The US government has revealed how much the average American couple has saved for retirement. How do we compare?

Saving for retirement is an important financial goal, but as millions of Americans work to put aside enough money, you may wonder how you’re doing compared to others.

According to a 2024 Northwestern Mutual survey, many Americans consider $1.46 million to be the “magic number” for a comfortable retirement – ​​however, that’s far from reality for the average household.

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If you’re married and looking to navigate your golden years hand in hand, the big questions on your mind are probably: Are we saving enough for retirement – ​​and how does it compare to others?

Here’s how much the average American couple In fact has been saving for retirement – ​​and how to catch up if you’re worried you’ve fallen behind.

How much has the average couple saved for retirement?

According to the latest figures from the Federal Reserve’s 2022 Survey of Consumer Finances, the average retirement savings balance was $333,940. However, in the same year, the median The household retirement balance was actually only $87,000.

This tells us that the national average of $333,940 is likely skewed by a small percentage of wealthy people.

The median is the midpoint of a group of numbers, while the mean is the sum of all numbers divided by the number of people in the group. The average is more likely to be higher if there is a small percentage of people earning much higher salaries.

However, there are significant differences between households, with income and age having an impact on the amount couples typically save for retirement.

For example, Fed data shows that the median retirement account balances of those earning in the bottom 20% are $17,500, while the median retirement plan value for those earning between the 90th and 100th percentile is $558,600.

Median retirement account balances for people under 35 are about $18,880, while median balances for people ages 65 to 75 are closer to $200,000.

Of course, this variation can be explained by the fact that older and wealthier people are more likely to have larger retirement accounts.

Unfortunately, it’s also worth noting that median balances are still significantly lower than they should be, even for older, higher-earning Americans. In other words, most households simply don’t have what they need in savings.

Learn more: Economists weigh in on Donald Trump’s speech to eliminate Social Security taxes for seniors: Here’s how to boost your retirement fund now

Here’s what couples should have saved for retirement

So how do you know if you’re reaching the right retirement goal as a couple?

According to a T. Rowe Price guideline, couples should aim to meet these savings benchmarks:

• One year of household income at age 35

• Two years of household income at age 40

• Three times household income by age 45

• Five times household income by age 50

• Seven times household income at age 55

• Nine times household income by age 60

• 11+ times household income by age 65

Couples should base their calculations on older spouse. If you are 40 but your spouse is 45, your household should aim to save three times your income, based on the breakdown above.

This is based on the assumption that you will receive retirement funds from Social Security benefits and additional personal savings.

If you have a pension, you don’t need to be as ambitious with your savings goals, as this will provide you with another stable source of income.

How to catch up on your retirement savings

According to a 2023 survey by NerdWallet, 60% of Americans did not put their retirement money in a specific retirement account. As a result, they miss out on tax benefits and high interest rates.

If you don’t have specific retirement accountsA 401(k) or Individual Retirement Account (IRA) are two great options for investing your savings.

If you’re already on the right track with saving, but feel like your marriage isn’t up to par, there are a few key steps you can take to get back on track.

Set a clear savings goal. Use online calculators, such as Investor.gov, to see how much you should save monthly, based on your income, to reach your goals.

Create a budget focused on savings. Make any necessary changes to your spending habits, such as eating out less or driving a less expensive car, to meet your monthly savings goals. There are many budgeting strategies that can be customized to your lifestyle and help you achieve your specific financial goals.

Automate your investments. Have the necessary funds automatically transferred to your tax-advantaged retirement plan to stay on track. Out of sight, out of mind, right? You’ll be able to sleep easy at night knowing your money is flowing into your accounts.

If you’re feeling overwhelmed by the process, consider hiring a trusted financial advisor to help you sort through your situation and help you set and manage your goals.

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This article provides information only and should not be considered advice. It is provided without warranty of any kind.