "behind" with your savings The How America s 2025 report is based solely on retirement accounts in plans administered by Vanguard, so the average and median balance data isn't representative of the U

Additionally, However, if you treat the numbers as a reasonable benchmark and feel you're behind, there are a few things you can do to speed up your gress, considering recent developments

The first step for people saving in a 401(k), which makes up the lion's of plans included in the Vanguard data, is to ensure they're taking full advantage of any employer match, if one is offered (which is quite significant), in light of current trends

Contributing anything short of that is essentially leaving free money on the table

If your company will match up to 5% of your salary, the least you should be contributing is enough to claim that full 5%

Another practical step is to increase your contribution rate

However, A one or two percentage point increase may seem minimal, but it can add up significantly over time thanks to compounding (this bears monitoring)

Nevertheless, An extra $1,000 d and invested this year could end up being worth many thousands by the time you reach retirement

Furthermore, Conversely, There's no magic button you can press to easily boost your retirement savings

This analysis suggests that takes discipline and consistency over time

The data indicates that one thing you want to avoid is doing nothing at all (which is quite significant)

Know where you stand, where you want to be, and make it a high(er) priority to get there as your finances allow (noteworthy indeed).