retirement account <\/a>balance is the figure that sits right in the middle of all available data. In other words, 50% of Americans have larger balances and 50% have smaller balances.<\/p>\nThe mean retirement account balance is the mathematical average of all account balances, calculated by dividing the total amount of assets in retirement accounts by the number of accounts. This average typically skews much higher than the median balance, as large balances at the top can dramatically inflate it.<\/p>\n
According to the Federal Reserve\u2019s most recent Survey of Consumer Finances, published in October 2023, 54.3% of American families had retirement accounts in 2022. Among those who did, here were the average reported balances:<\/p>\n
The median balance was $86,900.
\nThe mean balance was $334,000.<\/p>\n
That enormous gap \u2014 from $86,900 to $334,000 \u2014 provides a clear picture of how high-balance savers meaningfully raise the \u201caverage\u201d account balance. Depending on what type of comparison you\u2019re trying to make, the median retirement account balance might be the more appropriate figure to use.<\/p>\n
How Much Do the Top 10% Hold?<\/p>\n
There\u2019s no definitive study showing exactly how much the top 10% of savers in America have in their retirement accounts. But data from the Congressional Research Service allows for a fair approximation.\u00a0<\/p>\n
According to CRS data, which is based on the Fed\u2019s SCF:<\/p>\n
4.6% of American households had more than $1 million in retirement accounts
\n4.7% had $500,000 to $1 million in retirement accounts<\/p>\n
Add those two figures together and they show that about 9.3% of households have $500,000 or more in their retirement accounts. This can act as a rough proxy for the \u201ctop 10%.\u201d<\/p>\n
Considering the countless headlines suggesting that Americans \u201cneed\u201d at least $1 million in their retirement accounts, the data shows that less than 5% of households actually reach that lofty level.\u00a0<\/p>\n
Comparisons With the \u2018Average\u2019 Savers<\/p>\n
The SCF data allows for a clear comparison between average savers and the top 10%:<\/p>\n
Average (median) retirement balance among account holders: $86,900
\nTop 10% threshold (approximate): $500,000+ in retirement accounts\u00a0<\/p>\n
The typical American household with retirement savings has less than $90,000 set aside. By contrast, households in the top 10% often hold half a million dollars or more, with many account balances exceeding $1 million. In short, the top 10% of savers hold at least 5x to 10x more in their account balances than the average American.<\/p>\n
How To Reach the Top 10%<\/p>\n
Earning a high salary and keeping your expenses low can help you save more. But even modest earners can find a way to build a seven-figure nest egg.<\/p>\n
Research from the Federal Reserve, Vanguard, Employee Benefit Research Institute and the Congressional Research Service consistently shows that households with the largest retirement balances share these characteristics:<\/p>\n
They save consistently for longer: Time is the multiplier. Starting early matters, even with modest amounts, because compounding has more years to work.
\nThey contribute at higher rates, often capturing the full employer match: Employer contributions can be a major accelerant if fully utilized.
\nThey stay invested through volatility: The top savers are more likely to maintain long-term allocations that participate in equity growth rather than sitting in cash.
\nThey avoid \u201cleakage\u201d: Loans, early withdrawals and cash-outs at job changes can erase years of progress. Rollovers, when done carefully, keep compounding intact.<\/p>\n
These behaviors allow compounding to work uninterrupted over decades, producing dramatically larger balances than those of typical savers.<\/p>\n
The Bottom Line<\/p>\n
If your retirement account balance is about $87,000, you\u2019re roughly near the median across America, according to SCF data. But to be in the top 10%, you likely should target a balance of at least $500,000. Saving consistently over time, remaining invested and avoiding withdrawals are all ways you can help yourself reach that goal.<\/p>\n","protected":false},"excerpt":{"rendered":"Eva-Katalin \/ Getty Images\/iStockphoto Commitment to Our Readers GOBankingRates’ editorial team is committed to bringing you unbiased reviews…\n","protected":false},"author":2,"featured_media":484937,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[112214,28,17299,147,530,1666],"class_list":["post-484936","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-accounts-and-plans","tag-business","tag-gobankingrates","tag-personal-finance","tag-personalfinance","tag-retirement"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/484936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=484936"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/484936\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/484937"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=484936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=484936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=484936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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