Bridging a Retirement Savings Gap
Many Americans face a retirement savings gap, with the median account balance significantly below average and nearly half of those nearing retirement unprepared. Modest strategies like working longer and delaying Social Security can help bridge this shortfall.
Published on March 28, 2025
Many Americans are facing a serious shortfall in retirement savings. In 2023, the average balance in Vanguard retirement plans was about $134,000, while the median balance was only $35,000. For those aged 55-64, averages are higher—around $245,000 with a median of $88,000—but nearly half of Americans in the 55-66 age group have nothing saved. Women are particularly affected by this savings gap.
Experts suggest that modest changes can make a significant difference in retirement readiness. Strategies include working longer, delaying Social Security benefits to boost payouts, increasing savings before retirement, reducing investment costs, and adopting flexible withdrawal strategies. As noted in articles from CBS News (December 15, 2024) and Kiplinger (March 23, 2025), even small adjustments, like a few extra months of work or smarter account diversification, can add up to meaningful improvements without the need for drastic lifestyle changes.