American Retirement Savings in 2016: Average Amounts By Age
A recent study by Investopedia dug in depth into the average amount of money people in America have saved for retirement during each decade of their adult lives. The results give some indication as to the average person’s amount of money plus their mindset regarding savings at certain periods of their lives.
One study from last year indicated the average American has approximately $104,000 in retirement savings by the time they have reached 55 to 64 years old. This might sound like a lot of money, until you realize it would only result in a $310-per-month payout if put into a lifetime annuity.
Here is some information to give you a better idea of where the average person stands with their retirement savings by certain ages:
- In your twenties: At this stage of your life, you’re just getting settled into a career, which means you likely are not making a whole lot of money. You are also likely to have a significant amount of student loan debt ($30,000 for the average graduate). However, there are still plenty of options to help you get a head start on your savings, beyond just contributing to your 401(k) plan offered by your employer.
- In your thirties: At this point, the average thirtysomething has saved up about $45,000. At this stage of your life, you have likely moved up the pay grade in your industry, though have more financial responsibilities, such as a family and a mortgage.
- In your forties: Fortysomethings are in the prime of their career, and likely have hit the upper level of their pay grade. However, at this point there is something of a panic setting in, as you are getting closer to retirement and have kids that are getting older and preparing to go to college. This is the point at which Americans are most likely to fall behind. While a good benchmark is to have three times your average salary saved up at this point, the median savings is only $63,000.
- In your fifties: You are perhaps only a decade, or a decade and a half, away from retirement. The median amount of savings for people at this age is $117,000, which is far shy of the benchmark set by experts of $240,000 for a person making $60,000 a year. Many people consider downsizing as a means to get closer to their retirement goal.
- In your sixties: The median sixtysomething has only $172,000 of the suggested $360,000 in the bank at this point.
Traditional sources of saving are clearly letting down the average person. It’s time to make your money work for itself, and be your own banker.
For more information about how to accomplish this, contact us today at Living Wealth.
Nate Scott, Client Development Coach
Nate Scott joined Living Wealth, Inc. with a desire to help families and small businesses become financially free. It was there, under the wise leadership of Ray Poteet, that he learned the power of “Becoming Your Own Banker” through Private Family Financing (PFF) and has made it his mission to tell others so that they can feel the same sense of freedom and control that he enjoys today.
Nate loves to teach people the benefits of becoming their own banker and to coach them on how to successfully implement the system in their constantly changing lives. He longs for everyone to hear the truth about how money really works and to understand the power and freedom that Private Family Financing can bring to their families.