Average American Household Savings Near Retirement | SafeMon

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Discover the average savings of American households near retirement. Learn how to secure your future with safe money alternatives. Explore more at SafeMoney.com Proactive planning is a critical step for a secure retirement. But just how prepared are American households for their retirement years? Of course it’s important to recognize all households will have different retirement needs. People vary in their life circumstances and objectives, and as a result, their financial circumstances and requirements will also vary. Some couples may require a seven-figure nest egg to feel secure. Others are confident their Social Security benefits will be suitable for their future needs. Given how Americans have such a wide-ranging outlook on finances in retirement, how people interpret statistics such as average American household retirement savings will vary. What may be the start of a looming crisis for some may be a minor challenge for others. With that said, you should develop an informed mindset toward your own finances. Then use this data to help judge your progress in retirement preparation. Let’s cover some important details regarding the current American retirement landscape below. What Does the Average Household Have in Savings? In June 2015, the U.S. Government Accountability Office released a report detailing the current financial status of households aged 55-64, among other factors. The findings were insightful: The average American household nest egg near retirement is $106,000 The median American household near retirement has $10,000-20,000 in savings 41% of the households didn’t have any retirement savings at all What about These Households Which Didn’t Save? The picture may seem grim among the 41% of households with no retirement savings. However, there’s more than meets the eye. Consider the following data: In the 41% of households subset, 56% are homeowners, with 22% having their home fully paid for Having no mortgage eliminates a long-term debt holding which would put pressure on income in retirement Again in this subset, 32% of households have a defined-benefit plan (or pension) Report doesn’t account for how much these households will be receiving in future Social Security benefits Given the yearly income for this subset is $26,000, average Social Security be