It's important to distinguish between average and median savings. The average can be skewed by a small number of very high savers, while the median gives a better sense of what the typical person has saved.  

Here's what the data suggests for the United States:

• Average Retirement Savings for Ages 35-44: According to recent data, the average retirement savings for individuals between 35 and 44 years old ranges from $76,354 to $141,520. Older data from 2019-2020 even suggests an average of around $101,899 for those aged 40-44. More recent data from Empower indicates a higher average retirement savings balance of $530,031 for those in their 40s.  

   

   

• Median Retirement Savings for Ages 35-44: The median retirement savings for the same age group is significantly lower, ranging from $28,318 to $45,000. Some sources indicate a median balance of $60,000 specifically for those aged 35-44 who have a retirement account. Empower's data shows a median retirement savings balance of $217,005 for those in their 40s.

• General Savings (including non-retirement accounts) for Ages 35-44:

  • The average transaction account balance (checking and savings) for this age group is around $41,540.
  • The median transaction account balance is significantly lower, around $7,500. 
     

Key Takeaways:

• Averages vs. Medians: The significant difference between the average and median highlights that a large portion of 40-year-olds have savings below the average.
• Retirement vs. General Savings: Retirement savings are often tracked separately and tend to be higher for those who are actively contributing to retirement accounts.
• Rule of Thumb for Retirement: Some financial experts suggest aiming to have saved three times your annual salary by age 40 for retirement. For example, if you earn $75,000 per year, the target would be $225,000.
   

   

Important Considerations:

• These figures are for the United States. Savings rates and amounts can vary significantly by country due to different economic conditions, social security systems, and cultural norms.
• Individual circumstances vary greatly. Factors such as income, debt, cost of living, career trajectory, and family responsibilities will significantly impact individual savings.
• Having something saved is better than nothing. If your savings fall below these averages or medians, it's not too late to start or increase your savings rate.

In conclusion, while the average retirement savings for a 40-year-old in the US can be in the range of $76,000 to $530,000, the median is much lower, likely between $28,000 and $217,000. General savings (including non-retirement accounts) tend to be lower still for the median 40-year-old. It's essential to consider your individual circumstances and financial goals rather than solely relying on these averages.