How Your Savings Compare to the Average American at Age 55-64
Transaction accounts include checking, savings, money market, and brokerage cash accounts, as well as prepaid debit cards. We use median figures here, instead of mean averages, to reduce the impact of those with exceptionally high or low savings amounts. The median value is that of an American in the middle of the range–where half of the survey respondents reported more savings and half reported less. What the Average American Has Saved by Age 65-74—And How You Compare... See how your savings stack up against typical Americans your age—and discover smart strategies for strengthening your retirement readiness.If you were raising children and helping them with large expenses such as college, you may not have been able to save as much when you were younger. Or if you had car payments or credit card debt that you’ve been able to pay off, you may now be able to direct more money toward savings.Remember that you’re a long-term investor. If you have extra money from paying off debt, allocate some of the cash flow to both short-term savings and long-term investments. “Even if you're in your 60s and you're retiring today, you're still a long-term investor,” Cheng said.If you are balancing college costs and retirement and you have a 529 education account, Cheng recommends not paying for school solely with those funds. While they are very favorable and utilize tax-free money, she suggests paying some college expenses with taxable money so you may be eligible for some education tax credits.
