Saving money is crucial to your financial well-being. You need to have money set aside in a high-yield savings account for short-term needs such as potential emergencies or purchases you are likely to make soon. You should also have long-term savings invested in a brokerage account so you can earn returns that help you grow your wealth.
The good news is, many people have been saving more during the COVID-19 pandemic. Plus, many of those individuals who have increased their savings rate report that they intend to continue setting aside additional funds going forward, even though the average amount of savings among American households has ticked down in 2022 compared with the prior year.
So, just how much does the average American have saved? Here's what you need to know.
The average amount of personal savings in the U.S.
According to the Northwestern Mutual Planning and Progress Survey for 2022, the average amount of personal savings in 2022 came in at $62,000. This is a considerable decrease from the $73,000 average amount of personal savings reported on the same survey in 2021.
It is something of a surprise that personal savings balances went down this year, especially given that the same research showed 60% of people said they had been able to build up their personal savings over the previous two years and 69% of those individuals indicated that they intend to continue to save at the same elevated rate going forward.
The pandemic actually helped many people develop more positive savings habits. How so? Government stimulus money offered some extra cash, and lockdowns and travel restrictions made it more difficult to spend money on entertainment and other discretionary expenses.
Since these restrictions have been lifted and since the government handed out less stimulus money this year, these two factors alone could help explain why personal savings balances are not as high as they were in the recent past.
What should you do if your savings falls short?
If you have far less personal savings than the average, don't be discouraged. Averages can be increased by people with very large amounts of savings, so remember there are probably many people who are in your same position or who have even less saved than you do.
While you shouldn't get upset if your balance is lower than you'd like, you should be proactive in trying to change that. To do that, make a commitment to treat saving as a priority. You can, and should, set clear financial goals, determine how much you need to save each month to achieve them, and make this a "must-pay" bill when you set a budget.
If you treat your savings as essential, just like rent or your mortgage and food, you'll be less likely to put it off until the end of the month when you have nothing left. In fact, once you've decided how much you want to save, you can set up an automatic transfer of the funds directly from your bank account on payday so the money gets where you need it to. This is a surefire way to bring your savings account balance up so you can equal or exceed the averages.
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FAQs
In terms of savings accounts specifically, you'll likely find different estimates from different sources. The average American has $65,100 in savings — excluding retirement assets — according to Northwestern Mutual's 2023 Planning & Progress Study. That's a 5% increase over the $62,000 reported in 2022.
How many Americans have $20,000 saved? ›
Other answers revealed that 15 percent had between $1,000 to $5,000, 10 percent with savings of $5,000 to $10,000, 13 percent boasted $10,000 to $20,000 of cash in their bank accounts while 20 percent had more than $20,000.
What percentage of Americans have $5000 saved? ›
About 29% of respondents have between $501 and $5,000 in their savings accounts, while the remaining 21% of Americans have $5,001 or more. Few hold much cash in their checking accounts as well. Of those surveyed, 60% report having $500 or less in their checking accounts, while only about 12% have $2,001 or more.
What percent of Americans have $0 saved? ›
Many Americans are stumbling toward golden years that will be heavily tarnished. A new GOBankingRates survey of more than 1,000 adults found that 28% of people have nothing saved for the future, 39% aren't contributing to a retirement fund and another 30% don't think they'll ever be able to retire.
How many people have $3000000 in savings in the USA? ›
This effectively means the top 1% are those with more than $10 million (~25m) and the top 0.1% are those with roughly $1 billion. There are estimated to be a little over 8 million households in the US with a net worth of $3 million or more. I very much doubt that any of them have that amount in savings.
Is 100k in savings a lot? ›
When your savings reaches $100,000, that's a milestone worth marking. In a world where 57% of Americans can't cover an unexpected $1,000 expense, having a six-figure savings account is commendable.
How many Americans have $100,000 in savings? ›
Most American households have at least $1,000 in checking or savings accounts. But only about 12% have more than $100,000 in checking and savings.
How many people have 10k in the bank? ›
Majority of Americans Have Less Than $1K in Their Savings Now
| How Much Do Americans Have in Their Savings Accounts? | | |
|---|
| $501-$1,000 | 11.30% | 12.58% |
| $1,001-$2,000 | 10.60% | 9.81% |
| $2,001-$5,000 | 10.60% | 10.64% |
| $5,001-$10,000 | 9.20% | 9.51% |
4 more rowsMar 27, 2023
If you're looking for a ballpark figure, Taylor Kovar, certified financial planner and CEO of Kovar Wealth Management says, “By age 30, a good rule of thumb is to aim to have saved the equivalent of your annual salary. Let's say you're earning $50,000 a year. By 30, it would be beneficial to have $50,000 saved.
What's the average 401k by age? ›
Average and median 401(k) balances by age
| Age range | Average balance | Median balance |
|---|
| 25-34 | $30,017 | $11,357 |
| 35-44 | $76,354 | $28,318 |
| 45-54 | $142,069 | $48,301 |
| 55-64 | $207,874 | $71,168 |
2 more rowsMar 13, 2024
A majority, 65%, say they live paycheck to paycheck, according to CNBC and SurveyMonkey's recent Your Money International Financial Security Survey, which polled 498 U.S. adults. That's a slight increase from last year's results, which found that 58% of Americans considered themselves to be living paycheck to paycheck.
Can I retire at 65 with 500k? ›
The short answer is yes, $500,000 is enough for many retirees. The question is how that will work out for you. With an income source like Social Security, modes spending, and a bit of good luck, this is feasible. And when two people in your household get Social Security or pension income, it's even easier.
How much do most Americans retire with? ›
Average retirement savings balance by age
| Age group | Average retirement savings balance amount |
|---|
| 35-44 | $141,520 |
| 45-54 | $313,220 |
| 55-64 | $537,560 |
| 65-74 | $609,230 |
1 more rowMar 5, 2024
You'll need to earn more than half a million annually to be considered among the highest earning residents in 11 states and Washington, D.C. "This comes down to cost of living," Murray said.
How much money is considered rich? ›
Those numbers are based partially on a survey conducted last year by personal finance website Bankrate, which found that Americans said they would need to make about $440,000 per year to feel rich or “achieve financial freedom.”
What net worth is considered rich? ›
While having a net worth of about $2.2 million is seen as the benchmark for being rich in America, it's essential to remember that wealth is a subjective concept. Healthy financial habits and personal perspectives on money are crucial in defining and achieving wealth.
Is 20000 a lot of money to have saved? ›
Having $20,000 in a savings account is a good starting point if you want to create a sizable emergency fund. When the occasional rainy day comes along, you'll be financially prepared for it. Of course, $20,000 may only go so far if you find yourself in an extreme situation.
What percent of Americans have $25,000 in savings? ›
58% of Americans have less than $5,000 in savings.
| Average savings amount | Share of Americans |
|---|
| $5,000-$10,000 | 9% |
| $10,000-$25,000 | 8% |
| $25,000-$50,000 | 5% |
| $50,000+ | 20% |
2 more rowsFeb 16, 2023
While $20K may not let you quit your job, it's enough to start building financial security, whether you max out your retirement accounts, invest in fine art, or divide your cash between multiple investments.
Is 20K in savings good? ›
$20,000 can be a healthy amount of savings, but this largely depends on several factors, including your financial goals, age, income, lifestyle or choice of retirement account.
