The average retirement savings by age in the United States is pretty impressive. There are a number of factors that go into the equation. Your age, the size of your family and your financial situation all contribute. It’s always a good idea to look at a few different scenarios in order to determine how much money you’ll need for your golden years.
A retirement calculator or retirement savings spreadsheet can help you figure out how much you need to save. If you don’t already have a plan in place, you may want to consider starting one. You don’t want to turn 60 with zero savings.
If you’re young, you can start saving for your retirement as early as you can. For instance, you may be able to use your student loan payments to fund your future. Or you might be able to put off a large purchase like a car until you’ve reached retirement age.
Saving for retirement isn’t as easy as you think. Many Americans find themselves under-saved in general. However, many more have plans in place. And the benefits of saving for your later years can be substantial.
To find out if you’re doing as well as you could be, compare your savings against others in your same age group. As mentioned, your age can influence how much you need to save, but other factors, such as your income, may play a more important role.
Luckily, there are plenty of tools and resources to help you along. One is the Federal Reserve’s Board Survey of Consumer Finances. Another is the Northwestern Mutual 2022 Planning and Progress Study.