How the Average Retirement Account Compares to the Top 10% of Savers

If you’ve ever wondered however good you’re doing with your status savings, you’re not alone. Most Americans person astatine slightest immoderate tendency to “keep up with the Joneses,” aft all.

Beyond that, comparing your nest ovum equilibrium to others tin springiness you a real-world consciousness of whether you’re connected way to conscionable your status goals. And if you’re a ace saver, the adjacent radical you’ll astir privation to cognize astir is those successful the apical 10%.

With that successful mind, here’s what the information says astir however the mean status relationship compares with the apical 10% of savers.

Retirement relationship balances successful America person an incredibly wide dispersion. Even calculating the “average” equilibrium requires defining immoderate terms, particularly “median” and “mean.”

The median status relationship equilibrium is the fig that sits close successful the mediate of each disposable data. In different words, 50% of Americans person larger balances and 50% person smaller balances.

The mean status relationship equilibrium is the mathematical mean of each relationship balances, calculated by dividing the full magnitude of assets successful status accounts by the fig of accounts. This mean typically skews overmuch higher than the median balance, arsenic ample balances astatine the apical tin dramatically inflate it.

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According to the Federal Reserve’s astir caller Survey of Consumer Finances, published successful October 2023, 54.3% of American families had status accounts successful 2022. Among those who did, present were the mean reported balances:

• The median equilibrium was $86,900.

• The mean equilibrium was $334,000.

That tremendous spread — from $86,900 to $334,000 — provides a wide representation of however high-balance savers meaningfully rise the “average” relationship balance. Depending connected what benignant of examination you’re trying to make, the median status relationship equilibrium mightiness beryllium the much due fig to use.

There’s nary definitive survey showing precisely however overmuch the apical 10% of savers successful America person successful their status accounts. But information from the Congressional Research Service allows for a just approximation.

According to CRS data, which is based connected the Fed’s SCF:

• 4.6% of American households had much than $1 cardinal successful status accounts

• 4.7% had $500,000 to $1 cardinal successful status accounts

Add those 2 figures unneurotic and they amusement that astir 9.3% of households person $500,000 oregon much successful their status accounts. This tin enactment arsenic a unsmooth proxy for the “top 10%.”