The Federal Reserve’s 2025 Survey of Consumer Finances reveals significant variations in retirement account ownership and balances across different age groups. Less than 63% of households headed by individuals in their 40s or 50s have a retirement account, while fewer than half of those in their 20s do. Among account holders, median balances rise from $12,600 in the 20s to $250,000 in the 60s and 70s. Notably, households headed by someone in their 30s were the only age group where retirement account ownership declined since 2022.
Retirement account ownership increases with age, peaking in the 50s before declining in the 60s and 70s. Over 45% of households in their 20s have a retirement account, rising to 63% in the 40s and slightly higher in the 50s. However, ownership drops to below 58% in the 60s and nearly 48% in the 70s. Factors like rising earnings, access to workplace retirement plans, and traditional pensions may explain these trends.
Median retirement account balances also grow with age, with the largest balances in the 60s and 70s. The typical balance for households in their 30s is about 3.5 times that of those in their 20s, and it more than doubles among those in their 40s. The gap widens significantly between the 50s and 60s, where the median balance reaches $250,000-79% more than those in their 50s. Growth stalls slightly in the 70s, with a median balance increase of only about 1.7% from the 60s.
Since 2022, median balances have generally increased, rising 11% to $106,000 across all households with retirement accounts. The largest gains were seen in households in their 30s, 40s, and 60s, with increases of 22%, 25%, and 31% respectively. However, account holders in their 50s saw a 21% decline to $140,000, and those in their 20s experienced a 13% drop to $12,600. The survey highlights that a significant portion of households, particularly those in their 40s and 60s, lack a retirement account, relying instead on pensions, home equity, or Social Security.