Retirement basics · 6 min read
Average Retirement Savings by Age: What the $185,000 Figure Leaves Out
For households headed by someone aged 55–64, the median retirement account balance is $185,000 — but that is the median among the 57.0% of those households that have a retirement account at all. The other 43% hold nothing in one. The average for the same group is $537,563, nearly three times the median, because averages follow the largest balances. All of these figures come from the Federal Reserve's Survey of Consumer Finances for 2022, the most recent published wave, and none of them count defined-benefit pensions, Social Security, home equity, or ordinary brokerage accounts. This is an educational summary, not advice.
There is a particular kind of search people run late at night, and it is some version of how much has everyone else saved by now. It is a fair question. The answer that circulates most widely is a single number — often $185,000, sometimes $537,563 — presented as what people approaching retirement have put away.
Both figures are real. Both come from the same table. And both describe a narrower group than almost anyone quoting them says out loud.
What the numbers actually are
The Federal Reserve's Survey of Consumer Finances is the standard source, and the Congressional Research Service publishes the age breakdown. Here is the whole table for retirement accounts — defined contribution plans and IRAs combined — for 2022, the most recent published wave.
| Age of household | Share with a retirement account | Median balance (households with accounts) | Average balance (households with accounts) |
|---|---|---|---|
| Younger than 35 | 49.6% | $18,880 | $49,127 |
| 35–44 | 61.5% | $45,000 | $141,517 |
| 45–54 | 62.2% | $115,000 | $313,230 |
| 55–64 | 57.0% | $185,000 | $537,563 |
| 65 and older | 47.1% | $170,000 | $554,422 |
| All households | 54.3% | $87,000 | $334,097 |
Source: Congressional Research Service, Ownership of Retirement Accounts in 2022: Amounts in DC Plans and IRAs (Report R48143), Table 1, analysing the Federal Reserve Board's 2022 Survey of Consumer Finances.
Read the first column before the third
The share column is the one that changes what the table means. Among households aged 55–64, 57.0% have a retirement account. The $185,000 median describes those households. The other 43% are not in the median at all — they are not counted as zeroes and averaged in, they are simply outside the calculation.
So the honest sentence is not “the typical household approaching retirement has $185,000.” It is: among households approaching retirement that have a retirement account, the middle one holds about $185,000, and roughly two in five have no such account at all. That is a longer sentence, and a materially different picture.
Why the average is nearly three times the median
A median is the middle household — half above, half below. An average adds every balance and divides. Because balances have a floor at zero but no ceiling, a small number of very large accounts pull an average upward and a median barely moves.
For the 55–64 group the gap is stark: an average of $537,563 against a median of $185,000, a ratio of nearly three to one. Any source quoting the average alone is describing a household considerably wealthier than most. When you see two very different numbers for the same age band, this is usually the whole explanation.
What these figures do not count
“Retirement accounts” in this data means defined contribution plans — 401(k), 403(b), thrift savings, and accounts left behind at former employers — plus IRAs. It does not include:
- Defined benefit pensions. A household with a pension and no 401(k) appears in this table as having no retirement account.
- Social Security, which is the largest single income source for most retired households.
- Home equity, whatever its size.
- Ordinary taxable brokerage and savings accounts, which is where a good deal of retirement money actually sits.
This matters in both directions. It means the table understates what many households have available. It also means a household comparing itself against $185,000 may be comparing a number that includes its pension against one that does not.
How old is this data?
The figures above describe 2022. The Survey of Consumer Finances runs every three years; the 2025 wave was collected during 2025 and results are expected in late 2026.
This is worth knowing because a great many pages carrying a current-year headline are republishing the 2022 numbers without saying so. The vintage of a benchmark is part of the benchmark. When these figures are superseded, this page will say so and carry the new ones.
What a benchmark is actually good for
Not much, on its own. A median tells you where you sit in a distribution; it does not tell you whether your own plan works, because it knows nothing about what you spend, when you plan to stop, what you will receive from Social Security, whether you have a pension, or what your tax picture looks like on the way out.
Two households with identical balances can be in entirely different positions — one spending $50,000 a year with a paid-off house, the other spending $120,000 with a mortgage. The balance is the same. The answer is not.
The more useful question is not how do I compare but how long does what I have actually last, at what I actually spend. That one has arithmetic behind it, and you can run it yourself:
- See how long a balance lasts at a given withdrawal rate, adjusted for inflation.
- The ×25 rule, and the places it breaks.
The views and opinions expressed here are those of The Financial Sciences Company as of the publish date and are provided for informational and educational purposes only. They are not personalized investment, tax, or legal advice. The Financial Sciences Company, LLC is an investment adviser registered with the State of Texas. Registration does not imply a certain level of skill or training. Additional information is available in our Form ADV at adviserinfo.sec.gov.
General educational information, current as of 2026. Not personalized investment, tax, or legal advice — figures and rules change. For guidance specific to your situation, talk to a qualified professional.