How much Americans have in savings

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by Dr. Eowyn

A financially-secure retirement has three nest eggs:

  1. Pension, which is rapidly vanishing for many working Americans.
  2. Social Security: Although Social Security was never intended to be a retiree’s sole source of income, 35% of Americans over the age of 65 rely almost entirely on Social Security payments. (Accounting Degree Review)
  3. SavingsExperts say you should have 5 times your annual salary saved by age 50, 6 times by age 55, and 7 times by age 60.

Again and again, we’ve been told that the average American has too little in savings. According to a 2016 GOBankingRates survey, 35% of all U.S. adults had only several hundred dollars in their savings accounts34% had zero savings.

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More recently, the news is no better.

Kathleen Elkins reports for CNBC, Oct. 8, 2018, that the median American household has just $11,700 in total savings. That means half of U.S. households have less than $11,700 in savings; 29% of households have less than $1,000.

Personal finance site MagnifyMoney used data from the Federal Reserve and the Federal Deposit Insurance Corp. (FDIC) to break down how much American households at every income level have saved:

  1. Top 1% in income:
    • Average savings $2.5 million
    • Median savings $1.13 million.
  2. Top 10% in income:
    • Average savings: $961,570
    • Median savings: $156,510
  3. 60 to 79.9% in income:
    • Average savings: $133,770
    • Median savings: $77,020
  4. 40 to 59.9% in income:
    • Average savings: $65,830
    • Median savings: $34,020
  5. 20 to 39.9% in income:
    • Average savings: $29,080
    • Median savings: $0
  6. Bottom 20% in income:
    • Average savings: $8,720
    • Median savings: $0
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What a median savings of $0 means is that half of Americans whose incomes are in the bottom 39.9% not only have no savings, they are in debt.

How much have you saved, compared to the average savings of your income group?

~Eowyn

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