Retirement planning is far from the minds of most U.S. workers, who may not face the same likelihood of retirement that their parents did. The value of their average retirement savings may not compare to when older generations were getting ready for retirement.
That doesn’t mean workers shouldn’t try to save for retirement, though. If you need senior care later on in life, it can be useful to have a retirement account to dip into. And over time, that account can grow to hundreds of thousands of dollars.
Keep reading below to learn more about saving for retirement, and how much money most people have for it.
The Average Retirement Savings Account Differs on Age
If you’re researching retirement savings, then you should keep some key details in mind. The most important is that everyone is different. Everyone’s retirement plans are different — their ages are different, and so are the ages they plan to retire at.
Sometimes, people genuinely enjoy their careers and would want to continue doing them as long as possible. Sometimes, people just want to save as much as possible before quitting their jobs forever. You need to consider things like this when planning your own retirement.
Generally, people between 20 and 29 years old have around $15,000 in their retirement accounts. The amount then compounds more and more for each decade after that. For many reasons, people usually have more than $175,000 in retirement by the time they’re 60 years old.
Retirement Planning Gets Easier With Time
People’s retirement accounts tend to balloon as they get older. Theoretically, people build equity throughout their lives. By the time they reach retirement age, they might own their homes and cars.
They might also have a separate savings account they can dip into if their retirement account is not sufficient. Regardless, as people build equity it becomes easier to hold onto cash.
So don’t worry if you don’t have much in your retirement account at 25 years old! There is still a lot of time, and there is still time to gather wealth, setting yourself up for retirement.
There Are Many Misconceptions About Retirement
When retirement was first established in the U.S., the economy was dramatically different. The minimum wage was designed to give families a chance to thrive, and people could save for retirement with it.
But now, depending on where people live, triple-digit retirement accounts may not be enough. Senior living community misconceptions are found everywhere, and they can cost more than people realize.
A lot of the advice you hear from experts may not be completely in touch with your economic reality. Keep that in mind when researching how to save.
Your Retirement Saving Plan Is Important Throughout Life
Having a retirement account is more than just a way to stop working later in life. For many workers, it’s a glimmer of hope that they may be able to relax at some point. Putting money in it can be a way to save for the future, or even save for unexpected bills.
The average retirement savings amount is different for everyone based on their financial situation. A retirement saving plan can help people plan for the future and find financial stability. And to learn more about how to save for retirement, just keep reading our website here!