I have been on a rampage about average vs median income. Here’s a report about average vs median savings.
Magnify Money asks How Much Does the Average American Have in Savings?
The question is irrelevant. The story is how unprepared the median person is prepared for retirement. On that score, the article does explain.
Stats
Point number 2 is the most relevant point. 50% of household have less than $11,700 in savings.
Averages Lie
What’s wrong with averages? The Skew!
Average and Median Savings by Income Level
The top 1% of income earners have an average savings of $2.53 million and a median savings of $1.16 million.
That average affects people with no savings.
The median savings for 40% of households is zero. The “average” varies by income group but it is much higher.
The “middle” (40-60% of wage earners) median savings is $34,020 but the average is $65,830.
Age Level
This is where the stats get truly depressing.
The average “boomer” headed into or in retirement has $274,910 in savings.
What’s wrong with that?
Well, 50% of boomers have less than $24,280 saved up.
