How the Average Retirement Account Compares to the Top 10% of Savers

If you’ve ever wondered how well you’re doing with your retirement savings, you’re not alone. Most Americans have at least some desire to “keep up with the Joneses,” after all.

Beyond that, comparing your nest egg balance to others can give you a real-world sense of whether you’re on track to meet your retirement goals. And if you’re a super saver, the peer group you’ll most want to know about is those in the top 10%.

With that in mind, here’s what the data says about how the average retirement account compares with the top 10% of savers.

Retirement account balances in America have an incredibly wide dispersion. Even calculating the “average” balance requires defining some terms, especially “median” and “mean.”

The median retirement account balance is the figure that sits right in the middle of all available data. In other words, 50% of Americans have larger balances and 50% have smaller balances.

The mean retirement account balance is the mathematical average of all account balances, calculated by dividing the total amount of assets in retirement accounts by the number of accounts. This average typically skews much higher than the median balance, as large balances at the top can dramatically inflate it.

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According to the Federal Reserve’s most recent Survey of Consumer Finances, published in October 2023, 54.3% of American families had retirement accounts in 2022. Among those who did, here were the average reported balances:

The median balance was $86,900.

The mean balance was $334,000.

That enormous gap — from $86,900 to $334,000 — provides a clear picture of how high-balance savers meaningfully raise the “average” account balance. Depending on what type of comparison you’re trying to make, the median retirement account balance might be the more appropriate figure to use.

There’s no definitive study showing exactly how much the top 10% of savers in America have in their retirement accounts. But data from the Congressional Research Service allows for a fair approximation.

According to CRS data, which is based on the Fed’s SCF:

4.6% of American households had more than $1 million in retirement accounts

4.7% had $500,000 to $1 million in retirement accounts

Add those two figures together and they show that about 9.3% of households have $500,000 or more in their retirement accounts. This can act as a rough proxy for the “top 10%.”

Considering the countless headlines suggesting that Americans “need” at least $1 million in their retirement accounts, the data shows that less than 5% of households actually reach that lofty level.

The SCF data allows for a clear comparison between average savers and the top 10%:

Average (median) retirement balance among account holders: $86,900

Top 10% threshold (approximate): $500,000+ in retirement accounts

The typical American household with retirement savings has less than $90,000 set aside. By contrast, households in the top 10% often hold half a million dollars or more, with many account balances exceeding $1 million. In short, the top 10% of savers hold at least 5x to 10x more in their account balances than the average American.

Earning a high salary and keeping your expenses low can help you save more. But even modest earners can find a way to build a seven-figure nest egg.

Research from the Federal Reserve, Vanguard, Employee Benefit Research Institute and the Congressional Research Service consistently shows that households with the largest retirement balances share these characteristics:

They save consistently for longer: Time is the multiplier. Starting early matters, even with modest amounts, because compounding has more years to work.

They contribute at higher rates, often capturing the full employer match: Employer contributions can be a major accelerant if fully utilized.

They stay invested through volatility: The top savers are more likely to maintain long-term allocations that participate in equity growth rather than sitting in cash.

They avoid “leakage”: Loans, early withdrawals and cash-outs at job changes can erase years of progress. Rollovers, when done carefully, keep compounding intact.

These behaviors allow compounding to work uninterrupted over decades, producing dramatically larger balances than those of typical savers.

If your retirement account balance is about $87,000, you’re roughly near the median across America, according to SCF data. But to be in the top 10%, you likely should target a balance of at least $500,000. Saving consistently over time, remaining invested and avoiding withdrawals are all ways you can help yourself reach that goal.

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