While many Americans struggle to save for retirement, the top 1% amass significant nest eggs. This raises the question: How much do they save, and how does it compare to the national average?
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Data from DQYDJ, using Federal Reserve statistics, highlights that the average retirement age in the United States hovers around 60, with a median age of 62. The statistics also reflect the ongoing economic activities of people who, while reaching retirement age, may continue to work or gradually use their savings.
The overall retirement savings for the wealthiest 1% stand at approximately $2.3 million. When considering a broader definition of retirement assets, the figure escalates to $5 million.
Here is a breakdown of the estimated top 1% retirement savings by age group:
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18-24 years: $150,000
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25-29 years: $365,000
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30-34 years: $365,000
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35-39 years: $730,000
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40-44 years: $1,234,600
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45-49 years: $1,397,000
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50-54 years: $2,311,000
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55-59 years: $3,105,000
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60-64 years: $3,550,000
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65-69 years: $4,574,000
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Notably, savings start to decline for those in the 70-plus age bracket, indicating a shift from saving to spending during retirement:
According to a report from The Motley Fool using Federal Reserve data, the median retirement account balance for all working-age households (aged 25 to 64) in 2022 was closer to $87,000.
This shows the significant disparity between the top 1% with millions saved and the average American unable to reach even a six-figure account balance.
Some factors contributing to this gap include:
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Cost of living: The rising cost of living, particularly housing, can force many Americans to prioritize basic needs over saving for retirement. This squeeze on discretionary income disproportionately affects low- and middle-income earners.
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If you’re fortunate enough to find yourself among the top earners, consider maximizing contributions to retirement accounts, exploring investment opportunities that align with your risk tolerance and consulting a financial adviser to ensure your wealth continues to grow and your retirement goals are met.
Even if the figures for the top 1% seem out of reach, it’s important to remember that everyone’s financial situation is unique. You can still take to improve your retirement outlook. Every dollar saved now grows over time thanks to compound interest.
Consulting a financial adviser can also be helpful for those trying to catch up. They can assess your circumstances, create a personalized plan that considers your income, risk tolerance and retirement goals, and guide you toward making the most of your financial resources. By taking these proactive steps, you can begin building a secure and comfortable retirement future, regardless of where you stand on the economic ladder.
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This article Are You On Track To Join The Top 1% In Retirement Savings? Here’s How Much They Have At Every Age originally appeared on Benzinga.com
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
