Updated June 18 2025

Saving money is a cornerstone of financial security.

Whether it’s for a down payment on a home, an emergency fund, or retirement, setting money aside for the future is essential. However, it can be difficult to gauge whether you're saving enough. One way to assess your progress is by comparing your savings to the national averages by age group. This offers insight into how your financial habits align with other Americans—and helps you plan more effectively for your future.

In this article, we’ll break down the average American savings by age, provide guidance on how much you should aim to save at each stage of life, and share tips to accelerate your savings growth. We’ll also cover real-life personas, savings by income tier, and practical benchmarks you can use.

Understanding Average Savings by Age

Before diving into the numbers, it’s important to understand that "savings" can refer to various financial assets. In general, savings are funds reserved for future needs—planned purchases or emergencies. The Federal Reserve tracks Americans' savings through categories like "transaction accounts" and "time deposit accounts."

Transaction accounts include:

• Checking accounts
• Savings accounts
• Money market accounts
• Prepaid debit cards

Time deposit accounts (like CDs) restrict access for a set period but may offer higher interest rates.

According to the Federal Reserve’s 2022 Survey of Consumer Finances, the average balance in transaction accounts was $62,410, but the median was just $8,000. That gap highlights income and wealth inequality: many Americans have modest savings while a few hold disproportionately large amounts.

Reader examples: Who’s Really Saving What? How do you compare?

Emma, 33: Single renter in Austin, earns $55k/year. She’s managed to save $4,200. That’s slightly below the median for her age group, but she’s prioritizing building an emergency fund and just started contributing to a Roth IRA.

David, 46: Homeowner in Ohio, earns $110k. His savings total $45,000 with $250,000 in retirement funds. He’s slightly above average for his age but still playing catch-up for retirement.

Average Savings by Income Bracket

While age is one benchmark, income tier offers another lens:

(Source: SCF, Bankrate, 2024)

Average Savings for Individuals in Their 20s

Americans under 35 have an average savings of $20,540, but the median is just $5,400. Student debt, lower income, and lifestyle spending contribute to these lower figures. Still, starting early is key.

How to Build Savings in Your 20s:

• Use high-yield savings accounts
• Contribute to employer 401(k)s, especially with a match
• Open an IRA—even small monthly deposits grow significantly over time

Saving $200/month from age 25–65 at a 7% return = $525,000.

Average Savings for Individuals in Their 30s

With a steadier income, Americans under 35 report average savings of $20,540 (same as late 20s), but many are saving for homes or families.

Goals for Your 30s:

• Emergency fund: 3–6 months of expenses
• Begin investing beyond retirement: taxable accounts, real estate
• Save for big purchases (e.g., home, child expenses)

Tips to Grow Savings:

• Automate savings
• Boost 401(k) by 1–2% annually
• Cut recurring costs (unused subscriptions, excessive dining out)

Average Savings for Individuals in Their 40s

Americans aged 35–44 average $41,540 in savings, with a median of $7,500. These are key earning years, and savings should ramp up.

Priorities in Your 40s:

• Maximize retirement contributions
• Use catch-up contributions (age 50+)
• Diversify investments (stocks, real estate, alternatives)

Tools to Help: Consider platforms from our guide on [Top 10 Fintech Tools Every Investor Should Know] to grow wealth efficiently.

How Much Should You Have in Savings?

Emergency Fund Targets:

Retirement Goal: Save 10–15% of your income annually, increasing over time. If you’re behind, adjust upward and delay big purchases.

Where to Keep Your Savings

For emergency funds:

• High-yield savings accounts (e.g., Ally, SoFi, Marcus)
• Money market accounts

For mid- and long-term goals:

• CDs (for fixed timelines)
• Investment accounts (ETFs, IRAs)

Related: Learn more in our [Best Investing Apps for Beginners in 2025].

How to Boost Your Savings Fast

• Review and cut unnecessary expenses
• Automate transfers to savings
• Use windfalls (bonuses, refunds) wisely
• Open a high-yield savings account
• Try fintech tools from our [Fintech & Investing Tools in 2025: The Ultimate Guide to Building Wealth with Technology]

People Also Ask (PAA)

What’s a good amount of savings by age 30? A good target is one year’s salary saved by age 30, though even reaching 50% is a solid start.

Is $20k in savings good? It’s above the U.S. median—so yes, especially if you're in your 20s or 30s. Context matters: income, goals, and debt levels affect what’s "good."

What percent of income should go to savings? Experts suggest 20% of net income: 10–15% for long-term (like retirement) and 5–10% for short-term goals or emergency funds.

Making Sense of the Numbers—And Your Next Step

Comparing your savings to national averages can be motivating—but it’s not the full story. Your goals, income, and expenses all matter. Use this data to identify gaps, adjust your strategy, and build a future-proof plan.

If you’re juggling multiple accounts, explore [Best Robo-Advisors Compared: Wealthfront vs Betterment vs SoFi] or consider smart tracking apps listed in [Top 10 Fintech Tools Every Investor Should Know].

Saving isn’t just about security—it’s about freedom, control, and peace of mind. Start where you are, and build from there.