Average Savings by Age

According to the poll, certain Americans with savings accounts report having much bigger balances than others. As a result, the average savings by age is more than the median savings for each age group. Here is a look at the figures for each age group for those citizens of the United States with savings accounts.

• for ages 18-34: $8,330.50
• for ages 35-44: $10,663.20
• for ages 45-54: $11,482.30
• for ages 55-64: $16,977.20
• for ages 65+: $19,369.70

The median savings account balance for those aged 18–34 in the United States is $1,000, even though the average value of savings account for this age group is $8,330.50. The median savings amount is shown because we find it more representative of the norm across all age groups.

Median Savings by Age

For Ages 18-34

$1,000. If you are in this age range, you may have many financial priorities vying for your savings, such as paying off student debts and putting money away for a first house. However, you should still save money in an emergency fund so unforeseen costs do not derail your other financial objectives. You can begin with modest contributions and see your savings accumulate over time.

For Ages 35-44

$2,500. If you are in this age group, you may be farther along in your profession and generating more money than you were only ten years ago. Alternatively, you may have had more opportunities to take advantage of compound interest since you have more time. This includes the interest that is accrued on the money in your account and the interest that you earn on the money itself. Regardless of how much money you have set aside, you should make it a point to prioritize building up an emergency fund and achieving other financial objectives, such as reducing your debt and preparing for retirement, at the same time.

For Ages 45-54

$4,000. This is likely due to the age you have had more years to save and more time to take advantage of compound interest. The amount is bigger than what is typical for those who are younger. At the same time, you may also be concerned about saving for your retirement. For instance, if you are above 50, you can make catch-up payments to a retirement account. Always bear in mind the importance of maintaining a healthy financial reserve.

For Ages 55-64

$5,000. If you are in this age bracket, there is a high probability that you have saved more money than you ever had at prior times in your life. According to the Bureau of Labor Statistics, this age group makes money among the highest wages. Because they may have had more years to benefit from compound interest, it should not come as a surprise that they also rank higher than other age categories in terms of the amount of money they have saved. Consider placing your savings in an account with a high-interest rate, regardless of how much money you have in the bank. It can increase the amount of interest you earn over time.

For Ages 65+

$5,000. If you are already retired or about to retire soon, you can use money from your retirement savings to pay for day-to-day costs. However, maintaining a savings account is still essential if bills were not planned for.

Tips To Help You Build Up More Money in Your Savings Account

If you want to increase the amount of money in your bank account, a smart first step is to review your current expenditure and identify areas in which you may save more than you are now. Next, use a tactic known as "set it and forget it" by establishing a recurrent, automated transfer from your checking account to your savings account - maybe after you are paid. Putting aside just $25 every two weeks results in an additional $650 saved over a year.

Put your savings into an account that earns a high-interest rate so your money can provide an even greater return. Say you have $5,000. The typical savings account's annual percentage yield (APY) is just 0.30%, implying that your money will earn less than $5 in interest after a year. If you put the same money into a high-yield account that yields 0.40%, the sum will increase by around $20 after a year with no more work required.

One standard against which you may measure the success of your savings efforts is the median balance in savings accounts broken down by age. But notwithstanding the state of your account, now is always a good moment to contribute to its expansion. At any age, increasing the amount of money you have saved may be made easier by opening a savings account with high interest and establishing an automatic savings plan.