Can You Guess How Much The Average U.S. Worker Ages 21-64 Has Saved For Retirement? Hint —The Latest Number Will Shock You
- Personal Finance
ThePostMaster- 0
- 6 minutes read
Most people assume retirement savings build slowly but steadily over time. Work for decades, contribute a little each year, and eventually the balance looks respectable. The newest national data challenges that assumption in a big way. The median retirement savings for employed Americans ages 21 through 64 is just $955.
That figure comes from the National Institute on Retirement Security’s Retirement in America report for 2026, released this month using U.S. Census Bureau Survey of Income and Program Participation data reflecting balances as of December 2022. The number includes everyone who is working, including millions of people with nothing saved at all. Even when isolating workers who do have money in a defined-contribution account, the median balance reaches only $40,000. Workers closest to retirement age, between 55 and 64, report a median of roughly $30,000.
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Access to Plans Still Determines Who Saves
The report makes clear that the biggest difference between workers who save and workers who do not often comes down to access. Only 63% of workers have a retirement plan offered through their employer, and 62% participate. Nearly half of private-sector workers still have no workplace plan available, leaving many without an easy way to save consistently.
The gaps widen across income and education levels. Workers in the lowest income group contribute about $580 per year on average, while higher earners contribute around $10,000. Workers with a bachelor’s degree participate at far higher rates than those with a high school education or less. Hispanic workers face the largest access gap, while white and Asian workers show higher participation rates.
Even for those who are saving, progress remains slow. Typical employee contributions fall between 5% and 6% of income, with employer matches just under 3%. Using common retirement benchmarks, the median worker has accumulated only about 4% of the savings needed for retirement. Among workers with positive balances, that figure rises to 18%, still far below recommended targets.
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Why Other Retirement Numbers Look Higher
The National Institute on Retirement Security takes a different approach by counting all employed workers and focusing strictly on defined-contribution plans such as employer-sponsored retirement accounts. The goal is to show how much workers are actually accumulating within the current system. The result highlights how far behind most Americans remain, even after decades of work.
For many households, retirement savings account for only about 25% of financial assets, while home equity makes up a larger share. In some lower-income groups, the median value of a vehicle exceeds retirement savings entirely. With Social Security currently providing about half of retirement income for the typical retiree and facing a projected 20% benefit reduction after 2033 without legislative changes, the margin for error is shrinking.
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A Plan Matters More Than a Guess
The takeaway is not that retirement is impossible. It is that guessing is no longer enough. The system rewards people who have access, guidance, and a clear strategy early on. For workers trying to close the gap, understanding contribution rates, investment choices, and realistic timelines matters more than chasing a specific savings number.
That is where a financial advisor can help. Whether someone is starting with $955 or several hundred thousand dollars, a structured plan can turn uncertainty into direction. The goal is not perfection. It is progress that actually matches income, risk tolerance, and retirement goals before time runs out.
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