Average Savings By Age 25, 30, 35, 40, And Beyond

Average savings by age

Whether you're asking "How much money should I have saved by 25" or "How much should I have saved by 40" saving for your future is always critical. So, learning about the average savings by age can help you size up your finances to see if you are on the right track. 

Knowing where you stand can make sure you are on target for your retirement goals as well. Ready to find out more about the average savings by age?

In this article, we take a closer look at the numbers. We also highlight the disparities when it comes to minority demographics. But first, let's discuss the importance of savings!

Why saving at any age is important

Whether you are just starting out or well into your financial journey, the most important thing you can do is to consistently tuck away funds for your long-term financial stability.

If you aren’t saving anything for your future, that’s likely a sign that you need to rework your budget or pursue income-boosting opportunities. 

Keep in mind that everyone has a different path to financial success. Some start saving early, while others make up ground later on.

With that, these averages are in no way a measure of your future financial success. And you likely have unique savings goals that may mean you are saving more or less than others at your age.

For example, you may know that you want to retire to a low cost of living area. So, you may decide to save less than someone that is planning to retire in an expensive city.

Average savings by age: How much should you have?

So, what are the average savings by age? We’ve broken down the numbers below based on the Federal Reserve’s data from 2019 about financial asset balances by age group.

These numbers reflect the total amount of liquid assets for savings based on age brackets. These financial assets include bank accounts and investment portfolios.

How much money should I have saved by 25?

At 25, you are just starting out your financial journey. You may be focused on learning how to budget and perhaps focused on paying off student loans as you start your career. 

According to the study, the Federal Reserve found that people under the age of 35 had an average savings of $34,780. But since you are on the younger side of this large age bracket, you might have considerably fewer savings. And that’s okay!

Now is the time to start saving. When you are 25, time is really on your side. So, choosing to set aside savings and invest now will pay off big time.

How much money should I have saved by 30?

Asking yourself, “How much should I have in savings at 30?” According to Fidelity, you should aim to save at least 1x your salary by 30.

Suppose you make $50,000 per year. By this logic, you should have at least $50,000 saved at 30. The Federal Reserve study found that people under the age of 35 had an average savings of $34,780.

Since the data isn’t broken down any further, it is difficult to say how much more 30 years old have saved than 25-year-olds.

But on your 30th birthday, you might be focused on different financial goals. For example, you might be saving up to buy your first home. Or setting aside funds for the children you hope to have.

With this in mind, the answer to "How much money should I have saved by 30" may differ. Because 30-year-olds will likely need to have a bit more saved.

How much savings should I have at 35?

Curious about "How much savings should I have at 35?" The Federal Reserve found that people between the age of 35 and 44 had an average savings of $170,740.

At age 35, you might not have quite that much saved up. But you’ll likely have some bigger savings goals on the horizon. Maybe you are starting to think about retirement. Maybe you are working to build your career for long-term financial earnings.

According to Fidelity, you should have twice your annual salary saved at 35. Whatever you do at 35, taking saving more seriously is a great idea.

How much should I have saved by 40?

At age 40, you might be closer to the average savings of $170,740 that people between the age of 35 and 44 had in 2019. Fidelity recommends having at least three times your annual salary saved at 40.  

In addition to saving for your own future, you may be preparing to cover the cost of college for your children. Additionally, creeping closer to retirement should encourage you to save more while your earnings are hitting your potential career peak.

How much should I have saved by 50?

By age 50, you’ve likely had more time to build your financial assets. Of course, most people have to hit pause on their savings goals at some point. But hopefully, you’ve been able to save on at least a semi-regular basis. Fidelity recommends having six times your annual salary saved at age 50.

According to Federal Reserve data, people aged 45 to 54 had an average of $507,660 in financial assets. That sharp increase might be due to an increased focus on paying for an extended retirement.

How much should I have saved by 60?

Based on Federal Reserve data, Americans aged 55 to 64 had an average of $570,250 in financial assets. But Fidelity recommends that you have eight times your annual salary saved at age 60.

Since the median household income was $69,560 in 2019, those numbers don’t quite stack up. Most Americans in their 60s will have to make up ground in terms of saving for their retirement. 

When you’re 60, the traditional retirement age of 65 is just around the corner.  In the best-case scenario, you’ve been saving for retirement for quite a while. But if not, now is the time to tuck funds away before you want to stop working or are unable to continue working.

Minority demographics and average savings by age

While the statistics we cover below represent the averages across age groups, we cannot ignore the stark disparities among minority communities in terms of financial assets. According to data from the Federal Reserve, minority communities have significantly smaller financial assets.

In the Federal reserve study we reference throughout this article, people that identified as White or non-Hispanic had an average of $481,430 in financial assets.

In contrast, people that identified as Black non-Hispanic had an average of $68,800 in financial assets. While people that identified as Hispanic had an average of $50,390 in financial assets.

That said, with increased access to financial literacy and focused intention, this narrative can be changed. This is part of our mission here at Clever Girl Finance.

How to set savings goals

So, now you have an idea of how much the average savings by age is. No matter how old you are, you should have savings goals. Of course, your savings goals will change over time. But it is critically important to set up savings goals and do your best to stick to them.

Luckily, there are no rules when it comes to setting savings goals. You might set up a savings goal to pay for your next vacation. Or you might decide to save for early retirement. Whatever your savings goals are, breaking them down into manageable chunks that you can visualize is helpful.

For example, let’s say that you want to save $1,100 to cover your holiday shopping by December. If you start in January, you’ll need to set aside $100 each month to reach your goals.

You can use the same principle for bigger goals. Suppose you want to buy a house with a $10,000 down payment in 4 years. You’ll need to set aside $2,500 each year to meet your goal. The sky is the limit when setting savings goals! Don’t let anything hold you back from setting big savings goals that align with your values.

Need some help setting financial goals? Here’s where you can get started. 

How are you comparing to the average savings by age?

Whether you are starting out at 25 or heading towards retirement at 65, regularly saving is key to building a bright financial future.

Although these averages are nice benchmarks to consider, your journey will always look different than average. After all, personal finance is a unique journey for everyone.

If you need help jump-starting your savings goals, check out our free savings challenges to get the ball rolling.

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