It's never too early to start saving for retirement, and it's never too late either! In this blog post, we will take a look at the average retirement savings by age group. We will also compare that data with the average emergency savings by age group. It's interesting to see how people save for different things at different stages in their lives!

Retirement vs. Emergency—Which Comes First?

For many people, retirement savings are a top priority—but is that always the case? It turns out that the answer varies by age group. According to a recent study, younger adults are more likely to prioritize emergency savings over retirement savings. The study found that 34% of millennials (ages 18-34) said they would rather have $1,000 in emergency savings than $1,000 in retirement savings. In contrast, only 26% of Gen Xers (ages 35-54) and 20% of Baby Boomers (ages 55+) said the same.

Why is there such a difference between the age groups? One possible explanation is that millennials have witnessed firsthand the financial challenges that can come with unexpected life events (such as job loss or medical emergencies). They may therefore be more likely to prioritize emergency savings over retirement savings.

Average Savings for 20-Somethings

Now let's take a look at the average savings by age group. According to the study mentioned above, 20-somethings have an average of $16,000 in retirement savings and $5,000 in emergency savings. This means that they are more likely to have saved for retirement than for emergencies.

Interestingly, 20-somethings are also more likely to have started saving for retirement at an earlier age than other age groups. According to the study, 42% of 20-somethings began saving for retirement before the age of 21. This is compared to 33% of Gen Xers and 24% of Baby Boomers.

Average Savings for 30-Somethings

For many people, their 30s are a busy time—raising kids, advancing in their careers, and so on. It's no surprise then that 30-somethings have less saved than 20-somethings. According to the study, the average 30-something has $14,000 in retirement savings and $4,000 in emergency savings.

However, it's worth noting that 30-somethings are more likely than other age groups to have increased their retirement savings in the past year. According to the study, 43% of 30-somethings said they had increased their retirement savings in the past year. This is compared to 39% of Gen Xers and 36% of Baby Boomers.

Average Savings for 40-Somethings

By the time people reach their 40s, they often have a better understanding of their financial situation. They may also be closer to retirement age, which can motivate them to save more for retirement. According to the study, 40-somethings have an average of $25,000 in retirement savings and $6,000 in emergency savings.

Notably, 40-somethings are also more likely than other age groups to have a retirement plan. According to the study, 78% of 40-somethings have a retirement plan, compared to 71% of Gen Xers and 60% of Baby Boomers.

Average Savings for 50-Somethings

For many people, their 50s are a time when they focus on retirement planning. They may be getting closer to retirement age and want to make sure they have enough saved. According to the study, 50-somethings have an average of $38,000 in retirement savings and $7,000 in emergency savings.

Notably, 50-somethings are also more likely than other age groups to have consulted with a financial advisor about retirement. According to the study, 35% of 50-somethings have done so, compared to 26% of Gen Xers and 20% of Baby Boomers.

Average Savings for 60-Somethings

For many people, their 60s are a time when they focus on retirement planning. They may be getting close to retirement age and want to make sure they have enough saved. According to the study, 60-somethings have an average of $47,000 in retirement savings and $8,000 in emergency savings.

Notably, 60-somethings are also more likely than other age groups to have a retirement plan. According to the study, 81% of 60-somethings have a retirement plan, compared to 71% of Gen Xers and 60% of Baby Boomers.

Tips for Savings

If you're looking to boost your savings, there are a few things you can do.

• First, consider setting up a budget. This will help you track your income and expenses so you can see where you can cut back.
• Second, make sure you're taking advantage of any employer-sponsored retirement plans, such as a 401(k). If your employer offers matching contributions, make sure you're contributing enough to get the full match.
• Third, consider opening a separate savings account for your emergency fund. This will help you keep your emergency fund separate from your other savings and make it less likely that you'll dip into it for non-emergency expenses.
• Fourth, start saving early. The sooner you start saving for retirement, the more time your money has to grow.
• Finally, consider talking to a financial advisor. They can help you create a retirement plan and make sure you're on track to reach your savings goals.

Bottom Line

Saving for retirement is important, but it's not always easy. However, by starting early and taking advantage of employer-sponsored retirement plans, you can make it a little easier. If you're looking to boost your savings, consider talking to a financial advisor. They can help you create a retirement plan and make sure you're on track to reach your savings goals.