2025 Survey of Consumer Finances: How Your Retirement Savings Compare in Your 40s and 50s

The Federal Reserve's 2025 Survey of Consumer Finances, released October 9, 2026, shows that families headed by someone 45 to 54 with a retirement account held an average of $415,800. For ages 55 to 64 the average was $670,200. Averages run far above typical balances, so compare yourself with the median too.

Every three years the Federal Reserve Board asks thousands of families what they own and owe. The newest results are out, and they are the best snapshot we have of where Americans stand. This article is for readers in their forties and fifties who want a fair yardstick for their own retirement savings. Simply Forties covers retirement money in midlife, and we read the full report so you do not have to.

What the Survey of Consumer Finances measures

The Survey of Consumer Finances is a household study run by the Federal Reserve Board. The 2025 round compares families with the 2022 round, and the Board's summary report is titled Changes in U.S. Family Finances from 2022 to 2025. Dollar figures are adjusted to 2025 dollars, so the comparisons are fair.

A family counts as having a retirement account if it holds an individual retirement account (IRA) or an employer plan such as a 401(k), 403(b) or Thrift Savings Plan. The report finds that 54.9% of all families held one in 2025, up slightly from 2022.

Among families that held an account, the median value rose 11% to $106,000. The average rose 23% to $451,100. That gap between median and average is the main thing to keep in mind as you read on.

How much do people in their 40s and 50s have saved?

Among families with an IRA or employer plan, the average balance in 2025 was $182,400 at ages 35 to 44, $415,800 at ages 45 to 54, and $670,200 at ages 55 to 64. Those are averages. The median at 55 to 64 was $239,000, according to a Motley Fool summary of the survey.

The median is the better yardstick. Half of the families with an account hold less than the median. A few very large accounts pull the average up. If you have $150,000 at 55, you are not an outlier. You are just below a median that already leaves out families with no account at all.

The table below puts the two measures side by side for families that hold an account. The 55-to-64 median comes from the Motley Fool summary, and the rest come from the Federal Reserve report.

Balances rose in every one of these age groups. Part of that is market gains, and part is steady saving. The report notes that the longer run trend in account balances has been upward for a decade.

Who has no retirement plan at all?

About 70% of families aged 45 to 64 took part in some kind of retirement plan in 2025. The Fed counts IRAs, employer plans and traditional pensions in that figure. That leaves roughly three in ten families with none of them.

This is the part that gets lost when headlines quote a big average. A national average blends in families with seven-figure accounts and families with nothing saved. Your own plan should start from your numbers, not from a headline.

Our editors at Simply Forties find the participation figure more useful than any single balance. If you are in the 70%, you have a base to build on. If you are in the 30%, the next section matters most.

Net worth tells a different story at 45 to 54

Retirement accounts are one piece of the picture. The same report shows that median net worth for families aged 45 to 54 fell 6%, from $270,600 to $253,700, between 2022 and 2025. For ages 55 to 64 it rose 3%, from $398,900 to $411,900. Net worth is what a family owns minus what it owes.

Those numbers do not mean your forties and fifties are going badly. A family can add to a 401(k) and still see net worth slip if debts or housing costs grew faster. The survey does not explain the dip for this age group, and we should not guess.

What it does show is that balance sheets in midlife are mixed. Savings are growing, but so are the pressures. Our look at old 401(k)s from past jobs covers one easy way to take stock, since lost accounts hide real money.

Where else do families keep their savings?

Retirement accounts are not the only place money sits. The same report shows that 98.7% of families held a transaction account, such as checking or savings, in 2025. Certificates of deposit (CDs) jumped from 6.5% of families to 10.7%. The Board says that likely reflects the better returns CDs paid in 2025 compared with 2022.

Direct stock ownership was less common. Only 19.0% of families held stocks outside retirement accounts. Most Americans get their stock exposure indirectly, through a 401(k) or an IRA.

That matters for midlife planning. If most of your market exposure sits inside one account type, a single rule change or a single bad year hits a large share of your savings. Cash and CDs are steadier, but they pay less over twenty years. Neither choice is wrong on its face. The right mix depends on how soon you need the money.

A practical way to think about it is in buckets. Keep emergency cash outside your retirement accounts. Keep money you will need within five years in lower-risk holdings. Leave the long-term bucket invested for growth. Many readers find that three-bucket sketch easier to follow than a percentage target.

What should you do with these numbers?

Use them as a rough compass, not a score. Three steps keep the comparison honest:

Reading the survey in a vacuum can also mislead. A saver who retires with a pension needs a smaller account than one who does not. The Fed counts pensions in participation, but not in the balances above. Keep that in mind when you compare.

Social Security also changes the math. Our explainer on the 2026 Social Security trustees report shows what the 2034 date means at 45. Your target savings number depends on how much of your income you expect that check to replace.

How can you catch up if you are behind?

If your balance is under the median, the tax code gives you room to catch up. The Internal Revenue Service (IRS) set the 2026 limit for 401(k), 403(b) and Thrift Savings Plan deferrals at $24,500. Workers 50 and older can add a catch-up of $8,000. Workers 60 through 63 can add $11,250 instead, and the IRA limit is $7,500 plus $1,100 for those 50 and over, as the IRS announcement of 2026 limits shows.

Few people max those out. You do not have to. Raising your deferral by one or two percentage points each year is a realistic plan, and many employers let you set an automatic step-up.

Think about timing, too. A dollar saved at 45 has twenty working years to grow. A dollar saved at 58 has seven. That is why we keep telling readers that most retirement mistakes are timing mistakes. Our piece on the 401(k) alternative assets proposal is worth reading before you reach for riskier funds to make up ground.

Caveats before you act

A survey is not a forecast. The 2025 round captures one moment, and market swings will move every figure. Families also differ on income, health, home equity and family support. The Federal Reserve's own Survey of Consumer Finances page links to the interactive chartbook if you want to look at income groups or other splits.

Self-reported data has limits as well. Families may round, forget an old account or leave out money held by a spouse. The Board adjusts and weights the sample, but small gaps between groups should be read with care. That is one more reason to treat the survey as context for your plan rather than as a target.

This is general information, not personal advice. Please talk to a qualified, regulated adviser before you make a big move. Reviewed by the Simply Forties editorial team on October 26, 2026.

Conclusion

The new Fed data gives midlife savers a clear message. Balances are growing, but the middle of the pack is much lower than the headline averages. Compare yourself with the median, count every account you own, and treat the catch-up limits as an opening.

Your next step is small. Total your accounts this week, write the number down, and pick one savings-rate change to make before year end.

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