How do nest eggs stack up? What it takes to be in the top 10% of retirement savers
let’s talk about your nest egg. No, it’s not “Why didn’t you save more?” Look, this is not a guilt trip. Instead, think of this as a friendly check-in. Whether your savings are skyrocketing or you’re on track, it’s natural to wonder, “How do I measure it?” And for those who are paying attention, Top 10% of retirement saversThese numbers tell you exactly what you need.
Spoiler: It’s not all doom and gloom. There’s always time to take action. Let’s break it down.
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Average: Are you ahead or behind?
First, let’s look at how much the average American saves for retirement by age group. According to the 2022 Consumer Finance Survey, the current situation is as follows.
Under 35 years old:
• Average savings: $49,130
• Median savings: $18,880
Ages 35-44:
• Average savings: $141,520
• Median savings: $45,000.
Ages 45-54:
• Average savings: $313,220
• Median savings: $115,000.
Ages 55-64:
• Average savings: $537,560
• Median savings: $185,000.
Ages 65-74:
• Average savings: $609,230
• Median savings: $200,000
Over 75 years old:
• Average savings: $462,410
• Median savings: $130,000
If you’re above these averages, it’s worth celebrating. But maybe you’re looking to join the next level, the top 10%. what does it look like?
The top 10% of retirement savers are in a unique position. Here’s what you need to do to join their ranks.
Median savings: approximately $900,000.
Average savings: approximately $1.3 million.
It’s important to mention that the average is higher because a small number of ultra-wealthy savers skew the numbers, but the median shows what most people have.
By age 50, the top 10% of savers often have more than $500,000 stashed away.
By age 55, they are usually approaching $750,000 or more.
And what about crème de la crème? of The top 1% boasts savings of $2.3 million.. But when you factor in broader retirement assets, that number jumps to $5 million, according to data from DQYDJ using Federal Reserve statistics.
What should I aim for?
Even if the top 10% feels far away, financial experts offer benchmarks to help you get back on track for a comfortable retirement.
• Age 30: Save 1x your annual income.
• Age 40: 3 times your salary.
• Age 50: 6 times your salary.
• Age 60: 8 times your salary.
• Age 67: 10 times your salary.
These milestones aren’t hard and fast rules. Things happen in life. But they are a good starting point to see where you stand.
If you feel like you don’t have enough savings, there’s no need to stress. There are many ways to catch up.
1. Maximize your retirement savings: Contribute as much as possible to your 401(k) or IRA. If your employer offers a match, grab that free money!
2. Start saving early: The earlier you start, the more compound interest works in your favor. Don’t worry if you’re late to the game. You can catch up.
3. Take advantage of catch-up contributions: If you’re 50 or older, you can put an extra $7,500 a year into your 401(k). Starting in 2025, individuals ages 60 to 63 will be able to save up to $11,250.
4. Cut unnecessary expenses: Direct your savings toward retirement. make a small sacrifice now It can lead to big wins later on.
5. diversify your investments. A mix of stocks, bonds, and other assets can help you balance risk and grow your nest egg.
It’s never too late to take action
Don’t panic if you’re late. It’s never too late to start. Whether you’re playing catch-up in your 50s or just starting out in your 20s, every little thing counts. The key is to be consistent and make smart financial choices now that will benefit you in the future.
So how does your nest egg stack up? If you’re already above average, you’re in a great position. If not, now is the perfect time make a plan And take control of your financial future. Remember, saving for retirement is not about perfection, it’s about progress.
*This information is not financial advice. To make informed decisions, we recommend individual guidance from a financial advisor.
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