People between the ages of 55 and 64 in the U.S. have an average of around $8,000 in bank savings. That amount is higher than what many younger adults hold, yet it still trails the savings of those already entering retirement. Even so, this life stage often brings financial breathing room. With fewer ongoing family expenses, attention can finally shift toward long-term planning.
That opportunity shouldn’t be underestimated. Financial professionals note that retirement frequently lasts 30 years or longer, which means investment growth still matters well beyond midlife. Ongoing contributions—particularly catch-up contributions allowed after age 50—can steadily strengthen long-term security.
At the same time, some money needs to remain easily accessible. High-yield savings accounts and certificates of deposit offer a practical place for short-term funds, providing modest growth without added risk.
Average Savings by Age and What It Means
Savings tend to grow with age. According to the Federal Reserve’s 2022 Survey of Consumer Finances, median balances in bank accounts show a clear upward trend:
| Age Group | Median Balance (Bank Account Holders) |
|---|---|
| Under 35 | $5,400 |
| 35–44 | $7,500 |
| 45–54 | $8,700 |
| 55–64 | $8,000 |
| 65–74 | $13,400 |
| 75+ | $10,000 |
These figures represent median balances, providing a more accurate picture by minimizing the impact of extremely high or low savings. Nearly all Americans aged 55-64 have bank accounts, with 98.3% reporting balances.
Beyond bank accounts, many in this age group hold other assets:
| Asset | % of Households | Median Value |
|---|---|---|
| Savings Bonds | 8.5% | $3,000 |
| CDs | 6.6% | $25,000 |
| Stocks (directly held) | 19.2% | $30,000 |
| Retirement Accounts | 57% | $185,000 |
| Bonds (directly held) | 1.2% | $400,000 |
Directly held bonds stand out with high median values, but only a small portion of this age group owns them. Self-reported values may differ from market rates.
Strategies to Strengthen Retirement Savings
The amount to save depends on individual circumstances. Regional living costs, lifestyle preferences, and additional income streams, such as pensions, can impact the amount required in retirement. Marguerita Cheng, CFP and founder of Blue Ocean Global Wealth, notes that past financial responsibilities—such as children’s college expenses or debt—can impact current saving capacity.
Key strategies include:
One of the simplest starting points is Social Security itself. Creating an account at SSA.gov makes it easy to review estimated benefits at different claiming ages, including 62, full retirement age, and 70. While delaying benefits generally increases monthly payments, claiming earlier can still be the right choice depending on health, income needs, or household planning.
Investment decisions rarely stop at retirement. With many retirees relying on their savings for 25 to 30 years, maintaining exposure to long-term growth remains critical. That often means continuing to invest while also keeping enough cash available for unexpected expenses.
College costs can complicate this stage of planning, but strategy matters. Combining 529 withdrawals with taxable funds can unlock tax credits that reduce overall costs. Paying $4,000 annually from taxable income may qualify students for the American Opportunity Tax Credit, easing the burden of tuition.
Roth IRAs can be particularly useful during this phase of life. Tax-free withdrawals provide flexibility, and catch-up contributions for those over 50 make it easier to increase savings without major lifestyle changes. Over time, even modest contributions can strengthen retirement readiness.
Retirement planning is rarely a solo effort. Talking openly with a partner about expectations—how retirement will look, when it will start, and what matters most—helps prevent mismatched plans and financial friction later on.
Using High-Yield Savings Accounts and CDs Effectively
High-yield savings accounts offer a combination of liquidity and competitive interest rates, often between 4% and 5% APY. They are well suited for emergency funds and near-term expenses.
It is important to note that these “top rates” differ from national averages, which include all banks, often with very low interest rates. Shopping around can yield rates several times higher than the average.
Evaluating Retirement Readiness
The years leading up to retirement call for a balanced approach rather than a single strategy. Ongoing contributions, a thoughtful split between accessible cash and long-term investments, and smart use of tax-advantaged options such as Roth accounts and Social Security choices all play a role in long-term stability.
By maintaining that balance, retirement savings remain both durable and adaptable. For those in the 55–64 age range, careful planning during these years can make the transition into retirement feel far more secure.