How does your Nest Egg stack up? That’s what it takes to be in the top 10% of retirement savers

let’s talk about it your nest egg. No, not in a “Why didn’t you save more?” way: this is not a guilt trip. Instead, think of it as friendly check-in. Whether your savings are skyrocketing or just getting started, it’s natural to ask: How can I keep up? And for those of you watching the top 10% of retirement saversthese numbers will show you exactly what is needed.

Spoiler: It’s not all doom and gloom; there is always time to make moves. Let’s break it down.

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Averages: Are you ahead or behind?

First, let’s look at what the average American has saved for retirement by age group. According to the 2022 Survey of Consumer Finances, here’s where things stand:

Under 35 years old:

• Average savings: $49,130

• Average savings: $18,880

Age 35-44:

• Average savings: $141,520

• Average savings: $45,000

Age 45-54:

• Average savings: $313,220

• Average savings: $115,000

Age 55-64:

• Average savings: $537,560

• Average savings: $185,000

Age 65-74:

• Average savings: $609,230

• Average savings: $200,000

75 and over:

• Average savings: $462,410

• Average savings: $130,000

If you’re beating those averages, it’s worth celebrating! But maybe you’re looking at the next level: joining the top 10%. what does it look like

The top 10%: where the big savers are

The top 10% of retirement savers are in a league of their own. Here’s what it takes to join their ranks:

Average savings: About $900,000.

Average savings: approximately $1.3 million.

It’s important to mention that the average is higher because a few ultra-wealthy savers skew the numbers, while the average shows what most people have.

By age 50, the top 10% of savers often have more than $500,000 stashed away.

By age 55, they typically reach $750,000 or more.

And the cream of the cream? has the top 1% have $2.3 million in savings. But when a broader definition of retirement assets is considered, the figure rises to $5 million, according to data from DQYDJ, using Federal Reserve statistics.

What should you aim for?

Even if the top 10% feels far away, financial experts offer pointers to keep you on track for a comfortable retirement:

• 30 years: Save 1 times your annual salary.

• 40 years: 3 times your salary.

• 50 years: 6 times your salary.

• 60 years: 8 times your salary.

• 67 years: 10 times your salary.

These milestones are not hard and fast rules – life happens. But they are a good starting point to see where you stand.

Trend: Many are using retirement income calculators to check if they’re on track: here’s a breakdown of what’s behind this formula.

Want to increase your savings? Here’s how

If your savings feel a little underwhelming, don’t stress. There are many ways to catch up:

1. Maximum Retirement Contributions: Contribute as much as possible to your 401(k) or IRA. And if your employer offers a match, take that money for free!

2. Start saving early: The earlier you start, the more compound interest will work in your favor. If you’re late to the game, don’t worry, you can still catch up.

3. Take advantage of catch-up contributions: For those over 50, you can save an extra $7,500 a year in your 401(k). Starting in 2025, people aged 60-63 can save up to $11,250.

4. Cut unnecessary expenses: Redirect what you save into your retirement fund. Small sacrifices now it can lead to big wins later.

5. Diversify your investments. A mix of stocks, bonds and other assets can balance risk and grow your nest egg.

It’s not too late to make moves

If you’re behind, don’t panic, it’s never too late to start. Whether you’re playing catch-up in your 50s or just starting out in your 20s, every little bit counts. The key is consistency and making smart financial decisions now to give your future a chance.

So how does your nest egg stack up? If you’re already ahead of the averages, you’re in a great place. And if not, now is the perfect time to do it build a plan and take control of your financial future. Remember, saving for retirement isn’t about perfection, it’s about progress.

*This information is not financial advice and personalized guidance from a financial advisor is recommended to make informed decisions.

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