Most American couples have this amount of retirement savings. Where do you stack up?

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SmartAsset: Average retirement savings of married couples by age

A recent study from Oily profession experts 40% of respondents say they fear retirement more than death. Nearly nine out of 10 people answered that their biggest fear of retirement is not having enough income. For married couples, planning for retirement for two can be complicated. The amount they will need will depend on their financial circumstances. Here’s a breakdown of average retirement savings for couples by age.

a financial expert It can help you create a financial plan for your retirement needs and goals.

What is the average retirement savings by age?

Unfortunately, many Americans do not save enough money for their future. In fact, 25% of Americans don’t have it Retirement savings Absolutely according to Report from PricewaterhouseCoopers. Among those who have not saved enough for retirement, EBRI Research It is estimated that households as of January 2020 saved $3.68 trillion less than they should have in their retirement accounts.

last Study by the Vanguard Calculate average 401(k) balances by age. The table below breaks down the mean and median balances by age group:

401(k) Balances by Age Average Age 401(k) Average Balance 401(k) Balance <25 $6,718 $2,240 25-34 $33,272 $13,265 35-44 $86,582 $32,664 45-54 $161,079 $56,722 55-64 $23 2,379 $8 4,714 65+ $255,151 $82,297

On average, a person under 25 saves less than $7,000, while a person between 55 and 64 saves just over $232,000. This data breaks down individual balances by age group, but for married couples, goals will vary depending on the age of the couple, household income, and whether there is a single earner or dual earner.

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Retirement savings standards for married couples

SmartAsset: Average retirement savings of married couples by age

SmartAsset: Average retirement savings of married couples by age

Financial experts say a 60-year-old couple with a dual income of $75,000 a year should have seven times their family income in their retirement account. This doubles to a total of $525,000 saved. By contrast, a 65-year-old single-parent couple making $75,000 a year would have saved seven and a half times their household income, adding up to $562,500 in their retirement account.

The table below explains the savings goals based on the data assumptions he provided T.Rowe Price Investment Management Company. You’ll see in parentheses how many times you should take your current household income:

Household Income Married, double income at age 55 Married, dual income at age 65 Married, single income at age 55 Married, single income at age 65 $75,000 $412,500 (5.5x) $675,000 (9x) $337,500 (4.5x) $562,500 ( 7.5x) $100,000 $600,000 (6x) $1 million (10x) $500,000 (5x) $850,000 (8.5x) $150,000 $975,000 (6.5x) $1.575 million (10.5x) $900,000 (6x) 1.500 Million $ (10x) $200,000 $1 .300 million (6.5x) $2,200 million (11x) $1,400 million (7x) $2,300 million (11.5x) $250,000 $1,700 million (7x) $2,875 million (11.5x) $1,875 million (7.5x) $3.125 million (12.5x) Why you shouldn’t rely on Social Security alone

Starting January 2022, it will be available to retired spouses who receive… Social Security benefits He collected an average of $2,753 per month. This amount is equivalent to what you could earn through a minimum wage job. Therefore, for many American couples, this may not be enough to maintain their lifestyle once they enter their golden years.

And a lot more than that Older Americans carry more debt, which will eat into their Social Security income. So when you create a file Retirement plan As a couple, financial experts will advise you to evaluate your financial situation and make adjustments accordingly.

No matter your income level, determining your financial situation is a smart way to prepare for retirement. This big picture perspective will help you be more intentional about how much money you put into your retirement savings and avoid a potential income gap later in life if your needs outweigh your savings.

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SmartAsset: Average retirement savings of married couples by age

SmartAsset: Average retirement savings of married couples by age

When looking at average retirement savings for couples by age, the data is alarming. Even if you save more than the recommended amounts and plan to apply for Social Security benefits, you may still have enough to live the life you want after retirement. Often treated by financial professionals Retirement savings As a destination with many checkpoints along the way. While some experts advise you to save at least one year of your household income by the time you reach age 30, it doesn’t hurt to save more.

When you are Ready to retireIt’s a good benchmark to aim for at least 9x to 11x of your household income in savings. But because your needs will differ as a couple, you’ll need to evaluate your financial situation and make adjustments accordingly. A good rule of thumb is to save at least 10% to 15% of your household income each year.

Tips to help you save for retirement

  • According to the Federal Reserve, 60% of those with self-directed retirement accounts are not confident in their investment decisions. If you are one of them, why not hire a financial advisor? Free SmartAsset tool It matches you with up to three financial advisors serving your area, and you can interview your advisors at no cost to determine which advisor is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, let’s start.

  • Relying on Social Security benefits alone likely won’t fully support your current lifestyle. But benefits can certainly help cover your living expenses in retirement. SmartAsset’s Social Security Calculator It will help you estimate how much interest you can expect.

  • And if you want to know if you’re saving enough for retirement, SmartAsset’s free retirement calculator It can help you determine how much you will need.

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