40-Somethings' Retirement Savings: Progress or Stagnation?
According to data from the Federal Reserve's Survey of Consumer Finances, Americans in their 40s are more likely to have retirement accounts than previous generations were at a similar age. In 1989, only 50% had such savings; by 2022, that number rose to 61%. However, participation peaked earlier—in 2001—and has since remained largely flat despite policy efforts aimed at boosting retirement savings. Median balances for those with accounts have grown significantly over three decades—from $23,000 in 1989 to about $73,000 by 2022. However, this growth was not consistent and included a sharp decline after the 2007–2008 financial crisis as well as another drop between 2019 and 2022 due to market volatility. While today's 40-somethings have more retirement savings than their counterparts in the late 1980s, progress has stalled compared with earlier parts of this century. The typical balance in 2022 was roughly equivalent to that seen before the financial crisis and does not account for inflation or market fluctuations.
Topics: Federal Reserve data generational comparison retirement savings