The latest data from the Federal Reserve's 2022 Survey of Consumer Finances reveals that 61% of US households headed by individuals in their 50s have retirement accounts like 401(k)s or IRAs. Including pensions, this percentage rises to approximately 70%, leaving 30% of households in this age bracket without a key financial support as retirement nears.
The Report showed that retirement savings increase with age. Despite this, numerous Americans nearing retirement either have inadequate savings or none at all, pointing to the urgent need to evaluate personal financial positions and potential steps that can be taken. Even among households with retirement savings, these may not cover a regular retirement duration.
As the data shows, households in their 50s have an average balance of around $162,000 in their retirement accounts. Following the 4% rule for retirement withdrawals, this would produce a yearly income of $6,500. In addition to this, many also rely on Social Security which, in April 2026, provided average yearly benefits of $25,000 USD for a single retiree or $50,000 for households with two recipients.
Pensions can provide extra support but are less commonly available than in the past. Combined, this leads to a moderate annual budget of around $31,500 for single retirees and $56,500 for households with two benefits. For some, this may cover basic requirements but not additional or unexpected costs.
Financial services provider, Fidelity, suggests having six times your salary saved by age 50 and eight times by age 60. Yet, for many, these savings targets may look challenging. However, several methods can bolster retirement savings for those in their 50s. These include utilizing catch-up contributions, obtaining company matches on contributions for those with employer-sponsored plans, or opening individual retirement accounts for those without.
Altering spending to maximize savings, such as by reducing housing costs, delaying large purchases or curtailing discretionary expenses, can also make a difference, demonstrating that even small steps can significantly enhance financial security.