Medians Down: Americans Aged 35-44 Struggle with Retirement Savings
The Federal Reserve's Survey of Consumer Finances reveals that most Americans aged 35-44 have retirement accounts, but their median balances have declined. For those in this age group who reported having retirement accounts in 2022, the median balance was $45,000.
This is the lowest median balance for this age group since 2010 and a significant decline from the $69,550 recorded in 2019. Eric Ludwig, PhD, CFP, RICP, and director of the Center for Retirement Income at The American College of Financial Services, notes that income growth during this period has been uneven, with gains concentrated among higher earners.
Ludwig suggests prioritizing retirement savings by aiming to save two to three times annual household expenses by mid-40s. To achieve this, individuals can increase their retirement contributions annually and revisit their account asset allocations to prioritize growth over stability.