The Federal Reserve’s Survey of Consumer Finances is published every three years. It gives a financial overview of American households, detailing their income, assets, debt, and net worth across various demographic and economic groups.
Average Retirement Savings and Net Worth in American Households
The latest Federal Reserve’s Survey of Consumer Finances, conducted in 2022 and published in October 2023, found that American households have an average retirement account balance of $333,940. They have also an average net worth of $1.06 million.
Retirement savings include the total balance of individual retirement accounts (IRAs), Keogh accounts, and employer-sponsored accounts like 401(k), 403(b), and the Thrift Savings Plan. It does not count investments in individual brokerage accounts.
It was seen that the average Retirement Savings by Age Group was broken down as below:
| Age Group | Average Retirement Savings |
| 18-34 | $49,130 |
| 35-44 | $141,520 |
| 45-54 | $313,220 |
| 55-64 | $537,560 |
| 65-74 | $609,230 |
| 75+ | $462,410 |
| All Households | $333,940 |
Net worth is assets (both financial and non-financial) minus debt. According to the 2022 SCF, the most common financial assets for American households were bank accounts (98.6%), retirement accounts (54.3%), and brokerage accounts (21%). The survey reported that the vehicles (86.6%) and primary residences (66.1%) were the most common non-offical assets.
Over three-quarters of American households reported having debt, averaging $163,800. The most common sources were credit cards (45.2%), vehicle loans (34.7%), and education loans (21.8%).
| Age Group | Average Net Worth |
| 18-34 | $183,380 |
| 35-44 | $548,070 |
| 45-54 | $971,270 |
| 55-64 | $1.56 million |
| 65-74 | $1.78 million |
| 75+ | $1.62 million |
| All Households | $1.06 million |
Median Retirement Savings and Net Worth in American Households
Averages can be misleading with asymmetric data, which does not follow an even distribution. Net worth and retirement savings are examples of this because wealth is unevenly distributed. When looking at the data presented by the Federal Reserve Bank of St. Louis showed that 66.9% of the total household wealth is currently controlled by the top 10% of American households.
Asymmetric data skews the average higher due to a few wealthy individuals. Therefore, the median is a better benchmark, representing the middle value, with 50% of data points above and 50% below it.
The data below shows the median retirement account balance and net worth among American households, categorized by the age of the reference person.
The below data shows the median retirement savings and net worth in American households. The data has been categorized according to the age of the people.
Median Retirement Saving according to Age Group:
| Age Group | Median Retirement Savings |
| 18-34 | $18,880 |
| 35-44 | $45,000 |
| 45-54 | $115,000 |
| 55-64 | $185,000 |
| 65-74 | $200,000 |
| 75+ | $130,000 |
| All Households | $87,000 |
Median Net Worth according to Age Group:
| Age Group | Median Net Worth |
| 18-34 | $39,040 |
| 35-44 | $135,300 |
| 45-54 | $246,700 |
| 55-64 | $364,270 |
| 65-74 | $410,000 |
| 75+ | $334,700 |
| All Households | $192,700 |
The median American household in the 2022 Federal Reserve’s Survey of Consumer Finances showed that the retirement account balance was $87,000 and the net worth was $192,700. This means half of households reported higher balances and wealth, while the other half reported lower ones.
Feeling dissatisfied or embarrassed is natural, but improving financial standing is possible with the right approach. Starting with a budget is key, and many financial planners suggest the 50-30-20 rule:
- Allocate 50% of income to essentials like housing and utilities.
- Use 30% for discretionary spending like dining out or entertainment.
- Save or invest the remaining 20% for financial goals or emergencies.
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