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Key Takeaways
- No age group has saved even 25% of widely used retirement benchmarks.
- Workers ages 45 to 54 are the furthest behind relative to savings targets.
No age group has saved even a quarter of what experts recommend, according to a new analysis from the National Institute on Retirement Security (NIRS).
The nonprofit examined U.S. Census data for workers ages 21 to 64 and compared their actual retirement savings to widely used benchmarks published by Fidelity. The result: Even Americans approaching retirement are far short of recommended targets.
How Much Workers Have Saved—Compared With What Experts Recommend
The NIRS study analyzed U.S. Census Survey of Income and Program Participation (SIPP) data, examining defined contribution (DC) retirement savings such as 401(k)s and IRAs, as well as total net worth.
Researchers compared actual balances to Fidelity’s income-multiple benchmarks. Fidelity’s age-based guidelines suggest workers aim for this much in savings:
- Age 30: About equal to your annual income
- Age 35: Twice your annual income
- Age 40: Three times your annual income
- Age 45: Four times your annual income
- Age 50: Six times your annual income
- Age 55: Seven times your annual income
- Age 60: Eight times your annual income
The benchmarks are rough targets—but every age group falls short by a wide margin.
Why This Matters
If most workers are far behind widely cited benchmarks, it may signal structural gaps—not just individual missteps. Understanding where you stand can help you adjust your strategy while time is still on your side.
Why Workers in Their Peak Earning Years Are Furthest Behind
Workers ages 45 to 54 are the furthest behind. Despite being in their peak earning years, they’ve achieved just 16% of their savings target through DC retirement accounts.
Here’s how defined contribution retirement wealth and total net worth compared with savings targets by age. The data below shows median percentages:
Retirement account balances are low relative to benchmarks, but total net worth is significantly higher. Still, for those aged 45–54, retirement-specific savings lag even more than for younger peers.
What’s competing for dollars?
- Mortgage payments
- Children’s college tuition costs
- Caregiving responsibilities
- Consumer or student debt
- Lifestyle inflation during peak earning years
Even high earners may struggle to prioritize long-term savings when short-term obligations feel urgent.
Tip
Higher salaries don’t guarantee higher retirement balances. Without deliberate raises to your contribution rate, spending tends to rise as fast as income.
What To Do If You’re Behind on Retirement Savings
Falling short doesn’t mean retirement is out of reach, but it means adjusting now.
Workers 50 and older can make catch-up contributions—an extra $8,000 to a 401(k) in 2026.
Maximizing the employer match is another critical step. Failing to capture a full match is effectively leaving part of your compensation on the table. For workers without access to an employer-sponsored plan, some states now offer auto-IRA programs that automatically enroll eligible workers into retirement savings accounts.
Even for those who start later in life, compounding still matters. Increasing contributions, consolidating accounts, or adjusting asset allocation within a diversified strategy can meaningfully boost long-term outcomes.
