The Average 50-Year-Old Has This Much in Their IRA: How Do You Compare?

Once you turn 50, retirement is suddenly not so far away. No matter where you stand financially, planning for retirement is something that you don't want to overlook at this age.

So, how does your IRA stack up against the average 50-year-old? Discover what you can do if you are not where you want to be financially.

People in their 50s are firmly part of the Generation X cohort. The average IRA balance of people in Generation X is $103,952, according to research from Fidelity.

Since this covers the entire 15-year span of Gen X, including all folks born between 1965 and 1980, someone who is 50 years old might have slightly less money than this in their account.

Also, keep in mind that this is the average, so wealthy individuals with large IRA balances likely have driven up the number.

Considering that AARP says 20% of Americans who are 50 or older have no retirement savings, if you're anywhere near the average IRA balance, you're doing better than many. But that doesn't mean you don't have work to do.

If you have little to no savings put away and you are 50, it's time to get serious about building a nest egg.

Even if you are near or slightly above the average of $103,953, this is no time to relax. That amount of cash is nice to have, but it won't get you through decades of retirement.

Fortunately, the following strategies can help you boost your IRA account and improve your financial fitness.

Setting up automatic contributions is a convenient and straightforward way to reach the maximum IRA contribution each year.

By automating contributions, you contribute a little bit of your paycheck to the account each month, which might make things easier than making one big contribution.

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The IRS allows individuals who are 50 or older to make catch-up contributions to their retirement accounts.

In 2025, any American who is 50 can contribute $7,000 to their IRA account, plus an extra $1,000 in catch-up contributions.

The more money you contribute to your IRA, the faster you will get ahead financially, and the bigger your retirement savings will be.

Many experts recommend becoming more conservative in your investments as you near retirement. But you don't want to be too conservative, especially if your nest egg is relatively small.

If you are 50, you likely have a decade or more of work ahead of you. So, you may still have enough time to take on a bit more risk if you have been too conservative in your investments over the years.

Of course, any time you buy stocks, you are putting your money at risk of permanent loss. If you are unsure about how you should invest, sit down with a financial advisor who can offer guidance.

Working a side hustle or taking a part-time job is a great way to earn extra income and build your retirement savings.

Just make sure to automate the process so you are not tempted to spend all that extra money.

Today, there are more entertainment options than ever before. Unfortunately, the cost of paying for that entertainment can add up quickly.

Streaming subscriptions, concerts, sporting events, and other forms of entertainment can eat away at your monthly paycheck and reduce your ability to contribute to retirement accounts.

Cutting back a bit on entertainment and redirecting that money into an IRA is a smart long-term move.

It can be tempting to splurge on something frivolous after you receive a bonus or another type of financial gift. However, it's more prudent to invest your windfall.

If your bonus or gift is large enough, it might allow you to max out your annual contribution in one fell swoop.

Another savvy financial move is to take your annual tax refund and put it directly into your IRA account.

Again, it can be tempting to spend this unexpected cash, but it's better for your long-term financial health to move the money directly into retirement savings.

Marriage offers numerous financial benefits, including your ability to maximize IRA contributions.

Each spouse can have a separate IRA and contribute the maximum annual amount, essentially doubling contributions. This is a great way for families to build a big retirement account.

Delaying retirement can work wonders for your financial accounts. Not only does it allow you to continue contributing to your IRA, but it also keeps you from having to dip into your nest egg too early.

If you're still physically able to work and don't mind doing so into your 50s and 60s, and possibly beyond, it can significantly impact your retirement cash flow.

As you enter your 50s, smart planning and saving for retirement become more crucial than ever.

Even if you are a member of Generation X with an IRA balance near the average of $103,953, you have a lot of saving ahead of you if you want a stress-free retirement.

Fortunately, you still have time to build a big nest egg, but only if you get to work on it soon.