From Yahoo Finance: 2025-05-05 06:01:00

Many Americans may delay or abandon retirement due to inadequate savings. Middle-class households face a common retirement hurdle of lacking individual retirement accounts or investment funds. The Pew Research Center estimates middle-class income to range from $52,000 to $160,000 annually, impacting retirement savings allocation.

Average retirement savings for all families is $333,940, while the median is $87,000, excluding outliers. Young adults typically have lower savings due to student debt and early career earnings. Retirement savings increase as individuals move into higher-paying positions, with about 60% of households having retirement accounts in this bracket.

As individuals near retirement age, savings peak before drawing down in retirement years. Peak earning years see growth in retirement savings, with about 62% of households having retirement holdings. Savings decrease as retirees withdraw funds, and the percentage of people with retirement accounts declines.

Factors influencing middle-class retirement savings include income levels, savings rate, investment returns, employment benefits, and financial literacy. To build a robust retirement fund, experts recommend starting early, maximizing employer contributions, diversifying investments, automating savings, living below means, and seeking professional advice.

Read more: How Much the Average Middle-Class Person Has in Their Retirement Fund