Are Your Savings on Track? Fed Data Highlights How Much 45–54-Year-Olds Have Saved

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What the Average American Has Saved by Age 45-54 (and How You Stack Up)

As you approach or move through your 50s, how do your savings measure up to those of your peers? The amount you’ve saved at this stage can significantly impact your retirement plans—and with the right strategies, you can still boost your balance.

At this stage of life, you may have fewer immediate things competing for your money than in the past. For instance, if you have children they may be older, so you may face fewer family-related expenses like college tuition or a child’s wedding.

Whatever your circumstances, they impact your ability to save money. Age is one determining factor, and it’s not surprising that the older you are, the more likely you are to have more money saved. According to the Federal Reserve’s latest Survey of Consumer Finances, the median amount in bank accounts in 2022 (the most recent data available) ranged from $5,400 for those under 35 to $13,400 for those ages 65–74. Those aged 45–54 had a median of $8,700 in the bank.

In addition to bank account balances, the average saver aged 45–54 has these assets:

• $14,000 in CDs
• $1,800 in savings bonds

This age group also holds a median of $276,000 in directly held bonds and stocks. However, less than 1% of this group actually holds bonds and only 23% holds stocks, so these values may be skewed. Combined with the amounts above and $8,700 in the bank, the total is $300,500. The median amount in retirement accounts for people in this age group is $115,000.

Why You Should Keep Saving as Retirement Approaches

Looking ahead, Americans aged 45–54 should continue to save when possible and should increase savings in three main areas, according to financial planner Christine D. Moriarty, CFP: 

1. Increase retirement savings: Take advantage of the fact that people over age 50 can make additional contributions to 401(k) and individual retirement accounts in what are known as “catch-up contributions,” Moriarty said. 
2. Build savings for the first year of retirement: Setting aside some easily accessible money for the first year after working provides greater flexibility for new retirees who may want to take on new hobbies or relocate, Moriarty said.
3. Create a savings bucket for the later years: This is critical for needs that may surface in later years. “If they need care, they will need cash if they do not have long-term care insurance,” Moriarty said.

Cut Costs and Boost Your Retirement Savings Now

In addition to building savings for the first year of retirement, it’s important to pay down debt, starting with the highest-interest debt first, such as credit card balances. It’s also key for Americans in this age group to not spend disposable income you’ll need later, for instance, by supporting your now-adult children. More parents “have to say ‘no’ to their kids more,” Moriarty said.

Preparing for your first year of retirement also means considering how you want to spend your time, so you’re ready for that transition. If you want to travel during retirement or take up a new hobby, try it now while you still have income, Moriarty said. Then you’ll know if you’ll find that fulfilling, or if a new geographic area is right for you before moving there. “This will help you avoid making wrong choices from a lifestyle perspective but also from a financial standpoint,” she said.

How to Adjust Your Savings Allocations for Maximum Growth

Just as savings balances change as people age, how that money is allocated may need to shift, too. “Allocation of stocks and bonds needs to be appropriate for your age and goals,” Moriarty said. Things change, and what worked when you were in your 20s won’t work now.

She offers these tips when reviewing allocations:

1. Make sure you have a mix of different options. 
2. As you age, you want your stocks and investments to be more conservative. People in this age range “only have 10 to 15 years to recoup any of their investments,” she said.
3. If you have savings bonds, check to see if they are still earning interest. If they have matured, cash them and put the money elsewhere so it’ll work for you.
4. When you’re saving cash for future medical expenses or other needs, put it somewhere that’s easy to access and earns high interest—such as a high-yield savings account or a money market account that’s with a brokerage, she said.

There’s no set way to allocate savings for retirement, Moriarty said. Ask yourself if your money is working for you in the best possible way, and explore the alternatives periodically to stay on top of the latest opportunities.

Boost Your Savings Balances With Top-Earning Accounts

As you’re looking to diversify, consider high-yield savings accounts and certificates of deposit (CDs) as places to put your cash.

A dozen of the top high-yield savings accounts pay up to 5.00% APY. These accounts offer a stellar return while letting you deposit and withdraw whenever you like. Note, however, that their rates are variable, meaning they can change at any time.

To guarantee a great rate for a stretch of time, consider allocating a portion of your savings to a top-paying CD. In exchange for committing your money for a set period of time—typically between 3 months and 5 years—you can earn a locked-in rate for the full term. The best nationwide CDs right now offer guaranteed APYs as high as 4.45% into 2026 and beyond.