Average Savings Rate by Age (2025)

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

Savings Rates by Age Group

Age Group	Total Savings Rate	401(k) Rate	Avg Monthly Saved	Notes
Under 25	+7%	5.8%	+$280/mo	Lowest earners; often no employer match. High student debt impact.
25–34	+9.7%	8.8%	+$590/mo	Student loan payoff competing with savings. Employer matches increase effective rate.
35–44	+10.8%	9.7%	+$980/mo	Peak family expenses (mortgage, childcare) constrain savings rate despite higher income.
45–54	+12.4%	10.3%	+$1,450/mo	Kids less dependent; income peaks. Catch-up contributions available at 50.
55–64	+14.6%	11.5%	+$1,870/mo	Peak savings years. Catch-up contributions heavily utilized. Pre-retirement acceleration.
65+	-8%	—	$1,100/mo	Decumulation phase — withdrawing from savings. Negative savings rate is normal and expected.

Savings Rates by Income Level

Savings rates increase dramatically with income. The wealthiest Americans save a disproportionate share of national income.

Income Group	Avg Income	Savings Rate	Note
Bottom 20%	$14,000	-18.2%	Spending exceeds income (deficit spending)
Second 20%	$32,000	+2.1%	Barely saving; emergency fund building
Middle 20%	$56,000	+6.8%	Near national average savings rate
Fourth 20%	$93,000	+12.4%	Significant retirement contributions
Top 20%	$215,000	+23.7%	Max tax-advantaged + significant investing
Top 5%	$430,000	+37.2%	Investment portfolios drive most wealth growth

How Much Should You Save?

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%

Practical Savings Tips by Life Stage

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.

Related Tools

Average Retirement Savings by Age

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Average Net Worth by Age

Total wealth benchmarks including home equity

Retirement Savings Calculator

See when you can retire

401(k) Contribution Calculator

Optimize your contribution rate and match

Methodology & Sources

• National savings rate: U.S. Bureau of Economic Analysis (BEA), Personal Saving Rate series (PSAVERT), November 2024
• Age-based savings rates: BLS Consumer Expenditure Survey (CE) 2022, Tables by age of reference person; retirement rates from Vanguard "How America Saves 2024"
• Income quintile data: BLS Consumer Expenditure Survey 2022, Tables by income quintile
• Note on definitions: BEA personal savings rate (income minus outlays / income) differs from household survey-based rates. The BLS CE survey captures consumer units (households), not individuals. Rates are approximate blends adjusted for consistency.