Overview
- Federal Reserve data show the median household in its 40s holds about $37,700 in financial assets and nearly 40% of people that age have no retirement savings.
- Among 40–49 households, about 61% have retirement accounts with a median balance of $73,000 but the across-all-households median falls to $13,000 because many have nothing saved.
- Fidelity’s 2026 study finds 31% of Americans cannot estimate their eventual retirement balance and that people with a clear plan are far more likely to feel their savings will last.
- Macro trends are squeezing savings: the U.S. personal savings rate has dropped to roughly 3.7% from about 6.2% in early 2024, and plan balances are being eroded by more 401(k) loans and hardship withdrawals.
- Policymaker and industry fixes such as SECURE 2.0 catch-up rules, broader plan access and advisor-led catch-up strategies can help some households but are unlikely to close the widespread shortfall on their own.