Retirement savings look different for everyone. To give you a better idea of how much to save and how Americans are preparing for retirement, GOBankingRates surveyed 1,000 working Americans age 21 and older. The survey, conducted in November 2024, covers a variety of topics, including current 401(k) balances and beliefs about what middle-class Americans need to retire comfortably.
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To understand public sentiment about retirement savings, we asked the typical middle-class American how much they had saved by age 65.
Our survey found that younger respondents (ages 21-34) are more likely to believe retirees have less than $50,000 in savings, with 25.95% holding this view. This sentiment is consistent among other age groups, with 29.47% of those aged 35-44 and 25% of those aged 55-64 also choosing this range. In comparison, fewer respondents expected higher savings: only 13.92% of younger respondents believed retirees’ savings would be between US$300,000 and US$500,000, and only 3.16% expected retirees’ savings to be between US$300,000 and US$500,000. Savings exceed $1 million.
These findings indicate substantial uncertainty about retirement readiness. While some respondents’ opinions may be based on personal experience, others may lack awareness of expert advice, which often recommends saving 10-12 times your annual income, a benchmark that is well beyond what most people believe Typical level. This disparity suggests to us that clearer guidance is needed on what is really needed to achieve a financially secure retirement.
See more: 7 Things You’ll Be Glad About Downgrading When You Retire
The current state of Americans’ 401(k) balances highlights significant differences among different age groups:
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21 to 34 years old: 19.6% have less than $25,000 saved, while 32.91% report balances between $50,001 and $100,000. Only 10.76% have saved between $100,000 and $500,000, and no one has saved more than $500,000.
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35 to 44 years old: Savings improved slightly, with 17.24% saving between $100,001 and $500,000. However, 20.69% still have between $25,001 and $50,000 in savings.
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45 to 54 years old: 20.87% have saved between US$100,001 and US$500,000, but 16.54% have saved less than US$25,000.
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55 to 64 years old: 17.19% have savings between $100,001 and $500,000, and only 5.79% have savings over $500,000.
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65 years and over: 24.68% have balances between $25,001 and $50,000, but 19.48% have no 401(k) at all. Nearly 8% claimed to have more than $500,000 in their 401(k) plans.
