Understanding how much the typical American keeps in savings provides valuable context for personal financial planning. Recent data reveals significant variation across age groups, highlighting the importance of looking beyond simple averages.
According to the Federal Reserve’s 2022 Survey of Consumer Finances, average savings balances increase with age, though these figures are influenced by high-value accounts. For those under 35, the average savings sits around $20,540, rising to $41,540 for ages 35-44. The 45-54 age group shows an average of $71,130, while 55-64 year-olds average $72,520. Savings peak for the 65-74 age group at approximately $100,250 before declining slightly to $82,800 for those 75 and older.
However, median figures tell a different story that may be more representative of typical savers. The median savings for those under 35 is $5,400, compared to $7,500 for ages 35-44. The 45-54 age group has a median of $8,700, while 55-64 year-olds show $8,000. Median savings increase to $13,400 for the 65-74 age group, then settle at $10,000 for those 75 and older.
This disparity between average and median savings occurs because extreme values skew the mean upward. A few very large accounts can substantially raise the average without affecting the median, making the median a often more reliable indicator of what most people actually have saved.
When evaluating personal savings goals, it’s important to consider the full financial picture beyond just bank accounts. Retirement accounts, home equity, investments, and other assets all contribute to overall financial health. Additionally, individual circumstances like income stability, health considerations, and lifestyle goals should inform emergency fund targets and savings strategies.
For those seeking better returns on idle cash, high-yield savings accounts currently offer rates above 4% at many institutions. While these provide safety and accessibility, some investors choose to allocate portions of their savings to the stock market for potentially higher growth that can outpace inflation over time, accepting corresponding market risk.