55–64 and Saving: Compare Your Nest Egg to the Average American's Retirement Savings
- Adults ages 55–64 typically hold more savings than younger peers, but trail behind older retirees in overall balances.
- Experts stress that retirement can last 30+ years, making it essential to keep investing for long-term growth, even after leaving the workforce.
- Contributing just a few hundred dollars monthly to a retirement account—plus using catch-up contributions—can significantly boost your nest egg.
- For short-term savings, consider high-yield savings accounts or top-rated CDs to earn interest while keeping funds accessible.
Key Takeaways
What Americans Ages 55–64 Have Saved—and How You Compare
If you're in your 50s or early 60s, you may have more financial flexibility than in earlier decades. With fewer obligations like college tuition or child-rearing, this stage can be ideal for accelerating retirement savings.
Whether you're still working or nearing retirement, age plays a major role in your ability to save. According to the Federal Reserve’s 2022 Survey of Consumer Finances, median bank account balances ranged from $5,400 for those under 35 to $13,400 for ages 65 74.
Americans ages 55 64 fall in the middle, with a median bank balance of $8,000 among the 98.3% who hold accounts.
We use median figures not mean averages to give a more accurate picture of typical savings. The median value represents the midpoint: half of Americans surveyed reported more savings, and half reported less.
This approach helps reduce distortion from extremely high or low balances, offering a clearer benchmark for understanding where your savings stand compared to others.
Where Americans Ages 55–64 Are Stashing Their Savings
Beyond bank accounts, people in the 55 64 age bracket hold a variety of assets and investments. According to the Federal Reserve’s 2022 data, over half (57%) have retirement accounts, making it the most common savings vehicle for this group.
Other holdings include stocks (19.2%), CDs (6.6%), and savings bonds (8.5%), with median values ranging from $3,000 to $30,000. While fewer own directly held bonds, those who do report significantly higher values suggesting concentrated ownership among a small group of high-net-worth individuals.
Why Bond Values Look High—and What “Directly Held” Really Means
“Directly held” assets refer to investments outside of retirement accounts such as corporate or municipal bonds owned outright. In the Federal Reserve’s 2022 survey, the median value of directly held bonds among Americans ages 55 64 was $400,000, far higher than other asset categories.
But only 1.2% of people in this age group reported owning these bonds. This small segment likely holds multiple high-value bonds, or reported face values from account statements rather than market values, which may have been lower in 2022. That’s why directly held bond data can appear skewed compared to more common savings vehicles.
There’s no one-size-fits-all savings target it depends on your lifestyle, location, and income sources. If you have pensions or other retirement income beyond Social Security, you may not need as much in savings, says Marguerita Cheng, CFP and founder of Blue Ocean Global Wealth.
If you’ve spent years supporting children or paying off debt, now may be the time to redirect cash flow toward retirement. Cheng shares these actionable tips:
Explore Your Social Security Options
Create an account at SSA.gov to estimate your benefits at age 62, full retirement age, and age 70. You’ll receive the highest payout if you wait until 70, but earlier collection may suit certain situations.
Think Like a Long-Term Investor
Even in your 60s, you’re likely planning for 30+ years of retirement. If you’ve freed up money by paying off debt, split it between short-term savings and long-term investments to stay financially resilient.
Use Taxable Funds Strategically for College Costs
If you’re juggling college expenses and retirement, Cheng advises not relying solely on 529 plans. Paying some costs with taxable money may qualify you for education tax credits, boosting your overall financial efficiency.
If you pay $4,000 in qualified college expenses using taxable funds, you may qualify for the $2,500 American Opportunity Tax Credit (AOTC). This credit applies to the first four years of higher education.
Another option the Lifetime Learning Credit covers all education levels, but you can’t claim both credits for the same student in the same tax year. Choosing the right credit depends on your education timeline and tax strategy.
Consider a Roth IRA—and Talk Through Retirement Goals Together
Investing in a Roth IRA can simplify your future withdrawals since qualified distributions are tax-free, says Marguerita Cheng, CFP. If you're over 50, you’re also eligible for catch-up contributions, but you don’t need to max out the annual limit. Even $250/month adds up to $3,000/year, helping you build retirement savings without straining your budget.
Cheng also encourages couples to discuss retirement plans openly. “This is a great time to talk about your vision even if it’s different,” she says. “Our preferences are shaped by experience, and honest conversations help align financial decisions with personal goals.”
Boost Your Savings with High-Yield Accounts and CD Strategies
If you’re ready to grow your short-term savings, now’s a great time to explore high-yield savings accounts and certificates of deposit (CDs) especially while interest rates remain elevated.
A high-yield savings account gives you full access to your money and earns a competitive return. Rates are variable, but top accounts currently offer 4.00% 5.00% APY. Financial planner Marguerita Cheng recommends this option for building an emergency fund, especially if cash reserves are low.
If you don’t need immediate access, a CD offers a fixed rate for a set term typically 3 months to 5 years. As of late September 2025, top CDs are paying up to 4.60% APY, locking in returns regardless of future rate changes.
While less flexible, Cheng suggests using CDs alongside high-yield accounts and recommends a CD laddering strategy to maximize guaranteed returns while maintaining staggered access to your funds.
The top rates quoted here reflect the highest nationally available yields Investopedia identifies through daily research across hundreds of banks and credit unions. These are not the same as the national average, which includes all institutions many of which offer very low interest rates, especially large banks.
That’s why shopping around matters. The best rates you can find may be 5x, 10x, or even 15x higher than the average making a big difference in how fast your savings grow.
