How the Average Retirement Account Compares to the Top 10% of Savers
If you’ve ever wondered how well you’re doing with your retirement savings, you’re not alone. Most Americans have at least some desire to “keep up with the Joneses,” after all.
Beyond that, comparing your nest egg balance to others can give you a real-world sense of whether you’re on track to meet your retirement goals. And if you’re a super saver, the peer group you’ll most want to know about is those in the top 10%.
With that in mind, here’s what the data says about how the average retirement account compares with the top 10% of savers.
What Does ‘Average’ Even Mean?
Retirement account balances in America have an incredibly wide dispersion. Even calculating the “average” balance requires defining some terms, especially “median” and “mean.”
The median retirement account balance is the figure that sits right in the middle of all available data. In other words, 50% of Americans have larger balances and 50% have smaller balances.
The mean retirement account balance is the mathematical average of all account balances, calculated by dividing the total amount of assets in retirement accounts by the number of accounts. This average typically skews much higher than the median balance, as large balances at the top can dramatically inflate it.
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According to the Federal Reserve’s most recent Survey of Consumer Finances, published in October 2023, 54.3% of American families had retirement accounts in 2022. Among those who did, here were the average reported balances:
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The median balance was $86,900.
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The mean balance was $334,000.
That enormous gap — from $86,900 to $334,000 — provides a clear picture of how high-balance savers meaningfully raise the “average” account balance. Depending on what type of comparison you’re trying to make, the median retirement account balance might be the more appropriate figure to use.
How Much Do the Top 10% Hold?
There’s no definitive study showing exactly how much the top 10% of savers in America have in their retirement accounts. But data from the Congressional Research Service allows for a fair approximation.
According to CRS data, which is based on the Fed’s SCF:
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4.6% of American households had more than $1 million in retirement accounts
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4.7% had $500,000 to $1 million in retirement accounts
Add those two figures together and they show that about 9.3% of households have $500,000 or more in their retirement accounts. This can act as a rough proxy for the “top 10%.”
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