Retirement Retirement Planning

15 Signs Your Retirement Savings Puts You in a Better Position Than the Average American

While you might feel you aren't prepared for retirement, the average American isn't either.

By Katelyn Washington

Edited by Rachel Cribby

Updated March 25, 2025

Saving for retirement is not easy, especially when you're trying to stop living paycheck to paycheck. But it becomes much easier once you create a budget.

If you feel like you're behind on retirement savings, you're not alone. But you might be more prepared than you think. See how your retirement plan stacks up to the rest of Americans.

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You know how much you need to save for retirement

You're one step ahead of half of Americans if you've determined how much money you'll need in retirement (which can be a great way to lower your financial stress).

It's not possible to know how long your retirement will last or if you'll experience major health concerns. However, factoring in inflation, lifestyle, and accounting for emergencies can help you come up with an estimate.

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You started saving before age 27

The earlier you can start saving for retirement, the better. Workers in their 20s may earn less than they will in later years, but saving any amount for retirement is a good start.

The Transamerica Center for Retirement Studies (TCRS) revealed 27 is the median age Americans begin retirement savings. If you haven't reached 27 yet — or started saving before then — you're more prepared than most.

You're under 35 and have more than $12,300 in savings

According to PriceWaterhouseCoopers (PWC), the median retirement savings for Americans under 35 is $12,300. This amount does not include other types of savings.

If you have more than this in personal retirement savings or in a 401(k), you are already doing better than most.

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You're 35-44 and have more than $37,000 in savings

PWC found that the median retirement savings of 35-44 year-olds was $37,000.

If you fall in this age group but haven't hit this number yet, take advantage of any employer matching available to you.

You're 45-55 and have more than $82,600 in savings

By age 55, you're only 10 years away from full retirement age, yet PWC noted Americans 45-55 only had a median of $82,600 saved for retirement.

If you have more money than this saved, you're in better shape than most. But you'll want to grow this number significantly to enjoy a comfortable retirement.

You're 55-64 and have more than $120,000 in savings

$120,000 is not a lot of money, considering it might need to last 20 or more years. But according to PWC, this was the median retirement savings for adults 55-64.

Retirees with only $120,000 in savings might have to rely on Social Security benefits or continue to work during "retirement."

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You have a retirement plan and haven't dipped into it

A FinanceBuzz survey found that 41% of people with retirement accounts have taken early withdrawals. Dipping into these retirement accounts comes with added costs, such as penalties and taxes.

You can avoid needing to take early withdrawals from your retirement account by growing a healthy emergency account that you can dip into instead.

Pro tip: Budgeting correctly can help you prepare ahead by keeping an emergency fund. This allows you to have funds available for the unexpected and can help you keep more money in savings long-term.

You have an HSA

A health savings account (HSA) can prevent you from needing to make early withdrawals from your 401(k) for qualified medical expenses.

Contributions and qualified withdrawals aren't subject to tax, so you can keep more money in your pocket. Although HSAs have become more popular, many Americans still don't take advantage of them.

You have less than $6,730 in credit card debt

The average credit card balance in the United States was $6,730 in 2024, which is up 3.5% from the year before according to Experian.

Carrying a balance from month to month could hurt your financial goals, especially when it comes to high interest rates. Pay off debts and keep current card balances manageable to stay on track for retirement.

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You've paid off your student loans

According to a Bankrate survey, more than half of Americans ages 18-41 put off making significant financial decisions due to student loan debt.

And 27% have cited student loan debt as a reason for not growing their emergency savings.

If you've paid off, or are close to paying off your student loan debt, you are in a much better financial position than other Americans in this age group.

Debt isn't preventing you from saving or making financial decisions

Student loan debt isn't the only thing that can impact your financial decision-making. Mortgages, car loans, personal loans, and medical debt can hinder your savings progress.

Paying down debt will put you in a better position to save for retirement. Improving your credit score can help you get approved for credit cards with lower rates.

You fully understand Social Security benefits

While many Americans know they shouldn't rely on Social Security retirement benefits, less than 30% of people fully understand them, according to TCRS.

Knowing how these benefits work, how much you can expect, and if they are guaranteed will help you plan more effectively for retirement.

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You stay up to date on retirement planning strategies

It's a good idea to stay up to date on the latest retirement planning strategies and regulations, but most Americans don't do this.

It's not always easy to follow constantly changing laws or adjust to new conditions. A qualified financial planner can determine the best retirement strategies when new regulations arise.

You make more than $1,192 per week

The more money you make, the more you can save. According to the U.S. Bureau of Labor Statistics, the median weekly pay for full-time working Americans was $1,192 in the fourth quarter of 2024.

If possible, try to allocate at least 15% of your pre-tax income for retirement. If you're making the median wage of $1,192, that comes out to $178.8 each week.

If this is you, then you might want to find ways to make extra money.

You live a healthy lifestyle

Some people fail to realize how much money they can save by living a healthy lifestyle. Staying active, eating healthy, and avoiding things like smoking can reduce the risk of significant health problems.

Obesity can lead to heart disease and even heart failure. And smoking can cause terminal illnesses, such as cancer. Choosing to live a healthy lifestyle could save you tens of thousands of dollars.

Bottom line

Getting ready for retirement can take decades of saving and a lot of planning, especially when you want to retire early.

The truth is that most Americans are behind on retirement savings, but you can do better. And it's never too early to start saving.

Use these available tips to help you plan ahead so you can enjoy the retirement you dream of.

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Author Details

Katelyn Washington

Katelyn Washington is a writer with a passion for finance and business. She put herself through business school as a single mother of three and has had pieces commissioned by national magazines. When she’s not writing, she enjoys spending time with her family and editing manuscripts for indie authors.