Fed Puts Median Retirement Savings at $185,000 for Ages 55-64, Covering 2.5 Years of Spending
Updated
Updated · 24/7 Wall St. · Jun 30
Fed Puts Median Retirement Savings at $185,000 for Ages 55-64, Covering 2.5 Years of Spending
2 articles · Updated · 24/7 Wall St. · Jun 30
Summary
$185,000 is the median retirement balance for U.S. households aged 55 to 64, while average annual spending of $78,535 means that nest egg would cover only about 2.5 years on its own.
The shortfall looks starker against common benchmarks: Fidelity says households should hold about $600,000 by age 60 on a $75,000 salary, and its average 401(k) balances near $245,000 still sit well above the median.
Income from that balance is limited—about $8,325 a year in 10-year Treasuries at 4.50% or $7,400 under a 4% withdrawal rule—leaving Social Security to carry most retirement income.
Building a bigger cushion has become harder as the personal savings rate fell to 3.9% in Q1 2026 from 6.2% two years earlier, spending outpaced income growth, inflation rose, and lower policy rates trimmed cash yields.
The report points to catch-up 401(k) contributions—up to $35,750 for ages 60 to 63 in 2026—and delayed Social Security claims, which can raise benefits about 8% a year until age 70.