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Benzinga
Are You On Track To Join The Top 1% In Retirement Savings? Here's How
Much They Have At Every Age
Jeannine Mancini
Tue, Apr 30, 2024, 10:33 AM PDT4 min read

Are You On Track To Join The Top 1% In Retirement Savings? Here's How
Much They Have At Every Age
Are You On Track To Join The Top 1% In Retirement Savings? Here's How
Much They Have At Every Age
While many Americans struggle to save for retirement, the top 1% amass significant nest eggs. This raises the question: How much do they save,
and how does it compare to the national average?

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The average American couple has saved this much money for retirement —
How do you compare?

Can you guess how many Americans successfully retire with $1,000,000
saved? The percentage may shock you.

Data from DQYDJ, using Federal Reserve statistics, highlights that the
average retirement age in the United States hovers around 60, with a
median age of 62. The statistics also reflect the ongoing economic
activities of people who, while reaching retirement age, may continue to
work or gradually use their savings.

The overall retirement savings for the wealthiest 1% stand at
approximately $2.3 million. When considering a broader definition of
retirement assets, the figure escalates to $5 million.

Here is a breakdown of the estimated top 1% retirement savings by age group:

18-24 years: $150,000

25-29 years: $365,000

30-34 years: $365,000

35-39 years: $730,000

40-44 years: $1,234,600

45-49 years: $1,397,000

50-54 years: $2,311,000

55-59 years: $3,105,000

60-64 years: $3,550,000

65-69 years: $4,574,000

Trending: If the United States had access to today’s high-yield savings accounts rates in 2015, it wouldn’t need to save another penny.

Notably, savings start to decline for those in the 70-plus age bracket, indicating a shift from saving to spending during retirement:

70-74 years: $3,141,000

75-79 years: $3,300,000

80-plus years: $3,000,000

According to a report from The Motley Fool using Federal Reserve data,
the median retirement account balance for all working-age households
(aged 25 to 64) in 2022 was closer to $87,000.

This shows the significant disparity between the top 1% with millions
saved and the average American unable to reach even a six-figure account balance.

Some factors contributing to this gap include:

Income inequality: The top 1% of earners have a significantly higher
income compared to the national average. This allows them to dedicate a
much larger portion of their income toward savings and investments.

Access to employer-sponsored plans: Many high-paying jobs offer employer-sponsored retirement plans like 401(k)s with employer-matching contributions. These plans incentivize saving and accelerate wealth accumulation. Access to such plans is less common for lower-wage earners.

Financial literacy and advice: Wealthier people often have access to
financial advisers who can provide personalized investment strategies
and retirement planning guidance. This expertise can significantly
improve investment returns and overall wealth accumulation.


Story Continues
Student loan debt: A major burden for many young adults is student loan
debt. Repaying the loans can significantly hinder their ability to save
for retirement in their early years when compounding interest can have
the biggest impact.

Cost of living: The rising cost of living, particularly housing, can
force many Americans to prioritize basic needs over saving for
retirement. This squeeze on discretionary income disproportionately
affects low- and middle-income earners.

Trending: Are you secretly doing better with your money than you think?
Here are some signs you’re financially healthy.

If you’re fortunate enough to find yourself among the top earners,
consider maximizing contributions to retirement accounts, exploring
investment opportunities that align with your risk tolerance and
consulting a financial adviser to ensure your wealth continues to grow
and your retirement goals are met.

Even if the figures for the top 1% seem out of reach, it’s important to remember that everyone’s financial situation is unique. You can still
take to improve your retirement outlook. Every dollar saved now grows
over time thanks to compound interest.

Consulting a financial adviser can also be helpful for those trying to
catch up. They can assess your circumstances, create a personalized plan
that considers your income, risk tolerance and retirement goals, and
guide you toward making the most of your financial resources. By taking
these proactive steps, you can begin building a secure and comfortable retirement future, regardless of where you stand on the economic ladder.

Read Next:

82% of Americans aren’t using this government secured 5% passive income stream, are you one of them?

If the United States had access to today’s high-yield savings accounts
rates in 2015, it wouldn’t need to save another penny.

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This article Are You On Track To Join The Top 1% In Retirement Savings?
Here's How Much They Have At Every Age originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All
rights reserved.


View Comments
(60)
Carl
21 hours ago

The secret is to start early and save regularly. I started to work for
food at age 14 but could not afford to save until 28. I then continued
to save regularly to age 80. I am now in the 1% retired group. My
suggestion: If you cannot pay cash for something (except a house) you do
not need it.

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3 replies


USA
19 hours ago

I will be 60 years old in a few months, been saving and saving my whole
life. I have zero credit card debt and zero car payments and have a net
worth that hovers around $5.1M and when I am 62 will have income streams
of over $20k a month if I choose to retire. However I have never FELT
like I am in the 1% and I certainly do not live like that, I live a
modest lifestyle and even with my net worth still worry about finances.
My financial advisor last week told me that my biggest issue in
retirement will be to learn how to spend money after a lifetime of
savings. I think how much you have is all relative to how much you
spend. For me I think I just have this mindset that I just fear one day
I will be broke so I just save and save. My wife will be 61 in 2 mos and
she has put her foot down and she plans to retire in November and she
has said to me many times "I am done". Being in the 1% may sound
wonderful but I can assure you those folks worry about money also.

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Hagrinas
18 hours ago

For a lot of people, "rich" would be having twice as much as they have.
With $5 million, it might be $10 million. With $10 With $10 million, you
might think that it's 20 million. But you may eventually hit a number
that makes you feel that even in the worst case scenario, you won't run
out of money.

When I got there, I did buy a new car, and it was the first time in my
life that I could say that there was nothing wrong with the old one and
no reason other than desire. But my wife said that I've reached the
point where either I do that or leave it to my children to inherit.
Also, I'll probably still have it in a decade or two.

The other change I made is that I won't fly coach anymore. I don't need
the aggravation, and I can sleep on long flights. Aside from that, I was
fine before and don't need a mansion or yacht or airplane or even a
rowboat. Sticking with what I would have done before is fine in most
cases, and when things come up unexpectedly, I don't have to worry.

Five million is probably enough, but I wouldn't say that there's nothing
to worry about. You still need to be careful. Or at least I would. I'm
old enough for social security and it won't pay the bills. But even in
the worst case, I have enough on top of that even if I live forever.

eply
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Terence
12 hours ago

If your company has 401k matching, you need to get the max matching. If
they match the first 4%, you need to do 4% minimum. 10% is a better
place to start if you can. Then take half of every raise and add that percentage to your 401k. Within 10 years, you should be near or in the
20's%. Keep doing that over the long haul and you will win the game.

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Fire In The Hole!
21 hours ago

$150K retirement savings at age 18? Hello Trust Fund Baby. The rest of
us have to work for a living.


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3 replies


Andrew S
18 hours ago

I doubt that the perceived difference between the top 1% and the median
would be nearly as large if the present value of expected lifetime
Social Security benefits were included. The difference in SS benefits
between top 1% and median is likely not more than about 50% given the limitation on taxable earnings and the extreme progressivity of the SS
benefit formula. But, I suppose all these left-leaning authors have a
certain narrative they want to tell about inequality, so the progressive
nature of SS (and federal income taxes) never makes it into their stories.

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David
10 hours ago

I seen this on Bogleheads org. "At some point you are trading time you
will never get back for money you will nevr spend" "How do you want to
spend the best remaining years of your life"

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(60)
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