Do you ever wonder whether you’re doing enough to plan for retirement?
Do you question, from a savings perspective, whether you’re on track to retire when you hope to? Have you thought about how much retirement savings you should have at this point in your life?
If those questions sound familiar, you’re not alone. Clients often ask how their current financial situations compare to others in their age groups. The national statistics might shock you.
According to the nonprofit think tank Economic Policy Institute, nearly half of working-age families lack any retirement savings at all. Zero. That means whatever amount you’ve accumulated puts you further ahead than many people. Unfortunately, most individuals who do have retirement savings accounts are significantly behind where they need to be to retire comfortably.
Retirement Savings by Age Group
Looking at typical retirement accounts—for only those who have one—helps provide a perspective on how your savings compare to your age-group cohorts.
The following table uses data from the Federal Reserve to show both average and median retirement account balances by various age groups. NOTE: The material is provided for informational purposes only and not intended as investment advice.
Dollar amounts rounded to nearest hundred.
What’s Your Plan?
Now that you know how you stack up to others when it comes to saving for retirement, it’s time to consider more relevant questions. First, how much income will you need in retirement? And second, what steps should you be taking toward reaching your retirement savings goals?
Every person’s situation is unique, of course. That’s why it’s helpful to work with a professional financial advisor when planning for retirement. A trained advisor can help project the retirement income you’ll need to enjoy life the way you want. And with that knowledge, your advisor will work with you to develop and execute a comprehensive retirement savings plan.