The typical U.S. household has a median retirement savings of just $200,000 by age 65, falling significantly short of recommended savings guidelines. Investment management firm T. Rowe Price suggests that individuals should have between 7.5 to 13.5 times their salary saved by retirement age. With the median household income around $80,000, a typical household should ideally have between $600,000 and $1.1 million invested at retirement, rather than the current average.
Social Security, which currently provides an average monthly benefit of approximately $2,000, is projected to face insolvency within a decade due to an aging population. As a result, financial experts stress the importance of personal retirement planning beyond relying on Social Security benefits.
