Median Retirement Savings for Americans in Their 40s Fall Below National Benchmarks
According to the latest Federal Reserve data, the median household in its 40s has only $37,700 in financial assets—excluding home equity—which is significantly below recommended retirement savings benchmarks. While the average balance for this age group is much higher at nearly $277,538 due to a small number of wealthy households skewing the data, most individuals hold relatively modest amounts in cash and limited direct stock or bond ownership. About 61% of households aged 40–49 have retirement accounts. Among these, the median balance is $73,000 with an average of nearly $200,000. However, when including those without any savings, the overall median drops to just $13,000—far below Fidelity's suggested targets for this age group. Vanguard and Fidelity data also show that 401(k) balances remain well short of long-term retirement goals. Despite these challenges, there are signs of progress among Gen X workers (ages roughly 46–61), who have increased their average savings rate to over 15% of income. Additionally, contributions to IRAs rose by 25% year-over-year in Q4 2025.
Topics: financial assets investment portfolios retirement savings