Q:

How much money does the average person save?

A:

Quick Answer

According to Zacks Investment Research, the average U.S. savings account contains $5,923. This includes individual and joint savings accounts but not those managed by large groups or organizations. Therefore, it can be surmised that the average person has just short of $6,000 saved that they can access easily.

Continue Reading
How much money does the average person save?
Credit: American Advisors Group CC-BY-2.0

Full Answer

In addition to money in savings accounts, many individuals also have retirement savings. The amount of money in a retirement savings account varies significantly by age. According to Forbes, men between the ages of 25 and 54 have an average of $220,000 in their retirement savings accounts, while women have an average of $219,000.

Learn more about Financial Planning

Related Questions

  • Q:

    What monthly income is required for a comfortable life during retirement?

    A:

    Retirement savings formulas are based on the amount of money saved as a multiple of current income, according to Time. Different financial services firms use different multiples of final annual income for retirement savings. The general ballpark for comfortable retirement savings is eight to 18 times final annual income.

    Full Answer >
    Filed Under:
  • Q:

    How does a 529 plan work?

    A:

    According to Savingforcollege.com, a 529 plan is a type of savings plan intended to help families save money for the cost of a higher education. The plan was named after Section 529 of the Internal Revenue Code and is operated by educational and state institutions.

    Full Answer >
    Filed Under:
  • Q:

    What is a traditional IRA?

    A:

    A traditional IRA, or Individual Retirement Account, is a designated monetary account that workers can pay into in order to have savings for their retirement. Traditional IRAs are held by banks or other financial institutions.

    Full Answer >
    Filed Under:
  • Q:

    How does an IRA work?

    A:

    An individual retirement account works by providing retirement savers certain tax benefits in exchange for limits on how and when they can use their savings. These benefits can include an immediate tax deduction as well as the opportunity for tax deferral.

    Full Answer >
    Filed Under:

Explore