Under 35 and saving for retirement? Here’s how much your peers actually have stashed away

Retirement savings for young Americans remain modest, according to the most recent surveys. Federal Reserve data shows that only about half of U.S. households with someone under age 35 had any retirement account savings in 2022, the latest year available — making this age group the least likely to participate in retirement saving compared with older adults.

For those young adults who do have retirement accounts, the figures are telling. The median balance — the midpoint where half have more and half have less — was roughly $18,880 for households under 35. By contrast, older age groups reported substantially higher median balances: $45,000 for people ages 35–44 and $115,000 for ages 45–54.

These numbers reflect the early stage of careers for most people in their 20s and early 30s. Many are still paying off student loans, saving for a home, or managing rent and living expenses. Even so, financial planners stress that starting early — even with small amounts — is one of the most powerful advantages young savers have, due to compound interest over decades.


Experts note that while participation rates among young adults are low, they have consistently inched upward over the past decade, suggesting that more young workers are now beginning to enter retirement plans such as 401(k)s and IRAs as part of their employment benefits.

Why young retirement savers lag behind

Several forces shape retirement saving patterns for Americans under 35. First, income and net worth are typically lower at this life stage than they are for older adults. Median retirement savings rise dramatically with age: for example, households ages 55–64 reported a median retirement balance of around $185,000, and those 65–74 had a median of approximately $200,000.

Competing priorities also play a role. Many young adults direct their limited cash flow toward immediate needs or goals such as paying off debt, securing housing, or building emergency savings. High living costs, especially in urban centers, leave less available for retirement contributions. Consumer research also shows that many young adults don’t feel prepared for retirement and focus more on quality of life now rather than saving heavily for decades ahead.

Financial experts often explain that being behind at age 30 isn’t necessarily catastrophic — time itself is a key ally. A dollar invested at age 25 has far more time to grow through compound returns than the same dollar invested at age 45. Over a 30‑ to 40‑year span, even modest contributions can grow into meaningful retirement balances.

How much young workers are contributing

Data from retirement plan trends shows that the average contribution rates for American workers overall hover around 8% to 10% of salary, rising to around 12% to 14% when employer matching is included. Younger workers generally contribute at the lower end of this spectrum, while older, higher‑income earners contribute more.

Despite employers offering 401(k) matches, many under age 35 do not contribute enough to receive the full match — a missed opportunity. Personal finance advisers recommend at least contributing enough to capture the full employer match when possible, even if it represents a small percentage of pay at first.

In 2026, IRS adjustments will allow workers to contribute up to $24,500 to 401(k)‑style plans and up to $7,500 to IRAs. While young workers often fall short of maximum limits due to budget constraints, these higher thresholds provide more room to grow retirement balances as earnings rise.

FAQs:

Q: What percentage of Americans under 35 have retirement savings?

A: About 50% of U.S. households under age 35 had any retirement account in 2022. Participation has grown over the past decade but remains lower than older age groups.

Q: How much do young adults typically have saved for retirement?

A: The median retirement balance for Americans ages 18–34 was $18,800 in 2022. This midpoint means half have more and half have less saved, reflecting early career earnings and expenses.