Here’s how much the top 10% of Americans by net worth have saved for retirement

The top 10% lead different lives compared to the rest of us. Many ordinary workers struggle to put any money aside for retirement amid mounting bills and competing priorities. In fact, for those in the 25th to 49.9th percentiles by net worth, the average retirement savings was just $22,380 in 2022, according to a Motley Fool report.

But the wealthiest Americans often find it easier to reach their retirement goals. Here’s a closer look at how much the top 10% have saved for retirement.

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Here’s the median retirement account balance of the top 10%

The top 10% of Americans by net worth had an average retirement account balance of $900,000 as of 2022. Note that this is the median, not the average, which can be skewed by particularly high or low numbers. That’s the case here, as the average retirement account balance for the top 10% was close to $1.3 million in 2022.

Those are already big numbers, but perhaps what’s even more shocking is how quickly average savings among these high earners have grown over the past few decades. Thirty-five years ago, the top 10% had only $110,668 saved (in 2022 dollars). Since then, they’ve seen their average savings grow by $789,332 — that’s more than a 700 percent increase.

Meanwhile, those in the bottom 25% saw their average retirement savings grow from just $2,306 in 1989 (in 2022 dollars) to $6,000 in 2022. While that’s a 160% increase, it didn’t have a significant effect on the retirement of this group. training.

How to grow your retirement savings

Most Americans won’t see retirement account balances close to those of the top 10%, but it’s still important to put away as much as possible to give yourself the best chance at a comfortable future.

Regular contributions are essential. Even if you can only set assistant a few dollars a month, start there. Then aim to increase your contributions by a certain percentage of your salary each year or whenever you get a raise.

If you qualify for a 401(k) match, do your best to claim it every year if you can afford it. Once you’ve gotten the full match from your employer, you can switch to the retirement account that you think gives you the best benefits. For example, if you expect your income to be about the same or higher in retirement, you may want to put your cash into a Roth account so you can enjoy tax-free retirement withdrawals.

Those who really don’t think they’ll be able to save as much as they need may need to explore other options. You might consider working part-time in retirement or delaying it to give you extra time to save.

You can’t know exactly how much you’ll end up putting away for retirement or how much your savings will grow. So retirement plans must be able to adapt over time. Having savings goals is great, but make sure you set aside time to review those goals at least once a year to make sure they’re still appropriate for your needs.