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What is the median retirement savings by age group in the United States?
Median retirement savings in the U.S. climb slowly with age but remain alarmingly low throughout: under $20,000 for those under 35, around $45,000 for ages 35–44, $115,000 for ages 45–54, $185,000 for ages 55–64, and $200,000 for ages 65–74. A 64-year-old with $185,000 applying the standard 4% withdrawal rule would generate just $7,400 of income per year — far below any reasonable retirement budget.
These numbers come directly from data discussed on The Money Guy Show in the episode How To Build Wealth If You're Already Behind. Brian Preston and co-host Bo Hanson frame these medians not as benchmarks to aspire to, but as a warning — the typical American is not on track.
A CNBC poll reinforces the picture: 53% of U.S. adults say they are behind schedule on retirement planning, and 69% of American workers are unsure they will ever be able to retire comfortably. The median savings data shows they are right to worry.
$200,000 at 65 — and the math that makes it real
The age 65–74 bracket looks the most reassuring on the surface: $200,000 is a number that feels substantial. But apply a 4% annual withdrawal rate — the widely cited rule of thumb for sustainable retirement income — and it produces just $8,000 per year. For the 55–64 bracket, $185,000 generates roughly $7,400 annually.
Preston and Hanson compare these figures to a recommended retirement target of approximately $1.4 million for median earners. The gap between where most Americans stand and where they need to be is not a rounding error — it is a structural shortfall that compounds with every year of delayed saving.
This episode of The Money Guy Show is built around exactly this tension: the difference between feeling behind and actually being behind. The median data makes clear that most Americans who feel behind are, in fact, behind — and the gap widens dramatically for those who delay action further.
The behaviors that explain the shortfall — not just the numbers
The episode does not stop at the statistics. Preston and Hanson identify specific financial decisions that drain retirement savings before they can accumulate. Fifty-six percent of Americans with children prioritize saving for college over their own retirement — a choice that feels virtuous but leaves the parent structurally underfunded.
Consumer debt compounds the problem. The average millennial carries a $7,000 credit card balance at 21–22% annual interest, according to data cited on the show. At those rates, every dollar that services debt is a dollar permanently removed from the compounding potential of a 401(k) or Roth IRA.
The Money Guy Show framework — the Financial Order of Operations — exists precisely to address this sequencing problem: clear high-interest debt before investing, but never stop contributing enough to capture any available employer match in the process.
A commonly used retirement planning guideline suggesting that a retiree can withdraw 4% of their portfolio in the first year of retirement, then adjust for inflation annually, with a reasonable expectation that the portfolio will last 30 years. Applied to $185,000, this produces approximately $7,400 of annual income — a figure Preston uses to illustrate the severity of the U.S. retirement savings shortfall.
"If you want to be somewhere you've never been, you have to be willing to do something you've never done."
Brian Preston — Certified Financial Planner, co-founder of Abound Wealth Management and host of The Money Guy Show. Preston built the show around making professional-grade financial planning accessible to everyday earners, with a particular focus on helping people who are starting late or starting from scratch.
That principle is at the core of what Preston argues in this episode: the median retirement savings figures are not a verdict, they are a starting point. But the starting point has to be seen clearly — and the numbers above make it impossible to look away. Explore the full episode on The Money Guy Show on Listenly to hear the complete breakdown and the action steps that follow.
See also
What percentage of U.S. adults say they are behind schedule on retirement planning?
According to a CNBC poll cited on The Money Guy Show, 53% of U.S. adults say they are behind schedule in retirement planning and savings. Additionally, 69% of American workers are unsure they will ever be able to retire comfortably.
Key takeaways
- Median retirement savings peak at just $200,000 for the 65–74 age group — versus a recommended target of roughly $1.4 million for median earners.
- The 4% withdrawal rule turns $185,000 (the median for ages 55–64) into approximately $7,400 of annual income — not a livable retirement.
- High-interest credit card debt and prioritizing college savings over retirement are two of the most common behaviors that explain the shortfall.
- Feeling behind and actually being behind are not the same thing — but the median data shows that most Americans who feel behind are correct.