You might not be as far off from the average as you might think.
It's normal to want to know how you stack up financially against others, especially when it comes to retirement savings. There are so many variables in retirement planning that it's hard to know what target you should be aiming for, and it can be comforting to know you're not drastically behind others.
However, knowing where you stand relative to the typical saver may not tell you everything you need to know. Here's a closer look at how much the average retirement saver has and what that does and doesn't say about where you stand.The median retirement savings balance is $87,000The median retirement savings balance is $87,000
The median retirement savings balance as of 2022 was $87,000, according to the Federal Reserve. The average was notably higher at $333,940, but the median is usually a better indicator of where the typical saver is at. Averages are easily skewed by a few high earners.
...read more at eu.usatoday.com
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It's a very interesting number. That's not anywhere near enough to retire on, and I get that it includes young people, but somehow society will have to conform to that reality.
If I were religious, all I could do is pray that Social Security is still a thing by the time I retire! We'll see, though. Time will tell!
You can see the moral hazard: expecting state provided pensions, people are neglecting to do it themselves.
That's not me, but here in Portugal, most people can't save for shit.
I don't think that's a Portugal-specific problem.
I think part of the confusion is that people equate retirement liquidity with retirement savings in total. They are two very different things. I can be retirement rich with a house that has appreciated $100Ks but still be cash poor month to month having no actual cash liquidity to buy things or pay bills (until I sell the house). This how seniors oftentimes get caught in reverse mortgage traps. They sell off their best asset for ready cash flow. It works fine until they realize they live too long and the debt comes calling for payment (i.e. liquidation of the house).