Retirement Savings at Ages 35 to 44—How Do You Really Compare?

How Many People Ages 35-44 Have Any Retirement Savings?

It’s no surprise that age impacts a household’s income, wealth, and ability to save for retirement. Families tend to see earnings and assets increase through midlife, according to data from the Federal Reserve’s Survey of Consumer Finances. For Americans ages 35–44, this is a key time for building financial assets, which include retirement savings.

This stage of life often coincides with peak career growth, but there’s also financial pressure from all sides, from housing to child care to debt. Despite that, people in this age range appear to be prioritizing retirement savings. The Fed’s survey shows that 61.5% of households in the 35-44 age range had money in retirement-specific accounts in 2022, the most recent year for which data is available. That’s second only to the 45-54 age group, according to the survey, and it’s the highest percentage for the 35-44 age group since 2001. 

How Much Retirement Savings Do People in This Age Range Have, on Average?

For those in the 35-44 age group who reported having retirement accounts in 2022, the median balance was $45,000. (Medians are used instead of averages to reduce the influence of unusually high or low incomes.) That figure is greater than for the 18-35 age group but is well below the balances for the older age groups surveyed. 

Additionally, it’s the lowest median balance for this age group since 2010—and the only age group to see a significant decline in recent years. The 35-44 age group’s median balance was $69,550 in the 2019 survey. 

“This group stands out because participation remains solid, but median retirement balances have lagged,” said Eric Ludwig, PhD, CFP®, RICP® and director of the Center for Retirement Income at The American College of Financial Services. “Income growth during this period has been uneven, with gains concentrated among higher earners, while housing affordability, student loans, and child care costs have absorbed much of the rest.”

How to Build Retirement Savings

While $45,000 may sound substantial, it could amount to just a few years of retirement income without continued growth. So how can people in this age group make meaningful progress toward their retirement goals?

One reason balances lag during this stage of life is how quickly spending can rise alongside income. People in their 30s often discover that lifestyle creep is more dangerous than market crashes, Ludwig said. “Every raise presents a choice: Buy the life you think you ‘deserve’ or buy the freedom you don’t yet know you need,” he said.

Those who realize they don’t need to upgrade their lifestyle each time they receive a raise have “cracked the code,” Ludwig said, and often make the most progress toward long-term savings.

“This is often the decade where people feel behind, and the data support that feeling,” Ludwig said. “Retirement saving needs to become more intentional here, even if balances don’t yet look impressive.” 

Ludwig suggests looking at your retirement progress from the lens of expenses rather than income. “Retirement isn’t about replacing a paycheck,” he said. “It’s about covering spending.” Considering that, he recommends aiming for retirement savings equal to two to three times your annual household expenses by your mid-40s.

Some ways to prioritize saving for retirement can include:

While this phase of life can feel financially stretched, consistent and intentional saving can make a meaningful long-term difference.