Are You Behind? The Truth About Average Retirement Savings by Age

Most people have no idea how much they should have saved for retirement. Some try not to think about it. Others compare their 401(k) to a friend's, or read a headline that makes them feel like they're too late to catch up. The truth? Most Americans are falling short of expert benchmarks, but that doesn't mean your story is written. In this article, we'll break down the average retirement savings by age using recent data from Self Inc. and other national sources. We'll look at how Gen Z is surprisingly ahead, why Gen X is struggling, and how 401(k) balances are shifting in 2025. You'll also learn how new policy changes like the SECURE 2.0 Act give savers more opportunities, why your credit matters in retirement planning, and how tools like Cheers Credit Builder can support your journey even if you're starting late.

What the Data Tells Us: Average Retirement Savings by Age

According to Self Inc., Americans fall short of the amount that many financial experts recommend for retirement savings. Here's how the average savings look by age group, along with what's commonly suggested as a target:

• Ages 25-34: The average retirement savings is about $30,000. At this stage, experts suggest aiming to have your annual salary saved.
• Ages 35-44: The average climbs to around $76,000. You should save roughly three times your annual salary.
• Ages 45-54: Average savings hover around $142,000, with targets closer to four or five times your salary.
• Ages 55-64: Americans in this group average $232,000 in retirement savings. Financial planners recommend having six times your annual salary saved at this point.
• Ages 65 and older: Savings average around $280,000, with retirement targets as high as eight to ten times your salary, depending on lifestyle.

These benchmarks don't account for individual income, debt, or life circumstances, but they offer a general direction for what retirement readiness could look like.

What's Changing in 2025

Several shifts are reshaping how people approach retirement. Gen Z is saving earlier and more aggressively than previous generations. Many contribute 15-20% of their income and have seen firsthand how fragile financial stability can be. Gen X, now in their 40s and 50s, is feeling stuck. They're often caught between supporting aging parents and raising children, and many haven't built enough savings to feel confident about retirement.

401(k) balances dropped by roughly 3% in early 2025 due to market volatility. That's created uncertainty for older workers nearing retirement. Meanwhile, the SECURE 2.0 Act provides a lifeline for late starters. Those over 50 can now contribute more to their retirement accounts, and employers are offering Roth options and auto-enrollment features to boost savings rates.

At the same time, movements like FIRE (Financial Independence, Retire Early) continue to grow. People aiming to retire before 50 are adopting even more conservative withdrawal strategies to stretch their savings across longer retirements.

The Aspiration: A Retirement You Don't Have to Worry About

Retirement doesn't have to mean luxury-it needs to mean freedom. Freedom to stop working when you choose. Freedom to help your kids if they need it. Freedom to travel, stay active, and enjoy your time without constantly worrying about bills.

That kind of future starts with consistent action. And it doesn't matter if you're starting at 25 or 55-what matters is that you begin.

Where You Might Be Right Now

If you're in your 20s or 30s, saving anything can feel tough. Between rent, loans, and groceries, retirement may not be your top priority, but starting small now makes a massive difference over time. If you're in your 40s or 50s and you've barely saved, you're not alone. Millions of people in this age range are behind on retirement goals. However, tools like catch-up contributions and employer matching still provide you with time to close the gap. And if you're already in your 60s, thoughtful withdrawal planning and maximizing Social Security can stretch your savings further.

How to Take Control of Your Future-Even If You're Starting Late

You don't need to hit every benchmark to feel in control. Here's what matters:

• Set up automatic savings-even $50/month makes a difference when compounded over the years.
• Take advantage of your employer's match if you have a 401(k). That's free money you shouldn't pass up.
• Use catch-up contributions once you're 50 or older. SECURE 2.0 expanded those limits in 2025.
• Explore Roth IRAs and HSAs, especially if you're younger and still growing your income.
• Stick to a sustainable withdrawal rate-most experts now recommend 3.25% to 3.5% annually to avoid running out of money too soon.

No matter your income level, there are steps you can take to improve your retirement outlook, starting with the basics.

Where Cheers Fits Into the Picture

Credit might not be the first thing you think of when it comes to retirement, but it plays a significant role. A strong credit profile can lower your interest rates, improve loan terms, and give you access to better financial tools as you age. If you're behind on retirement savings, reducing the cost of borrowing and avoiding unnecessary fees can be a significant help.

That's where Cheers Credit Builder steps in.

Cheers helps you build credit while saving. There's no credit check, no setup fee, and no membership cost-just a fixed low interest rate. Each month, you make payments that get reported to all three major credit bureaus. The money you pay is held in an FDIC-insured account, and when the term ends, you receive your funds back, minus the interest.

It's one of the few tools designed to build credit and savings simultaneously. Whether you're starting your credit journey or trying to clean up your credit later in life, Cheers gives you a smart and simple way to move forward.

You're Not Too Late-You're Right On Time

The average retirement savings by age is helpful for perspective, but it's not the final word on your financial future. You don't need to hit every target perfectly. You need to move forward with intention.

Whether you're just starting to save, catching up after a few lost years, or closing in on retirement age, there's still time to make progress. Set your pace, stay consistent, and choose tools that help you move forward. And if you want to improve your credit while saving for tomorrow, Cheers is here to help.