How much are Americans saving — and what should you be saving?
U.S. Personal Savings Rate
4.7%
BEA, November 2024
Average 401(k) Deferral Rate
9.4%
Vanguard 2024
Recommended Rate
15%
Fidelity guideline
| Age Group | Total Savings Rate |
|---|---|
| Under 25 | +7% |
| 25–34 | +9.7% |
| 35–44 | +10.8% |
| 45–54 | +12.4% |
| 55–64 | +14.6% |
| 65+ | -8% |
Savings rates increase dramatically with income. The wealthiest Americans save a disproportionate share of national income.
| Income Group | Avg Income | Savings Rate |
|---|---|---|
| Bottom 20% | $14,000 | -18.2% |
| Second 20% | $32,000 | +2.1% |
| Middle 20% | $56,000 | +6.8% |
| Fourth 20% | $93,000 | +12.4% |
| Top 20% | $215,000 | +23.7% |
| Top 5% | $430,000 | +37.2% |
15% Rule (Fidelity)
Save at least 15% of pre-tax income for retirement, including employer match. Assume starting at 25, retiring at 67.
15%
20% Rule (50/30/20)
The classic budgeting rule: 50% needs, 30% wants, 20% savings and debt repayment. Includes emergency fund, retirement, and debt beyond minimums.
20%
FIRE Movement
Financial Independence/Early Retirement advocates saving 50-70%+ of income to retire in 10-15 years. Requires significant lifestyle adjustments.
50%+
Bare Minimum
At minimum, capture all employer 401(k) match (free money) plus get to 10% total. This won't build significant wealth quickly but beats nothing.
10%
In Your 20s
Focus on building an emergency fund (3-6 months), capturing 100% of employer 401(k) match, and starting a Roth IRA while your tax rate is likely at its lowest.
In Your 30s
Balance mortgage savings, retirement, and building taxable brokerage. Automate savings before you see the money. Even 1% more per year compounds dramatically.
In Your 40s
With kids possibly less dependent, accelerate savings. Evaluate whether your current trajectory hits your retirement number using a calculator.
In Your 50s
Max out all catch-up contributions. Calculate your retirement number seriously. Consider downsizing the home eventually to unlock equity.