14 Must-Know Retirement Stats For 2025

Retirement planning can often feel like piecing together a puzzle without the picture on the box. In 2025, it may feel even harder to keep up. 

With rising costs, changing benefit rules, and shifting savings trends, it’s natural to ask: Am I on the right track? 

We’ve compiled 14 key retirement statistics that can help you answer that. From how much people are saving to when they plan to retire, each section gives a quick snapshot of what’s typical this year. Whether you’re just getting started or reviewing your current plan, these numbers may help you see where you stand—and what to focus on next.

📌 Also Read: The 5-Year Rule Of A Roth IRA, Roth 401k, And Roth Solo 401k

#1 – Retirement Savings by Generation

Retirement account balances vary widely by age group. According to Fidelity, the average 401k balance in 2025 is:

Median retirement savings is much lower at $87,000, revealing a sizable gap between typical savers and those with higher balances. These figures may help you gauge where your nest egg stands relative to peers and spot potential catch-up needs.

#2 – 2025 Social Security Updates

Several key Social Security changes took effect in 2025:

Source: Fidelity | How do your retirement savings stack up?

Note: As of December 31, 2024, Fidelity’s Q4 401(k) data reflects insights from 26,700 corporate defined contribution plans and 24.5 million participants. The dataset includes plans sold through advisors but does not cover the tax-exempt market. Behavioral data excludes Fidelity’s own employee plans and any nonqualified defined contribution plans.

These updates could affect when you choose to claim benefits and how much you receive, so it’s generally worth reviewing your claiming strategy today.

#3 – Americans with $1 M+ Saved

Not many households reach seven-figure retirement balances. A 2022 Congressional Research Service report finds that among U.S. households with defined contribution plans or IRAs in 2022:

These distribution figures illustrate how uncommon it is to surpass $1 million in retirement accounts, highlighting the importance of regular contributions and potential catch-up opportunities for those age 50 or older.

#4 – Retirement Healthcare Costs

Health-care spending can be one of the largest retirement expenses. Estimates from the Employee Benefit Research Institute show that a retiring couple may need up to $428,000 to have a 90 percent chance of covering medical costs in retirement. 

For an individual (enrolled in Medigap) aged 65 in 2025:

These estimates account for premiums, out-of-pocket expenses and prescription drugs (including the Medicare Part D out-of-pocket cap of $2,000 in 2025). Planning ahead for these potential costs may help avoid unexpected shortfalls.

#5 – Longevity & Life Expectancy

Most people calculate required minimum distributions (RMDs) using the 27.4-year factor at age 72 from the IRS Uniform Lifetime Table. Thanks to SECURE 2.0, your first RMD now falls in the year you turn 73, so plan for a slightly longer payout window today. 

Social Security’s 2021 period life table shows a 65-year-old man may live another 17 years and a 65-year-old woman about 20 years.

Key points:

✅ Map essential expenses for at least twenty-five years.
✅ Reevaluate withdrawal rates if health or market conditions change.

📝 Note: These are averages. Personal health factors may affect your timeline.

#6 – Your Retirement Income Mix

In tax year 2022, taxable pensions and annuities made up about 6.3 percent of total adjusted gross income (AGI), while taxable IRA distributions were roughly 2.6 percent. Up to 85 percent of Social Security earnings may be taxable once “combined income” exceeds $34,000 (single) or $44,000 (married filing jointly).

Key takeaways:

✅ Maintain a mix of taxable, tax-deferred, and Roth accounts to manage future brackets.
✅ Keep in mind: RMDs may push your ordinary income higher after age 73.

📝 Note: Coordinating withdrawal order with a professional could reduce surprise taxes.

#7 – Retirement Confidence Rates

The 2025 EBRI/Greenwald Retirement Confidence Survey reports that 67 percent of workers and 78 percent of retirees feel at least somewhat confident in their ability to fund a comfortable retirement. 

While this level has held steady for workers, confidence among retirees has risen by four percentage points compared to 2024. Despite this optimism, many still express concern about inflation and potential changes to Social Security, which continue to be leading sources of uncertainty. 

The data also shows that confidence tends to be higher among individuals who are automatically enrolled in a retirement plan or who have access to professional financial guidance. However, it’s important to recognize that confidence doesn’t always equal actual preparedness. These statistics can serve as a useful reminder to assess your retirement readiness more closely.

#8 – Actual vs. Ideal Retirement Age

Workers today generally expect to retire at a median age of 66, yet Gallup polling shows the actual median retirement age still hovers near 62.

Source: Americans’ Outlook for Their Retirement Has Worsened | 2023

Some important points to remember about:

📝 Important: Delaying Social Security beyond full retirement age typically raises monthly benefits. But your health, job satisfaction, and income needs may sway the choice.

#9 – Top Retirement Worries

It’s natural to have a few fears as you plan for retirement. Today, these are the most common concerns:

These worries highlight the need to stress-test your plan against unexpected expenses or benefit shifts.

#10 – 401k & Plan Contribution Trends

The IRS has increased the contribution limits for 401k plans in 2025, giving savers more room to set aside for retirement. Here’s a quick overview of the latest limits, including special catch-up opportunities for older workers.

✅ Employee elective deferral limit is $23,500
✅ Catch-up contributions stay at $7,500 for age 50-plus
✅ Enhanced SECURE 2.0 catch-up of $11,250 for ages 60–63
✅ Total 401k cap (employee + employer) is $70,000 ($77,500 if you’re age 50 plus)

According to Vanguard, auto-enrollment is in place at 61 percent of plans, with default deferral rates often set at 4 percent or higher. Today, 67 percent of participants opt for professionally managed allocations.

#11 – Key 2025 Tax & Regulatory Changes

These adjustments from the IRS could affect which vehicles you prioritize and how much ordinary income you dedicate to retirement:

#12 – Savings Gaps: Gender, Race & Region

Even with similar limits, balances can vary widely today:

Source: Closing the gender gap in IRA balances | Vanguard

Source: A booming U.S. stock market doesn’t benefit all racial and ethnic groups equally | Pew Research Center

Spotting these disparities may help you benchmark your own savings goals and decide where you could benefit from targeted guidance.

#13 – Auto-Enrollment & Engagement Impact

Starting January 1, 2025, most newly established 401k and 403b plans must include automatic enrollment. Under SECURE 2.0, employees will be automatically enrolled in the plan at a default deferral rate. This applies to plan years beginning after December 31, 2024. To avoid enrollment, employees must take action to opt out.

The IRS explains that automatic enrollment allows elective deferrals to start without requiring additional action from employees. This approach simplifies participation but still gives workers the option to opt out if they choose.

Moreover, a research published by the National Bureau of Economic Research (NBER) shows that automatic enrollment can raise 401k participation rates by 50 to 67 percentage points. The most notable gains are seen among younger and lower-income workers, who are typically less likely to enroll on their own.

Key points about auto-enrollment:

✅ Higher overall participation
✅ Broader access for underserved groups
❌ Some savers may stay at low default rates unless employers add auto-escalation or extra education

#14 – Cost-Adjusted Savings Adequacy

The latest Survey of Consumer Finances reports that the median retirement account balance for individuals ages 55 to 64 is around $185,000. 

Median and mean retirement savings by age

Age	Median Savings	Mean Savings
Less than 35	$18,800	$49,130
35-44	$45,000	$141,520
45-54	$115,000	$313,220
55-64	$185,000	$537,560
65-74	$200,000	$609,230
75 and over	$130,000	$462,410

Table Source: Federal Reserve: Survey of Consumer Finances, 2023, as cited by Kiplinger

However, this figure reflects a national average and may not suit everyone’s situation. If you live in a higher-cost area, you may need to save more. One practical way to adjust your target is by comparing your local Consumer Price Index (CPI) to the U.S. city-average CPI published by the Bureau of Labor Statistics.

✏️ Hypothetical Example: If the CPI where you plan to retire runs 20 percent above the national figure, a $185,000 goal becomes roughly $222,000.

So when reviewing adequacy, consider:

✅ Regional CPI differences
✅ Local housing & tax costs
✅ Area-specific health-care expenses

This comparison may help clarify whether current savings are likely to keep pace with the cost of living in your chosen location.

Key Takeaways

Retirement looks different for everyone, but these 14 stats offer helpful benchmarks for 2025.

✅ Use them to evaluate where you stand

✅ Adjust your contributions or account mix if needed

✅ Explore new features like auto-enrollment and Roth options

✅ When in doubt, work with a professional advisor to tailor your strategy

📌 Want to keep learning? Take a look at the other articles in our blog for more retirement insights:

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