How Much Money Americans Save Each Year (by Age, Income, and State)

Ever wonder how your savings compare to others your age or income level? You’re not alone. Many people are curious if they’re setting aside enough or falling behind. The truth is, how much Americans save each year depends on a mix of factors like age, earnings, and even where they live. 

In this article, you’ll get a snapshot of what savings really look like in 2025, along with clear takeaways that could help you plan your next financial move.

📌 Also Read: How to Build an Emergency Fund (Step-by-step Guide)

U.S. Savings Landscape in 2025

How much Americans are saving today is closely tied to current economic conditions. Here’s what the numbers are showing this year:

National Savings Rate & Economic Trends

The Bureau of Economic Analysis reports a 4.9 percent personal saving rate for April 2025. This figure reflects the portion of disposable income households typically set aside after taxes and spending. Year-to-date, the average saving rate is around 4.4 percent, slightly below the 4.6 percent average in 2024.

Source: U.S. Bureau of Economic Analysis

Key drivers in 2025 include:

Year-over-Year Growth and Pandemic Effects

Bankrate’s 2025 Emergency Savings Survey found that 30 percent of adults increased their savings over the past year, while 27 percent saw their balances shrink. About 13 percentstill report having no emergency savings at all.

Source: Bankrate’s 2025 Annual Emergency Savings Report

It’s a big shift from the early pandemic years, when stimulus payments and reduced spending pushed the saving rate to an all-time high of 33.8 percent in April 2020. Since then, those extra savings have mostly been spent, especially in lower-income households.

How Much Americans Save by Age Group

How much people save often depends on how old they are and what stage of life they’re in. Younger adults are just starting out, while older groups may be focused on retirement or spending down what they’ve built. 

Here’s a closer look at the typical savings by age group, based on the most recent data:

Age Group	Median Transaction Account Balance	Median Retirement Account Balance	Median Net Worth
Under 35	$5,400	$18,880	$39,000
35-44	$7,500	$45,000	$135,600
45-54	$8,700	$115,000	$247,200
55-64	$8,000	$185,000	$364,500
65-74	$13,400	$200,000	$409,900
75 and up	$10,000	$130,000	$335,600

Source: Board of Governors of the Federal Reserve System, as cited by Investopedia (2024)

✅ Under 35: Median savings are around $5,400. Many in this group are still early in their careers, often balancing lower incomes and debt as they work on building a basic emergency fund.

✅ Ages 35–54: Savings generally rise to about $7,500 to $8,700. While earnings tend to increase during these years, many still fall short of the commonly recommended cash reserve for emergencies.

✅ Ages 55–64: Median savings land near $8,000. This group may have more income and catch-up contribution opportunities, but costs like college tuition or healthcare often compete for attention.

✅ Ages 65 and Over: Savings tend to peak around $13,400 for ages 65–74, then dip to about $10,000 after age 75. Many retirees are spending down their cash but still keeping enough on hand for unexpected expenses.

Savings Disparities by Income Level

Many people assume income alone determines how much someone saves—but the picture is more nuanced. Federal Reserve data from 2024 shows just how wide the gap is when comparing savings habits across income levels:

Source: Federal Reserve Board Publication | Economic Well-Being of U.S. Households in 2024

✅ Lower-Income Households (< $50,000): Just 24 percent of those earning under $25,000 and 40 percent in the $25,000–$49,999 range say they could cover three months of expenses. About one-third also reported falling behind on at least one bill, which points to the financial strain many households in this group face.

✅ Middle-Income Households ($50,000–$99,999): Around 56 percent have set aside a three-month emergency fund. While the rate of missed bills drops to roughly 14 percent, many in this group still worry about affording a surprise $400 expense—showing that regular income doesn’t always mean peace of mind.

✅ High-Income Households ($100,000+): About 75 percent report having three months of living expenses saved, and just 7 percent say they’ve missed a bill. While higher income makes it easier to maintain a cushion, it doesn’t eliminate financial risks. These households still need to reassess goals regularly as markets and costs shift.

Geographic Variations: Savings by State

Where you live could make a big difference in how much you’re able to save. Factors like taxes, living costs, and even local savings rates all influence your ability to save.

In 2025, a study by Bankrate (summarized by FOX 9) ranked states based on how easy or hard it is for residents to build savings. The results show a clear pattern — some states make it easier to put money aside, while others leave less room in the budget.

Top States for Savings

Rank	State	Key Advantage	Cost-of-Living Index*
1	Tennessee	Low combined tax burden (7.6 percent) and affordable housing	90.5
2	Missouri	One of the lowest costs of living and steady job growth	88.7
3	Texas	No state income tax and below-average living costs	92.7
4	Oklahoma	The lowest cost-of-living index in the top five	85.7
5	Florida	No state income tax and competitive deposit rates	102.8

Source: World Population Review | Cost of Living Index by State 2025

*Cost-of-Living Index (COLI) values are relative to the national average = 100. 

📝 Note: Lower taxes and cheaper everyday expenses generally leave households in these states with meaningful dollars to redirect toward emergency funds, 401k contributions, or other savings goals.

Bottom States & Cost-of-Living Factors

Rank	State	Main Challenge	Cost-of-Living Index*
50	Hawaii	Extremely high housing costs and low local deposit rates	186.9
49	Connecticut	High utility bills and property taxes	112.3
48	Vermont	Higher costs for basic needs like heating and groceries	114.4
47	California	Elevated housing and transportation costs	144.8
46	New Jersey	One of the highest combined state and local tax burdens	114.6

Source: World Population Review | Cost of Living Index by State 2025

*Cost-of-Living Index (COLI) values are relative to the national average = 100. 

❌ Why saving feels harder in these states: When a large share of your income goes toward essentials like rent, food, and energy, there’s often less left to save even if wages are higher than average.

📝 Note: Bankrate’s rankings are based on three weighted factors: economic conditions (50 percent), tax burden (25 percent), and the local interest-rate environment for savings (25 percent).

Practical Strategies to Grow Your Savings

Saving doesn’t always mean making huge changes. Often, it’s the small, consistent steps that lead to steady progress. These approaches are simple enough to start right away and flexible enough to adjust as your income or goals shift.

Emergency Fund Benchmarks

A good emergency fund acts as a buffer when life doesn’t go as planned. Most financial experts suggest setting aside at least three to six months of essential expenses. If your income changes from month to month, or you’re expecting life changes (e.g., starting a business or having a child), consider saving closer to 12 months’ worth.

As of 2025, the median emergency fund balance among savers in the U.S. is about $10,000. Vanguard’s research also links strong emergency savings to lower financial stress.

Budgeting & Automated Saving Tools

The right tools could make it easier to stay consistent. Apps like Quicken Simplifi, YNAB, Monarch Money, and PocketGuard help you track your money in real time. Others, like Acorns or Digit, automatically move small amounts into savings, either on a schedule or by rounding up your purchases.

Choosing High-Yield Accounts & Other Vehicles

Where you store your savings matters, especially if you’re setting money aside for the short term. In June 2025, many online high-yield savings accounts are offering between 4.40 and 5.00 percent APY—well above the national average of 0.42 percent. You could also look into money market funds or short-term CDs, depending on your goals and risk tolerance.

Quick tips:

✅ Compare rates regularly—they may change over time
✅ Look for accounts with no monthly fees or high minimums
✅ If you have a larger balance, laddering CDs could give you more flexibility

Key Takeaways

Savings levels vary widely by age, income, and location. But reviewing the numbers and understanding how you compare can help you set more realistic goals.

In 2025, the typical savings levels reflect a mix of financial pressures, regional costs, and personal goals. Whether you’re just starting out or already saving steadily, the key is to stay consistent and use smart tools that can help you make lasting progress.

You may want to revisit your emergency fund targets, explore higher-yield accounts, or adjust your budget to free up extra funds for future goals. Everyone’s situation is different, but small steps taken today can create meaningful financial security over time.

📌 Want to learn more? Explore our other articles on saving, retirement, and financial planning:

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