As soon as you’ve got hit age 50, there is a good probability you’ve got been saving cash for years, if not many years. However how a lot ought to you have got stashed away by this age? Everybody’s monetary scenario is exclusive, which makes the perfect sum of money it’s best to have saved troublesome to pinpoint. Nonetheless, understanding how your friends are doing may help you identify if you happen to’re heading in the right direction.

In 2023, retirement plan contributors between the ages of 45 and 54 had a mean stability of $168,646 and a median stability of $60,763, in line with Vanguard’s annual «How America Saves» report.

The Common 50-Yr-Outdated’s 401(okay)

Vanguard, Constancy, and Empower usually report average retirement account balances by age, however all of them report on totally different numbers. Here is what they’ve discovered:

• Vanguard’s 2023 report reveals that retirement plan contributors aged 45 to 54 had a mean stability of $168,646. The median—half of the savers had greater than this quantity of their accounts, and half had much less—was considerably decrease at $60,763.
• Empower, utilizing information from its monetary administration device as of Dec. 31, 2024, reported that the typical 401(k) balance for somebody of their 50s is $592,285, whereas the median stability was $252,850.
• Constancy Investments stated in its «Constructing Monetary Futures» presentation printed within the third quarter of 2024 that the typical stability for Generation X—these born between 1965 and 1980, together with 50-year-olds—is $191,900.

How A lot Retirement Financial savings You Ought to Have by Age 50

The sum of money it’s best to have saved by age 50 depends upon your targets and life-style. Nevertheless, there are some common pointers you may observe. Constancy recommends having six occasions your wage saved by age 50, whereas T. Rowe Value suggests having three-and-a-half to 6 occasions your preretirement gross income saved.

If you hit age 50, retirement is (ideally) on the horizon, so it is a good time to think about the 80% rule. This rule suggests it’s best to goal to avoid wasting sufficient to interchange 80% of your preretirement. For instance, in case your wage is $80,000, you’d need to have saved $64,000 for annually of retirement to keep up your life-style. A financial advisor may also assist decide how a lot you’ll want to save primarily based in your particular monetary scenario and targets.

Ideas for Catching Up on Retirement Financial savings

When you’re in your 50s and concern that you simply’re behind in your retirement financial savings, you are not alone. Roughly 20% of adults age 50 and older don’t have any retirement financial savings, and 61% are fearful they won’t have enough money to support them in retirement, in line with a survey from AARP printed in 2024. When you’re involved, listed here are three suggestions for catching up on retirement financial savings.

• Max out your 401(okay). In case your employer gives a retirement financial savings plan, take full benefit. An employer-sponsored retirement financial savings account comes with tax benefits and, most occasions, an organization match. Even if you happen to’re late to contributing, maxing out your 401(k) annually for the remaining years of your working years could make a giant distinction.
• Contribute to a Roth IRA. A Roth individual retirement account (IRA) helps you to contribute after-tax {dollars} that you would be able to withdraw tax-free in retirement. So long as your modified adjusted gross income (MAGI) does not exceed the boundaries set by the IRS, you may contribute to those along with your 401(okay).
• Faucet into your property fairness. Properties might be greater than only a place to reside: They will additionally supply liquidity in retirement. A Home equity line of credit (HELOC), home equity loans, and reverse mortgages are standard methods for deriving earnings from your own home.

The Backside Line

How a lot it’s best to have saved by age 50 varies primarily based in your private monetary scenario, targets, and life-style. However having three-and-a-half to 6 occasions your preretirement gross earnings saved is an effective benchmark. When you’re late to saving, take into account maxing out your 401(okay), contributing to a Roth IRA, and exploring choices to faucet into your property fairness.