News & Trending Investing News

Here's How Much Money The Average 55-Year-Old Has Invested (How Do You Compare?)

Find out how your retirement savings compare to those of other 55-year-olds.

By Sarah Sharkey , Edited by Esther Carlstone

Updated March 26, 2026

Add Us On Google

As you enter your mid-50s, retirement starts to feel closer. If you plan to retire at the traditional age of 65, or even earlier, you have about 10 years or less by age 55 to make sure your finances are on track.

While building a large enough nest egg for a comfortable retirement isn't always easy, it's sometimes helpful to see where you stand financially against your peers. This guide explores the average 55-year-old's savings and how to boost your own as you increase your retirement readiness.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

The average retirement savings for 55-year-olds

American individuals between the ages of 55 and 64 have an average of $537,560 in retirement savings, according to the Federal Reserve Survey of Consumer Finances' latest data. But, notably, the same age group had a median retirement savings amount of $185,000.

The average incorporates both the extreme highs and extreme lows, which means outliers with large amounts of savings likely skew the average higher. In contrast, the median represents the number in the middle of all 55-year-olds and their savings, which is likely a more representative assessment of the state of savings for most 55-year-olds in America.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Where do most 55-year-olds have their savings?

Many 55-year-olds have some retirement savings accounts set aside. But many also have other pots of savings in other areas. A few other stockpiles include:

A median of $25,000 in certificates of deposit.
A median of $3,000 in savings bonds.
A median of $350,000 of home equity in a primary residence.
A median of $8,000 of cash in transactional accounts, like checking and savings accounts.

How to boost your retirement savings

Even though everyone's financial situation is different, it's sometimes helpful to compare your financial situation to others. But, in many cases, it can make you feel behind. If you're concerned about catching up, start by deciding how much you'll need to fund a comfortable retirement.

If you still feel behind after running the numbers, it's still possible to improve your finances before sailing into retirement. See some useful strategies below.

Consider an adjusted retirement plan

If you think you're behind on retirement savings, one solution is to adjust your retirement plans. Scaling back on your lifestyle plans in your golden years could make getting by on your current nest egg more realistic.

For example, if you had planned to travel extensively in retirement, maybe moving to an affordable locale with new amenities to enjoy might be a solution that fits your budget better.

Increase your retirement contributions

Since you're over 50, you can contribute an additional $1,100 to your IRA and an additional $8,000 to your 401(k) each year. If you're behind on your retirement savings, this opportunity could help you catch up.

Additionally, make sure to look into any retirement savings matching contributions from your employer. If you have any matching contributions on the table, make sure to take advantage of that opportunity.

Take stock of your biggest expenses

If you plan to increase your savings, you may need to decrease your spending. While it's tempting to cut back on little splurges, you'll make more of an impact by reevaluating your biggest expenses.

Most Americans spend the most on housing, transportation, and food. If you can cut back on these categories, you might find hundreds of dollars to sock away every month. For example, if you drive a luxurious vehicle with a large car payment, downgrading to a more affordable ride could help you save money without sacrificing your ability to get around town.

Grow Your $$: 11 brilliant ways you could build wealth after 40

Find ways to increase your income

Although cutting back on your spending is one way to boost your retirement savings, it's not always possible to reduce spending. Even if it's possible, it's not always enjoyable. An alternative option is to increase your income.

A few potential income streams include picking up extra shifts, selling crafts, finding a part-time job, delivering groceries, or even babysitting. If you find an extra income stream, make sure to put that money directly into your retirement savings.

Consider delaying your Social Security benefits

It's possible to start claiming a Social Security check as early as age 62. But if you claim before your full retirement age, you'll receive a smaller monthly check amount for your entire life.

When you wait until your full retirement age or beyond to claim your benefits, you'll receive the full monthly check amount. And if you delay retirement by even a couple of years, like 69, you'll lock in a larger monthly benefit that can provide more income throughout retirement.

Depending on your situation, waiting to claim your Social Security check could make a significant difference to your retirement budget.

Bottom line

Regardless of how your retirement savings stack up to your peers, they may or may not be enough to cover the retirement you have in mind. As a starting point, determine how much you'll need in retirement before making a plan to get there.

If you're aiming to retire early, walking through the details of your retirement plan is especially important as you climb into your late 50s.

More from FinanceBuzz:

Help Protect Your Savings From Stock Market Volatility With Gold

American Hartford Gold Benefits

American Hartford Gold helps individuals protect their retirement by rolling over IRAs and 401(k)s into physical gold.
Includes FREE IRA rollover and storage for up to 3 years.
Get up to $20,000 in free silver on qualifying purchases.

Download your guide for free