Among U.S. families that held retirement accounts in 2022, the Federal Reserve reported a median balance of $86,900 and a mean balance of $334,000, in 2022 dollars. These are useful reference points, but neither is a personal target.
The figures come from the Federal Reserve's 2022 Survey of Consumer Finances. The survey counted retirement accounts including IRAs, Keogh accounts, and account-type employer plans such as 401(k), 403(b), and Thrift Savings Plan accounts. It found that 54.3% of families held retirement accounts.
Average vs. median retirement savings
| Measure | 2022 value | What it tells you |
|---|---|---|
| Families holding retirement accounts | 54.3% | Not every household is represented in the balance figures. |
| Median balance among holders | $86,900 | The middle balance: half of account holders had less and half had more. |
| Mean balance among holders | $334,000 | The arithmetic average, pulled upward by large balances. |
The wide gap is the main takeaway. A small share of very large accounts raises the mean, so the average can feel far removed from a typical household's experience. The median is often better for context, but it still does not account for age, income, pension coverage, debt, or regional cost differences.
Why an average cannot tell you whether you are on track
- It is not age-specific: a national total blends early-career savers, mid-career households, and people already retired.
- It does not include your future contributions: the saving habit and employer match may matter as much as today's balance.
- It does not know your spending: a household planning to spend $45,000 a year needs a different target from one planning to spend $110,000.
- It excludes important context: pensions, Social Security, housing, taxes, and other assets can change the plan substantially.
Use the data as context, then make a personal target
Start with investable assets—not just retirement accounts—and estimate the annual spending they may need to support. Divide that spending target by a withdrawal-rate assumption to produce an initial FI number.
That calculation is illustrative, not financial advice. It does give you a way to translate a comparison question into a planning question: how far am I from my target, how much am I saving, and when might I get there under stated assumptions?
Ways to improve retirement savings progress
First, understand your workplace plan and capture any available employer match. The IRS lists the current contribution limits for workplace plans and IRAs; eligibility, plan rules, and tax treatment vary. Next, set a recurring contribution you can sustain, revisit expensive debt, and update the plan when income or spending changes.
For a broader savings benchmark, read how much you should have saved by age. To calculate the balance that connects to your spending goal, start with your financial independence number.
Make your retirement balance actionable
Beacon helps you track investable assets and map them to a projected FI date.
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