How much does the average American have saved for retirement? Nothing. Nothing at all.
What Is The Average Retirement Savings in 2019?
It costs over $1 million to retire at age 65. Are you expecting to be a millionaire in your mid-60s?
If you're like the average American, the answer is absolutely not.
The Emptiness of the Average American Retirement Account
The first thing to know is that the average American has nothing saved for retirement, or so little it won't help. By far the most common retirement account has nothing in it.
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Sources differ, but the story remains the same. According to a 2018 study by Northwestern Mutual, 21% of Americans have no retirement savings and an additional 10% have less than $5,000 in savings. A third of Baby Boomers currently in, or approaching, retirement age have between nothing and $25,000 set aside.
The Economic Policy Institute (EPI) paints an even bleaker picture. Their data from 2013 reports that "nearly half of families have no retirement account savings at all." For most age groups, the group found, "median account balances in 2013 were less than half their pre-recession peak and lower than at the start of the new millennium."
The EPI further found these numbers even worse for millennials. Nearly six in 10 have no retirement savings whatsoever.
But financial experts advise that the average 65 year old have between $1 million and $1.5 million set aside for retirement.