How much Americans have in savings

A financially-secure retirement has three nest eggs:

  1. Pension, which is rapidly vanishing for many working Americans.
  2. Social Security: Although Social Security was never intended to be a retiree’s sole source of income, 35% of Americans over the age of 65 rely almost entirely on Social Security payments. (Accounting Degree Review)
  3. Savings: Experts say you should have 5 times your annual salary saved by age 50, 6 times by age 55, and 7 times by age 60.

Again and again, we’ve been told that the average American has too little in savings. According to a 2016 GOBankingRates survey, 35% of all U.S. adults had only several hundred dollars in their savings accounts; 34% had zero savings.

More recently, the news is no better.

Kathleen Elkins reports for CNBC, Oct. 8, 2018, that the median American household has just $11,700 in total savings. That means half of U.S. households have less than $11,700 in savings; 29% of households have less than $1,000.

Personal finance site MagnifyMoney used data from the Federal Reserve and the Federal Deposit Insurance Corp. (FDIC) to break down how much American households at every income level have saved:

  1. Top 1% in income:
    • Average savings $2.5 million
    • Median savings $1.13 million.
  2. Top 10% in income:
    • Average savings: $961,570
    • Median savings: $156,510
  3. 60 to 79.9% in income:
    • Average savings: $133,770
    • Median savings: $77,020
  4. 40 to 59.9% in income:
    • Average savings: $65,830
    • Median savings: $34,020
  5. 20 to 39.9% in income:
    • Average savings: $29,080
    • Median savings: $0
  6. Bottom 20% in income:
    • Average savings: $8,720
    • Median savings: $0

What a median savings of $0 means is that half of Americans whose incomes are in the bottom 39.9% not only have no savings, they are in debt.

How much have you saved, compared to the average savings of your income group?

~Eowyn

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Kelleigh Nelson
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Kelleigh Nelson

Which probably means there’ll be a lot of these folks living in govt. housing which is reduced cost, and funded by guess who…the taxpayer!

Hawkmoon
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Hawkmoon

Many companies had pension plans, provided good salaries, and helped fund local,county,state, & federal expenses. Then the America hating Globalists/Liberals/Bolsheviks decided to outsource tens of millions of our jobs to not only destroy the American middle & working class, but to build up communist China (as planned) via their “Free Trade” (dirty & treasonous) deals

Trump Is Right on Trade
https://buchanan.org/blog/trump-is-right-on-trade-124822

Alma
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Alma

I attended various seminars my company offered for those that were reaching retirement age. They advised to save as much as we could to ensure a worry free time, to pay the house, pay the car and eliminate all debts. Eight years have passed and it has been a good ride for me and the “girls” that followed the advice.

Meremortal
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Meremortal

Most Americans don’t live within their means until it’s too late. I panicked at 30 over retirement when I started reading financial books. For 30 years my friends and clients had newer, nicer cars and homes than I did. Then at 60 I retired and they all wondered how I could do that and they couldn’t when they “looked” so much more prosperous than me.

Recynd77
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Recynd77

My father encouraged me and my sisters to start IRAs when we were 16 years old, and he helped fund them for several years after. After ensuring that the money was being well-managed, I let it sit and grow, enjoying the benefits of compound interest (that’s how the 1% does it!). I, in turn, encouraged my son to do the same, and he got bit by the investing bug. He’s KILLING it in the emerging cannabis sector, though his retirement is in the more conservative S&P. Retirement seemed so far away for so long! However, I always figured that no… Read more »

CalGirl
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CalGirl

Neither my husband nor I could save much in our working lives, mainly b/c we were children of WW II parents. They capitalized on all the “free” stuff from the government for their service (deserved) in WW II…but, they thought that we should find our own ways—much or at least some of it on the “government tab, too.” There was not so much the same sorts of funding for us. So, we largely paid for ourselves…then we paid for our own kids (b/c the world had changed by the time we and our kids…2 generations…went through the public school and… Read more »

Laura
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Laura

I don’t have a lot saved but I’ve been dealing with a low income most of my working life and working part time hours, now in my thirties. A lot of this is due to having to do caregiving from an early age and still continuing to do it, working part-time and I stayed for a while at a job that was underpaying me (and many others) in spite of the fact that I have a college degree. I even worked 2 jobs for a while, made some headway but still low income living in an expensive place and not… Read more »

GIA
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GIA

I totally relate to CalGirl’s post above. And according to the survey above, while my spouse earns a good income we have little in liquid savings because our debt to income ratio drops us down. Don’t get me wrong, we don’t go crazy on vacations or credit cards, no…we have “relative” expenses that we can’t write off; a dependent parent and equally now, a dependent adult child. We also have a second property that earns no additional income as a rental but to sell it would be a wash or we’d lose because by the time we pay fees, etc.… Read more »

pigpen51
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pigpen51

I and my wife have been blessed, indeed. Not because of any intelligence in the stock market on my side, but by the fact that we are debt free, and have no credit cards. I take that back, we have on for Meijers, a grocery/housegoods chain. We have that only because we get 10 cents off a gallon of gas at their pump, if we use that card. So we use it, and then, my wife goes home, and just as soon as she sees it appear online, she pays if off. I had a decent amount in my 401K… Read more »