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According to 2022 Federal Reserve data, only 57 percent of Americans between the ages of 50 and 60 have a retirement account, a participation rate that is near its lowest level in 30 years.
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Among households with at least one retirement account, the median balance for this age group was $185,000, according to the Fed.
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More recent data from Empower put the median 50-year savings at $253,454 and the median 60-year savings at $186,902.
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Retirement readiness varies widely at this stage, shaped by housing wealth, access to workplace plans and exposure to market changes.
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According to a 2024 AARP survey, 1 in 5 adults 50 and older have no retirement savings.
The Federal Reserve’s Survey of Consumer Finances shows that 57 percent of households headed by someone ages 55 to 64 had money in designated retirement accounts in 2022, the most recent year for which data is available. Although this share is higher than in 2019, it is among the lowest participation rates for this age group since 1995, according to the survey. And in a 2024 AARP survey, 1 in 5 adults age 50 or older had no retirement savings at all.
A household’s income, wealth and ability to save for retirement are closely related to age. Families tend to see assets grow over time, with earnings and net worth often peaking in the years leading up to retirement, according to Fed data.
For households in their 50s and 60s, median income and net worth are typically near their highest levels, reflecting decades of earnings, savings and asset accumulation. (The median is the midpoint of all reported balances, meaning half the households saved more and half had less. It is used to avoid unusually small or large accounts skewing the average.)
This stage of life can bring with it more financial flexibility than earlier years, as expenses related to raising children or paying for college often decrease. Even so, many people in this age range do not prioritize – or are unable to maintain – retirement savings. Some households may retire earlier than planned or shift assets while preparing for income planning.
“Many households are consolidating their accounts, retiring early or shifting assets in anticipation of income planning,” said Eric Ludwig, director of the Center for Retirement Income at the American College of Financial Services. “Others never fully accrued [their retirement savings] and quietly quit.”
Many Americans in their mid-50s and early 60s are close to retirement, but do not have dedicated retirement accounts or have modest balances. Seeing where this age group stands can help households assess their own situation before leaving the workforce.
