Average retirement savings of married couples by age

SmartAsset: Average retirement savings of married couples by age

SmartAsset: Average retirement savings of married couples by age

A recent study of the Zety career experts claims that 40% of respondents fear retirement more than death. And nearly nine in 10 said their biggest fear in retirement was not having enough income. For married couples, planning retirement together can be complicated. The amount they will need will depend on their financial situation. Here is a breakdown of couples’ average retirement savings by age.

A financial expert can help you create a financial plan for your retirement needs and goals.

What is the average retirement savings by age?

Unfortunately, many Americans don’t save enough money for their future. In fact, 25% of Americans don’t have Pension saving at all according to PWC report. And among those who have not saved enough for retirement, RIB Research estimates that households in January 2020 saved $3.68 trillion less than they should have in their retirement accounts.

Another study by Vanguard calculated average 401(k) balances by age. The table below details the average and median balances by age group:

401(k) balances by age group Average 401(k) age Median 401(k) balance <25 $6,718 $2,240 25-34 $33,272 $13,265 35-44 $86,582 $32,664 45-54 $161,079 $56,722 55-64 $232,379 $84,717 $55-64 $285,279 $84,717

On average, a person under the age of 25 saves less than $7,000, while a person between the ages of 55 and 64 saves on average just over $232,000. These data break down individual balances by age group, but for married couples, the goals will differ depending on the couple’s age, household income and whether there is a single income or two incomes.

Retirement savings benchmarks for married couples

SmartAsset: Average retirement savings of married couples by age

SmartAsset: Average retirement savings of married couples by age

Financial experts say a 60-year-old couple with a dual income of $75,000 a year should have seven times the household income in their retirement account. This multiplies for a total of $525,000 saved. Conversely, a 65-year-old couple whose income alone brings in $75,000 a year should have saved seven and a half times the household income, which represents $562,500 in their retirement account.

The table below details the savings targets based on the data assumptions made by the investment management company T. Rowe Price. In parentheses, you will see how many times compared to your current household income you should have:

Household income Married, dual income at age 55 Married, dual income at age 65 Married, single income at age 55 Married, single income at age 65 $100,000 $600,000 (6x) $1 million (10x) 500 $000 (5x) $850,000 (8.5x) $150,000 $975,000 (6.5x) $1.575 million (10.5x) $900,000 (6x) $1.500 million (10x) $200,000 ( $2.500 million) 11x) $1.400 million (7x) $2.300 million (11.5x) $250,000 $1.700 million (7x) $2.875 million (11.5x) $1.875 million (7.5x) ) $3.125 million (12.5x) Why you shouldn’t rely solely on Social Security

Since January 2022, retired couples who receive Social security benefits raise an average of $2,753 per month. This amount is equivalent to what you could get with a minimum wage job. So, for many American couples, that might not be enough to sustain their lifestyle once they enter their golden years.

In addition to this, many older Americans are more in debt, which will eat away at their Social Security income. So when you create a pension plan as a couple, financial experts will advise you to assess your financial situation and make the necessary adjustments.

Regardless of your income level, taking stock of your financial situation is a smart way to prepare for retirement. This overview will help you be more intentional about how much money you invest in your retirement savings and avoid a potential income gap later in life if your needs exceed your savings.

Conclusion

SmartAsset: Average retirement savings of married couples by age

SmartAsset: Average retirement savings of married couples by age

When looking at the average retirement savings of married couples by age, the data is sobering. Even if you save more than the recommended amounts and plan to apply for Social Security benefits, you may not have enough to live the life you want in retirement. Financial professionals often deal Pension saving as a destination with multiple checkpoints along the route. Although some experts recommend that you save at least a year of your household income before you reach age 30, it doesn’t hurt to save even more.

When you are ready to retire, this is a good benchmark to aim for at least 9 to 11 times your household income in savings. But since your needs vary as a married couple, you’ll need to assess your financial situation and make any necessary adjustments. A good rule of thumb is to save at least 10% to 15% of your household income each year.

Tips to help you save for retirement

  • According to the Federal Reserve, 60% of those with self-directed retirement accounts are not confident about their investment decisions. If you are one of them, why not hire a financial advisor? SmartAsset’s free tool connects you with up to three financial advisors who serve your area, and you can interview your advisors at no cost to decide which one is best for you. If you’re ready to find an advisor who can help you achieve your financial goals, start now.

  • Relying on Social Security benefits alone probably won’t provide you with full support for your current lifestyle. But the benefits can certainly help cover your living expenses in retirement. The SmartAsset Social Security Calculator will help you estimate the amount of profit you can expect.

  • And, if you want to know if you’re saving enough for retirement, SmartAsset’s Free Retirement Calculator can help you determine how much you will need.

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