Just because you aren’t making a killing, doesn’t mean saving money is impossible—and many Americans are proof positive.
Personal finance advice blog Magnify Money found that 78 percent of households put away money in at least one type of account, whether it be retirement accounts, regular savings, money markets or certificates of deposit (CDs).
Savings tend to be stashed in 401ks and other employer-sponsored retirement plans more than any other savings vehicle (83 percent).
Average account balances are looking good, too. Examining data from the Federal Reserve and Federal Deposit Insurance Corp. (FDIC), Magnify Money reported that the average family has a balance of $175,510 across all accounts.
To be sure, most households aren’t average though. The median balance of $11,700 in total savings better reflects amount accumulated by the typical American.
Regardless, data show a respectable percentage of the non-rich are doing well at saving. Among households who have socked away more than the average balance, 41 percent are in the bottom 80 percent of income.
Around a third of workers, however, could benefit from some savings tips and tricks. Across all income levels, 29 percent of households are falling far behind even the median balance with less than $1,000 saved. What’s more, the bottom 40 percent of earners are more likely than not to have no savings.
Meanwhile, balances among the mega-rich are predictably jaw-dropping. The top 1 percent of earners carry an average balance of $2,495,930 across all accounts.
The report goes on to detail retirement savings-specific stats. Magnify Money discovered:
- As of 2016, 52 percent of households have some sort of retirement account.
- Among all households (including those with no account), the average retirement savings account balance in 2018 is $144,556.
- American households with a 401k, IRA or similar employer-sponsored account have saved an average of $277,670.
- The median household balance is $72,840 among those with an account.
- By generation, Millennials have saved an average of $34,030; Gen Xers have an average of $165,860; and Baby Boomers and those born before 1946 have an average of $380,100 in retirement accounts.
Jessa Claeys is a writer, editor and graphic designer.
