Average American Savings by Age in 2025 (Are You Behind?)

The median American savings account balance is approximately $8,000. But this number is misleading because it varies enormously by age, and the median is far more useful than the average. Billionaires and millionaires inflate the average so dramatically that it bears no resemblance to most people's reality. Always look at the median.

Here are the 2025 median savings benchmarks by age group based on Federal Reserve Survey of Consumer Finances data. Under 35: median total savings approximately $13,000. Ages 35-44: approximately $27,000. Ages 45-54: approximately $48,000. Ages 55-64: approximately $57,000. Age 65+: approximately $69,000. These figures include savings accounts, money market accounts, and CDs — but not retirement accounts or investments.

Including retirement accounts changes the picture significantly. Under 35: median retirement savings approximately $18,000. Ages 35-44: approximately $45,000. Ages 45-54: approximately $115,000. Ages 55-64: approximately $185,000. The gap between what people have and what financial planners recommend is staggering. A 55-year-old earning $100,000 should have $600,000 saved for retirement but the median is $185,000.

If you are below these medians, here is the realistic action plan. First, automate your savings — set up automatic transfers on payday so savings happen before you have a chance to spend. Second, open a high-yield savings account earning 4-5% instead of the 0.01% your regular bank pays. On $20,000 in savings that difference is $800 to $1,000 per year for doing nothing. Third, increase your retirement contribution by 1% every time you get a raise — you will not miss money you never saw in your paycheck.

The most important insight from this data: most Americans are behind. If you feel like you should have more saved, that feeling is shared by the majority. The solution is not to feel guilty — it is to start now and save consistently. Even small amounts compound significantly over time.

Why the median matters more than the average: the average American savings is approximately $65,000, which is 8x higher than the median of $8,000. This is because a small number of very wealthy people pull the average up dramatically. If Bill Gates walks into a room of 50 people, the average net worth in that room is over a billion dollars — but nobody in the room actually got richer. The median gives you a much more realistic comparison point.

Use our free net worth calculator to see your complete financial picture — assets minus liabilities — and compare to the benchmarks for your age.

Frequently Asked Questions:

Am I behind if I have less than the median? Not necessarily. If you are 25 with $5,000 saved and no debt, you are in a strong position. Context matters — low savings with high-interest debt is concerning, but low savings with no debt and a growing income is fine.

How do I catch up on savings? The two levers are earning more and spending less. Most people find it easier to cut expenses in the short term while working on income growth for the long term.

Should I compare to the mean or median? Always the median. The mean is skewed by outliers and does not represent typical Americans.

Does net worth or savings matter more? Net worth is the better measure of financial health because it includes all assets and all debts. Someone with $10,000 in savings but $100,000 in retirement accounts and no debt is in excellent shape.

What is the fastest way to grow savings? High-yield savings account for emergency fund, maxing 401k match for retirement, and eliminating high-interest debt. These three moves cover 80% of what most people need to do.