The Average IRA Balance for a Person Approaching Retirement in 2026

If you are wondering how your retirement savings compare with your peers as you approach your retirement deadline, the Federal Reserve Bank publishes economic research, which might surprise you. In 2024, according to the Federal Reserve’s Economic Well-Being of U.S. Households report, 65% of Americans said they were either off track on retirement savings or unsure. For many, Social Security is only part of their retirement income and in order to create an additional income, they have been saving in Individual Retirement Accounts (IRAs) for many years. According to the Tax Policy Center’s analysis of IRS data, about 65 million U.S. taxpayers hold IRAs, with an average balance of roughly $195,000.

Many workers are able to put retirement money away through IRA’s including Roth IRA’s and 401 K programs, some of which provide an employer match up to a certain percentage of income. But more than half of Americans have far less than what the top ten percent have saved.

Mean or Median Retirement

In the Federal Reserve’s most recent Survey of Consumer Finances, the median retirement account balance in the U.S. is $87,000, according to the Federal Reserve.

Ages 35 and under: this group holds an average of $49,130 in retirement savings and a median of $18,880.

Ages 35 to 44: this group holds an average of $141,520 and a median of $45,000.

Ages 45 to 54: this group holds an average of $313,220 and a median of $115,000.

Ages 55 to 64: this group holds an average of $537,560 and a median of $185,000.

Ages 65 to 74: this group holds an average of $609,230 and a median of $200,000.

Ages 75 and older: this group holds an average of $462,410 and a median of $130,000.

Although the numbers are improving each year, it is still concerning that according to Federal Reserve data, roughly one in four Americans has nothing saved for retirement. Although a retirement goal is an arbitrary and highly personal one – it doesn’t take a financial wizard to know that this amount of retirement savings is not enough.

In its most recent Federal Reserve report on the “Economic Well-Being of US Households” the agency came out with the finding that not only do many people have no retirement savings but that of those who are saving regularly, over half are uncomfortable in their ability to make the correct investment decisions.

Traditional vs. Roth IRA Balances

IRS data compiled by the Tax Policy Center shows that about 23% of U.S. taxpayers own traditional IRAs and about 11% own Roth IRAs. The average traditional IRA balance is $211,000, while the average Roth IRA balance is $52,000. Traditional IRA owners with adjusted gross income above $500,000 hold an average balance of $495,000.

Traditional IRA balances tend to be higher because they’re often built up through rollovers from employer-sponsored plans like 401(k)s. Roth IRAs are funded mainly through smaller annual contributions, though qualified withdrawals in retirement come out tax-free.

Retirement savings average varies widely by age

Using the Federal Reserve age brackets above, let’s put a hypothetical case together. Let’s say you have worked hard to put a solid nest egg together over the last several decades. You are age 62 and hope to retire fully at 67. Currently you make $70,000.

If your income goal is 80% of your final year’s salary, or $56,000, you’ll need Social Security plus additional retirement income to close the gap. Federal Reserve data puts the average retirement balance for savers 55 to 64 at $537,560 and the median at $185,000. Comparing your own balance to those benchmarks gives you a real read on where you stand heading into the next five years.

Now if you are a Boomer about to hit retirement and you are doing much better than the typical wage earner – think about that ten times figure. Where is your nest egg going to put you in terms of projected annual retirement income?

Whatever the reason for our retirement savings habits, some quick lifestyle adjustments may be in order. Whether it’s scaling down the size of the car or housing, reversing our placement of short term wants over long-term necessity or eliminating our credit card debt, it’s never too late to save more.

A retirement checklist may help you figure out how close you really are to meeting your goals. Filing your taxes accurately each year — including any contributions, distributions, or rollovers from retirement accounts — is part of that picture. Using E-file can help make sure your tax return reflects your retirement activity correctly.

Frequently Asked Questions

What are the average retirement savings for Americans?

The median U.S. retirement account balance is $87,000, according to the Federal Reserve. Averages vary considerably by age, from about $49,000 for those 35 and under to more than $600,000 for savers 65 to 74.

How many Americans own an IRA?

Roughly 65 million U.S. taxpayers own some form of IRA, according to Tax Policy Center analysis of IRS data. About 23% own a traditional IRA and 11% own a Roth.

Why is the average IRA balance so much higher than the median?

When a few very large accounts sit alongside many smaller ones, the average gets pulled upward. The median gives you the midpoint of the pack, which tends to reflect what most savers actually have.

Are IRA contributions tax-deductible?

Traditional IRA contributions may be deductible depending on your income and whether you’re covered by a retirement plan at work. Roth contributions are made with after-tax dollars and are not deductible, though qualified Roth withdrawals in retirement are generally tax-free.

Sources

• Federal Reserve, Economic Well-Being of U.S. Households in 2024
• Federal Reserve, Survey of Consumer Finances
• Tax Policy Center, “Who uses individual retirement accounts?”

Note: Tax laws may change with little notice. We do our best to keep this information current, but it is provided on an “AS IS” basis. It should not be considered, legal, financial, or other professional guidance. For more, see our terms.