How Your Nest Egg Stacks Up Here’s what it takes to be in the top 10% of retirement savings
Let’s talk about it your nest egg. No, not the “Why didn’t you save more?” way – this isn’t a guilt trip. Instead, think of it as a friendly check-in. How do I measure it?And for those of you looking at it top 10% of retirement saversthese numbers will show you what is needed.
Spoiler: There’s always time to make a move. Let’s break it down.
Don’t miss it.
The averages. Are you ahead or behind?
First, let’s look at what the average American has saved for retirement by age group, according to the 2022 Survey of Consumer Finances.
Up to 35 years old.
• Average savings: $49,130
• Average savings: $18,880
35-44 years old.
• Average savings: $141,520
• Average savings: $45,000
45-54 year olds.
• Average savings: $313,220
• Average savings: $115,000
Age 55-64.
• Average savings: $537,560
• Average savings: $185,000
65-74 years old.
• Average savings: $609,230
• Average savings: $200,000
75 and over.
• Average savings: $462,410
• Average savings: $130,000
If you beat these averages, it’s worth celebrating. But maybe you should look at the next level, joining the top 10%. What does that look like?
The top 10% of pension savers are in a league of their own. Here’s what it takes to join their ranks.
Average savings: about $900,000.
Average savings: approximately $1.3 million.
It’s important to note that the average is higher because a few ultra-wealthy savers skew the numbers, while the average shows what most people have.
By age 50, 10% of savers often have more than $500,000.
By age 55, they typically approach $750,000 or more.
And the crème de la crème? Tea the top 1% boast $2.3 million in savings. But when looking at the broader definition of retirement assets, that number rises to $5 million, according to DQYDJ data using Federal Reserve statistics.
What should you aim for?
Even if the top 10% feels out of reach, financial experts offer guidelines to keep you on track for a comfortable retirement.
• 30 years old. save your annual salary 1 time.
• 40 years old. 3 times your salary.
• 50 years old. 6 times your salary.
• 60 years old. 8 times your salary.
• 67 years old. 10 times your salary.
These milestones are not hard rules. life happens But they are a good starting point to see where you stand.
If your savings seem a little tight, don’t stress. There are plenty of ways to catch up.
1. Maximize pension contributions. contribute as much as possible to your 401(k) or IRA.And if your employer offers a match, take that free money.
2. Start saving early. the sooner you start, the more compound interest will work in your favor. If you’re late to the game, don’t worry, you can still catch up.
3. Take advantage of complementary investments. For those over 50, you can sock an extra $7,500 a year through your 401(k). Beginning in 2025, individuals ages 60-63 can save up to $11,250.
4. Reduce unnecessary expenses. Redirect your savings to your retirement fund. Small sacrifices now can lead to big wins later on.
5. Diversify your investments. A mix of stocks, bonds and other assets can balance risk and grow your nest egg.
It’s not too late to make a move
If you’re behind, don’t panic. It’s never too late to start. Whether you’re in your 50s or just starting out in your 20s, every little bit counts. The key is to be consistent and make smart financial choices now to kickstart your future.
So how does your nest egg stack up? If you’re already ahead of the average, you’re in a great place. If not, now is the perfect time build a plan and take control of your financial future Remember, retirement savings isn’t about perfection, it’s about progress.
*This information is not financial advice and personalized guidance from a financial advisor is recommended to make well-informed decisions.
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