Retirement Retirement Planning

15 Signs Your Retirement Savings Put 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 Stacy Garrels

Edited by Laura Hohenstein

Updated Jan. 16, 2026

Saving for retirement is not easy, especially if you're trying to stop living paycheck to paycheck or finally shake off student loans and credit card debt.

Regardless of where you are with other bills, it's possible to save ahead now for your senior years — and it becomes easier (and more motivating) once you know where you stand and you create a budget.

If you feel like you're behind on retirement savings, you're not alone. But you might be behind by some measures and much further along than others. When it comes to these 15 key signs, see how your retirement readiness stacks up compared to other Americans.

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You know how much you need to save for retirement

You're one step ahead of most Americans if you've determined how much money you'll need in retirement. According to an oft-cited study by Bank of America Merrill Lynch, 81% of Americans don't know much they'll need to retire.

While it's not possible to know how long your retirement funds will need to last or what medical care you may need, financial planners can help you come up with an estimate based on your salary, lifestyle, and retirement date, factoring in emergencies and common end-of-life expenses.

As a general rule, Fidelity Investments experts recommend having 10x your income by age 67 in retirement savings.

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You started saving in your 20s

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 now for retirement is an excellent start.

Starting in your 20s may enable you to retire in your 50s, as many experts agree that three decades is a solid interval of time for compound interest growth.

Research by the Transamerica Center for Retirement Studies (TCFRS), however, reveals that baby boomers and Gen X got a late start. On average, boomers started at age 35 while Gen Xers started saving at age 30.

You're under 35 and have more than $18,880 in savings

According to Federal Reserve research, the median retirement savings for Americans under 35 sits at $18,880.

If you're in this age cohort and have more than $18,880 in a 401(k) or IRA, you are already doing better than most.

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You're 35 to 44 and have more than $45,000 in savings

The same research shows median retirement savings of $45,000 for those ages 35-44.

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

You're 45 to 54 and have more than $115,000 in savings

At this point, you may feel the pull in opposite directions. You could be a decade away from retirement, while feeling the pressure to care for aging parents and help children get through college.

If you have more than $115,000 tucked away, you're doing better than average. However, Fidelity advisors say those in this age group should have 6x their annual income saved for retirement, or an average of $429,624.

Even if you're far behind, you still have time. And for workers aged 50 or older, you can take advantage of catch-up contributions.

You're 55 to 64 and have more than $185,000 in savings

$185,000 is not a lot of money, considering it may need to last 20 or more years.

Retirees with only $185,000 in savings might have to rely on Social Security benefits, delay retirement, 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, on average taking out $15,021. Dipping into these coffers comes with added costs, such as penalties and taxes.

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

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.

According to a Kaiser study, just 21% of Americans are in an HSA-qualified, high-deductible (HDHP) health plan, able to make HSA contributions toward future medical costs.

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

You have less than $6,735 in credit card debt

The average credit card balance in the United States was $6,735 as of June 2025, up less than 1% from the year prior, according to Experian.

Some age cohorts are struggling more than others. Here's a generational breakdown:

Generation Z: $3,493
Millennials: $6,961
Generation X: $9,600
Baby boomers: $6,795
Silent Generation: $3,445

Even if you're doing better than your peers, carrying any balance from month to month could hurt your financial goals.

Pay off debts and keep cards current to stay on track for retirement and avoid paying high interest and late fees.

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You've paid off your student loans

Among Americans who borrow money to pay for college, only 24% have paid off their student loans in full.

If you've paid off your loans or are current on your payments, you are already in a much better financial position than many others.

Of the 43 million Americans with student loan debt, Congress says that 5.3 million (12.3%) are in default.

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

Student loan debt isn't just a monthly wallet drain. Holding this type of debt can hinder progress in other major life areas.

According to one CNBC Survey, 81% of adults with student loans say they've had to postpone key milestones in life, such as buying a home, marriage, starting a family, or saving for retirement.

Paying down debt will put you in a better position to save for retirement and achieve other life goals.

You fully understand Social Security benefits

While many Americans will rely on Social Security retirement benefits to get by, most don't fully understand them.

A 2025 study by Allianz Life reveals that 55% of Americans don't fully understand how Social Security works or how those benefits will fit into their retirement plan.

Knowing how Social Security works and how much you can expect 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 $1,214 per week

The more money you make, the more you can save. According to the U.S. Bureau of Labor Statistics (BLS), the median weekly pay for full-time working Americans was $1,1214 in the fourth quarter of 2025.

If possible, try to allocate at least 15% of your pre-tax income for retirement. If you're making the median wage of $1,214, that comes out to $182.10 each week.

You live a healthy lifestyle and maintain a healthy weight

Some people don't 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.

While weight alone is not a measure of health, obesity can cost overweight Americans an extra $1,861 each year in medical costs, according to the Centers for Disease Control. For the severely obese (BMI of 40 or higher), that figure climbs to $3,097.

Bottom line

Getting ready for retirement takes decades of saving and thoughtful planning, especially for those who want to retire early.

While most Americans are behind on retirement savings, there's still time to do better. As the adage goes, the best time to start saving was yesterday, and the next best time to start saving is today. You're never too old or too young to get started — or to get back on track if you've fallen off course.

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

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