The average savings account balance varies widely by age and income

There is no single "average" savings account balance that applies to everyone. The Federal Reserve surveys household finances and finds that the median savings account balance — the middle point where half of people have more and half have less — is somewhere between $5,000 and $10,000, but this number shifts year to year and depends heavily on who you are.

Age matters significantly. People in their 20s typically have less saved than people in their 50s, straightforward because they have had less time to accumulate money. Income matters too: someone earning $30,000 a year will usually have a different savings pattern than someone earning $100,000. Where you live, whether you own a home, and whether you have dependents all affect how much you keep in savings.

The reason this matters to you is straightforward: if you are comparing your own balance to a national average and feeling behind, you may be comparing yourself to the wrong group. A more useful question is whether your savings matches your own situation — your income, your expenses, and your goals.

Key Takeaways

  • The median savings account balance in the United States is between $5,000 and $10,000, but this varies by year and data source.
  • Age is one of the strongest predictors of savings balance — people in their 60s typically have saved far more than people in their 20s.
  • Income level, family size, and whether you own a home all affect how much money people keep in savings accounts.
  • Comparing your balance to a national average is less useful than comparing it to your own monthly expenses and financial goals.

How savings balances differ by age group

The Survey of Consumer Finances, conducted by the Federal Reserve every three years, breaks down savings by age. People aged 20 to 29 have median savings balances significantly lower than people aged 50 to 59. This is not because younger people are worse with money — it is because they have had fewer years to save and often have higher expenses relative to income (student loans, starting a career, raising young children).

People in their 60s and early 70s typically have the highest savings balances, partly because they have worked longer and partly because they may have received inheritances or sold property. After age 75, median savings often decline as people draw down what they have saved during retirement.

The gap between age groups is large enough that using a single national average tells you almost nothing about whether your own savings is on track. A 25-year-old with $3,000 saved is in a different position than a 55-year-old with $3,000 saved.

What income level tells you about savings patterns

People with higher incomes save more in absolute dollars — someone earning $150,000 a year will usually have a larger savings account than someone earning $40,000. But the relationship is not straightforward. Some high-income earners spend everything they make, while some lower-income people prioritize saving despite tight budgets.

The Federal Reserve data shows that households in the top income quartile (the highest 25 percent of earners) have median savings balances that are many times larger than households in the bottom quartile. However, within each income group, there is enormous variation. Two people earning the same salary can have very different savings accounts depending on their expenses, debt, and priorities.

Why national averages can mislead you

A national average is pulled from millions of people in different life stages with different goals. Some people are saving for a down payment on a house and keep large balances. Others are retired and drawing down their savings. Some have high-interest debt they are paying off instead of saving. Some have just experienced a job loss or medical emergency that depleted their account.

If you have $2,000 in savings and you read that the average is $8,000, it is straightforward to feel like you are failing. But that average includes people who inherited money, people who sold a business, people who are 70 years old, and people who have been working for 40 years. It does not tell you whether $2,000 is right for your situation.

What matters more than the national average

A more useful benchmark is your own monthly expenses. Financial advisors often suggest keeping three to six months of expenses in a savings account for emergencies. If your monthly expenses are $3,000, that means a target range of $9,000 to $18,000. If your monthly expenses are $1,500, your target is $4,500 to $9,000.

This approach accounts for your actual life. It does not matter what the national average is — what matters is whether you have enough to cover an unexpected job loss, a medical bill, or a major repair without going into debt.

Beyond emergency savings, your target balance also depends on your goals. If you are saving for a car down payment, you might aim for $5,000. If you are saving for a house down payment, you might aim for $30,000 or more. These are personal targets, not national ones.

How savings balances have changed over time

The Federal Reserve has tracked savings for decades. In general, median savings balances have not grown as fast as inflation, meaning that the purchasing power of what people save has actually declined over time. This reflects both wage stagnation and rising costs for housing, healthcare, and education.

The COVID-19 pandemic temporarily increased savings balances as people spent less on travel and dining out, but those balances have since declined as inflation and higher costs have eaten into household budgets. This is one reason why looking at historical averages can be misleading — the economic conditions that produced those numbers may not match your current situation.

Frequently Asked Questions

Is $5,000 in savings considered good?

It depends on your monthly expenses and your age. If you earn $30,000 a year and have $5,000 saved, that is roughly two months of expenses — a reasonable emergency fund. If you are 55 years old and have only $5,000 total saved, you may want to prioritize saving more for retirement. The number itself matters less than whether it covers your when ready needs and aligns with your stage of life.

What percentage of Americans have no savings at all?

Surveys vary, but roughly 20 to 30 percent of American adults report having no emergency savings. This does not mean they are irresponsible — it usually means their income barely covers their expenses, or they have experienced a recent emergency that depleted their account. If you are in this position, even small amounts saved regularly can build a buffer over time.

Should I compare my savings to my friends' savings?

No. Your friends may have different incomes, different family situations, different debt, and different goals. Someone with a high salary might have low savings because they spend heavily. Someone with a modest salary might have high savings because they prioritize it. The only useful comparison is between your current savings and your own target based on your expenses and goals.

Does the average savings account balance include retirement accounts?

No. The Federal Reserve surveys focus on liquid savings — money in regular savings accounts that you can access quickly. Retirement accounts like 401(k)s and IRAs are tracked separately and are typically much larger. When you see a national average for savings, it is not counting retirement money.