Retirement Retirement Planning

Here's The Average Retirement Savings of 55-Year-Old Americans (How Do You Compare?)

A clear-eyed look at what most Americans have saved by 55, and how to tell whether your own retirement picture is on track.

By Kristin Hitchcock

Edited by Laura Hohenstein

Updated Jan. 31, 2026

By the time you're 55, retirement can feel very real. It's no longer some day way out in the future. It's a real chapter that you can see from where you're standing, even if you aren't exactly sure how to get there. Some people feel confident. Others feel behind. Most are somewhere in between.

Either way, this is a good moment to check up on your retirement readiness by comparing your savings to your peers'.

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What the average 55-year-old has saved for retirement

According to data from the Federal Reserve's Survey of Consumer Finances, households headed by someone in their mid-50s typically have around $185,000 saved across retirement accounts and other savings vehicles, based on the median savings.

This is much lower than the average, which is closer to $537,560, but is driven high by a few very wealthy households. Some 55-year-olds have well over $1 million saved. Many have far less than $100,000. The "average" blends together people in very different financial situations and careers.

That's why this number is best used as a reference point, not a verdict.

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Median vs. average: why the difference matters

When you look at retirement statistics, you'll often see both an average and a median balance. The average is pulled upward by households with very large savings. The median (the middle point) is much lower.

For 55-year-olds, the median retirement savings balance is less than half of the average. This means that the large majority of people have far less than the "average," while a select few have much, much more.

If your own savings don't look like the "average," you're not unusual. You're probably closer to the statistical norm than you think.

What "enough" really depends on

There is no single number for how much a 55-year-old should have saved. What's "enough" depends on things like:

When you hope to retire
How much you expect to spend each year
Whether you'll have Social Security or a pension
Your health and likely longevity
Whether your home will be paid off

Two people with the same account balance can be in completely different situations. One might be nearly ready, while the other might still be years away.

Common reasons balances look lower than expected

If your savings feel like they're behind, there are plenty of normal reasons why:

You started saving late
You took time out of the workforce
You went through a divorce or job loss
You helped kids with college
You prioritized paying off debt or a mortgage

Real life has a way of interrupting perfect financial plans. Most people don't get a straight, uninterrupted runway to retirement.

The role Social Security will likely play

For many 55-year-olds, Social Security will eventually provide a meaningful portion of retirement income. But it usually isn't designed to cover all expenses by itself. In fact, it will only cover around 38% of your working income.

That means your personal savings and investments will need to make up the rest, even if your balance doesn't look huge today.

That's why timing matters. Claiming earlier or later can significantly change monthly benefits.

If you feel behind, here's what actually helps at 55

At 55, you still have lots of time to make a difference. Here are some powerful tools you have available:

Catch-up contributions: You can contribute more to 401(k)s and IRAs than younger workers.
Higher savings rate: Peak earning years often happen in your 50s.
Clearer goals: Retirement planning usually getts mroe focused and realistic at this stage.

Even a few strong saving years can seriously change your trajectory, especially if markets cooperate.

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How much progress can five to ten years make?

It's easy to underestimate what consistent saving and compounding can do in the final stretch before retirement.

For example, someone who saves $20,000 per year for 10 years and earns a reasonable return could add hundreds of thousands of dollars to their nest egg. Of course, this isn't guaranteed, but it does show why this phase still matters.

The plan doesn't have to be perfect. It just has to be executed consistently.

A simple way to sanity-check your situation

Instead of focusing on national averages, try answering these questions:

About how much income will I need each year in retirement?
How much of that might Social Security cover?
How much will need to come from my own savings?
Roughly how many years will that money be needed?

This kind of back-of-the-envelope math often tells you far more than comparing yourself to other people's balances.

Bottom line

At 55, comparing your savings to national averages can be useful, but it doesn't tell the whole story. What matters more is understanding your own goals, expected expenses, and income sources so you can judge how well you've prepared for retirement based on your needs, not someone else's numbers.

At age 55, you're eligible for penalty-free withdrawals from a 401(k) if you leave your job, which can change how you think about timing and cash flow in the final stretch before full retirement.

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