How does your retirement planning compare to others your age?
Your retirement goals and your retirement savings plan should always be personal. However, it can be helpful to know what other people your age are saving, so you can have an idea of whether you are on a good track for reaching a healthy retirement goal.
Take a look below at the average retirement savings by age and by income so you can see if you are meeting the average or have some catching up to do.
Average retirement savings by age
The average retirement savings of American 401(k) accounts by age are:
- 20s — $12,000
- 30s — $45,000
- 40s — $100,000
- 50s — $180,000
- 60s — $200,000
Average retirement savings by income
Knowing what your age group saves on average is a helpful metric, but you can further home in on how your savings are tracking by comparing them to your income group. Below are the average retirement savings per household by income group:
- Bottom 20% — $23,000
- 20% – 40% — $45,000
- 40% – 60% — $80,000
- 60% – 80% — $150,000
- 90% – 99% — $990,000
- Top 1% — $2.5 million
What do you do if you are saving less than average for your age group?
While it is in everyone’s best interest to start saving for retirement as early as possible, do not ever think it is too late for you if you have not started yet. You can take some steps to make sure you have enough money to retire more comfortably than you would continuing on without a plan.
You need to talk to a financial advisor about your retirement goals, your current financial circumstances, your current savings and how you want to reach your goals. Your financial advisor can help you come up with a financial plan for paying off debts, investing and saving, and having enough left over for living expenses and day-to-day expenses. Sticking to your financial plan enables you to stay on track for reaching your retirement goals.
Additionally, financial advisors can help you assess your insurance plan options and factor the insurance plans you need into your overall financial and retirement plan.
Talk to a ProVise CFP® professional about saving up for retirement
Saving for retirement without a strategy is like casting a fishing net into the ocean without knowing where the fish are. You might catch a few, but your net is going to be more empty than full. A financial advisor can help you navigate the ocean of the financial world and cast your net in the right place.
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about saving for retirement? Contact ProVise today to schedule a complimentary consultation.