Even in peak earning years, many Americans nearing retirement have little saved for the future.
Credit: Vladimir Vladimirov / Getty Images Key Takeaways
Just 57% of Americans ages 55 to 64 have retirement accounts—meaning 43% have no dedicated retirement savings.
Among those with retirement accounts, the median balance is $185,000—an amount that may fall short of retirement expenses.
Retirement readiness varies widely, with outcomes shaped by income, access to workplace plans, and how long you’ve been able to save.
How Many Americans Ages 55–64 Have Any Retirement Savings at All
Many Americans nearing retirement may not be financially prepared for it. The Federal Reserve’s Survey of Consumer Finances shows that just 57% of households headed by someone between the ages of 55 and 64 had money in retirement-specific accounts in 2022, the most recent year for which data is available—meaning 43% had none.
No retirement savings
Even beyond retirement accounts, gaps remain: A 2024 AARP survey found that 20% of adults age 50 or older have no retirement savings of any type.
Households in their mid-50s to mid-60s are typically in their peak earning years, when income and net worth are often at their highest. A household’s income, wealth, and ability to save for retirement are closely tied to age, with families generally seeing assets grow over time as they approach retirement, according to the Fed’s data.
Even at this stage, many people aren’t prioritizing—or aren’t able to maintain—retirement savings. Some households may be retiring earlier than planned or shifting assets as they prepare for income planning, while others have simply not accumulated enough over time or lacked consistent access to workplace retirement plans.
“Many households are consolidating accounts, retiring earlier, or shifting assets in anticipation of income planning,” said Eric Ludwig, director of the Center for Retirement Income at the American College of Financial Services. “Others never fully accumulated [their retirement savings] and are quietly opting out.”
Why This Matters to You
Many Americans nearing retirement don’t have savings in dedicated retirement accounts , even during their peak earning years. Understanding where this age group stands can help you gauge whether your own savings are on track.
How Much Americans in This Age Group Have Actually Saved
Among Americans ages 55 to 64 who have retirement accounts, the median balance is $185,000, according to the Federal Reserve. (The median is the midpoint, meaning half of households have more saved and half have less.)
That amount is higher than the balances held by younger households but below what older retirees report, highlighting how savings often peak after age 65.
While retirement savings tend to increase with age, higher balances don’t necessarily translate to greater financial security.
“Two households of the same age can have very different retirement prospects depending on asset ownership, housing exposure, and access to workplace plans,” said Ludwig. “Rising balances also do not guarantee rising security if those balances are highly dependent on market levels” or concentrated in hard-to-access assets.
As retirement approaches, this stage often marks a shift from accumulating savings to figuring out how to turn those savings into income. One way to begin that process is by first estimating expected annual expenses, then subtracting Social Security and other guaranteed income, and finally multiplying the remaining gap by 20 to 25 years.
How to Catch Up on Retirement Savings in Your Final Working Years
If you’re nearing retirement and still building savings, reviewing your plan and making targeted adjustments can help close gaps, said Mindy Yu, CIMA, senior director of investing at Betterment. Aligning your strategy with your income needs, risk tolerance, and timeline can help keep you on track.
Yu suggests using retirement planning tools or working with a financial advisor to reassess assumptions and identify gaps. For those still able to save, she points to several ways to increase contributions or free up cash flow:
Review your expenses: Look for opportunities to cut discretionary spending, such as dining out and unused subscriptions.
Reduce debt: Paying down high-interest balances, such as credit card or personal loan balances, can free up funds for retirement savings.
Maximize contributions: Increase contributions to workplace plans or IRAs, especially if an employer match is available.
Retirement readiness varies widely, but even those nearing retirement may still have time to strengthen their financial position with targeted changes in the final working years.
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