Americans Ages 55 to 64 Reveal How Much They Saved for Retirement—and Who Has Nothing

As millions of Americans approach retirement age, new data from the Federal Reserve and private financial firms reveal a stark reality: retirement readiness varies dramatically, and a significant share of older workers have little—or no—money set aside for their later years.

While some households enter their late 50s and early 60s with sizable retirement accounts and home equity, others are nearing the end of their working lives without dedicated retirement savings at all. The gap highlights how access to workplace plans, lifetime earnings, housing wealth, and market conditions shape financial security in retirement.

Key Takeaways

• Only 57% of Americans ages 55–64 had a retirement account in 2022, according to the Federal Reserve’s Survey of Consumer Finances — a participation rate near a 30-year low.

• Among those who do have retirement accounts, the median balance was $185,000.

• Newer data from Empower show median 401(k) balances of $253,454 for people in their 50s and $186,902 for those in their 60s.

• A 2024 AARP survey found that 1 in 5 adults age 50 or older have no retirement savings whatsoever.

• Housing wealth, access to employer-sponsored plans, and exposure to market swings play a major role in retirement outcomes.

How Many Americans Ages 55–64 Have Any Retirement Savings?

According to the Federal Reserve’s 2022 Survey of Consumer Finances, just 57% of households headed by someone between ages 55 and 64 reported having money in a retirement-specific account, such as a 401(k), IRA, or pension plan.

Although this share is slightly higher than in 2019, it remains one of the lowest participation rates for this age group since 1995, underscoring how many Americans reach their final working years without formal retirement savings.

The issue extends beyond Fed data. A 2024 AARP survey found that 20% of adults age 50 and older have no retirement savings at all, meaning they are likely to rely almost entirely on Social Security or continue working longer than planned.

Why participation matters

Retirement accounts offer tax advantages and long-term growth opportunities that are difficult to replicate elsewhere. Without them, households often face limited flexibility and higher financial stress once paychecks stop.

Income, Net Worth, and the Pre-Retirement Years

Financially, the years leading up to retirement are typically a peak period. Fed data show that median income and net worth tend to be highest for households in their mid-50s to mid-60s, reflecting decades of earnings, savings, and asset accumulation.

This stage of life often comes with fewer financial obligations. Child-rearing expenses decline, mortgages may be close to payoff, and college costs may be behind families. Even so, many households stop contributing to retirement accounts or never fully catch up after earlier setbacks.

“Many households are consolidating accounts, retiring earlier, or shifting assets in anticipation of income planning,” said Eric Ludwig, director of the Center for Retirement Income at the American College of Financial Services. “Others never fully accumulated their retirement savings and are quietly opting out.”

How Much Retirement Savings Do Americans Ages 55–64 Typically Have?

For households that do have retirement accounts, balances vary widely.

Median Retirement Balances by Age Group

Note: Medians reflect the midpoint of balances, meaning half of households have more saved and half have less. Medians are used to avoid extreme balances skewing the data.

While balances generally rise with age, experts caution that higher balances don’t automatically mean financial security.

“Two households of the same age can have very different retirement prospects depending on asset ownership, housing exposure, and access to workplace plans,” Ludwig said. “Rising balances also do not guarantee rising security if those balances are highly dependent on market levels.”

Why This Matters to You

For Americans in their mid-50s and early 60s, retirement is no longer a distant concept—it’s a near-term reality. Understanding how peers are positioned can help households benchmark their own readiness and identify gaps while there’s still time to act.

At this stage, the focus often shifts from accumulating savings to figuring out how long those resources must last and how they’ll be turned into monthly income.

One simple rule of thumb, according to Ludwig:

1. Estimate expected annual retirement expenses

2. Subtract Social Security and other guaranteed income

3. Multiply the remaining gap by 20 to 25 years

How to Boost Savings When Retirement Is Just Years Away

Even late in a career, smart decisions can meaningfully improve retirement security.

Mindy Yu, senior director of investing at Betterment, recommends reviewing both savings goals and investment allocations to ensure they still match income needs, risk tolerance, and retirement timing.

Steps That Can Still Make a Difference

• Review spending habits
  Cutting discretionary expenses—such as dining out, travel, or unused subscriptions—can free up extra cash.

• Reduce high-interest debt
  Paying down credit cards or personal loans can improve cash flow and lower financial stress in retirement.

• Maximize retirement contributions
  Workers age 50 and older can take advantage of catch-up contributions in 401(k)s and IRAs, especially when employer matching is available.

• Use planning tools or professional advice
  Retirement calculators or financial advisors can help stress-test assumptions and identify shortfalls.

The Bottom Line

Retirement readiness in America is far from uniform. While some households enter retirement with solid savings and assets, millions approach the finish line with limited or nonexistent retirement funds.

The final decade of work remains a critical window. With careful planning, cost control, and strategic saving, even late-career decisions can significantly improve long-term financial stability.

Source: Federal Reserve, Empower, AARP. Original reporting by Investopedia.