Clark Howard

What’s the Average Retirement Account Balance in America?

If you make the right money moves during your working years, retirement can largely be spent in enjoyment rather than worrying about finances.

If you're currently employed, money expert Clark Howard says supplementing your employer-sponsored 401(k) with other retirement accounts, such as an HSA, Roth IRA or traditional IRA is the key to living comfortably in retirement.

What Retirement Account Do Americans Favor?

You might be curious to know how other Americans stack up when it comes to the type of retirement accounts they choose and their average balances.

According to Fidelity's 2022 fourth-quarter analysis, which only looks at data from the brokerage firm, more Americans are opening individual retirement accounts (IRAs):

  • 13.6 million people had Fidelity IRA accounts as of the fourth quarter of 2022, which represents a 10.2% increase over the same period last year.
  • Total 401(k) savings remained largely unchanged at 13.7% (compared to 13.8% in the third quarter of 2022 and 13.9% in the second quarter of 2022).
  • Roths are the "retirement savings vehicle of choice," accounting for 61.3% of all retirement contributions.

Like many people, Clark is a big fan of Roth IRAs. "I have been the man from Roth forever," he says. "I'm obsessed with the Roth as a way to save for retirement." But how much money are Americans stashing away in Roths and other retirement accounts?

Average Retirement Account Balances

Let’s take a look at the average retirement account balances for popular retirement accounts such as an IRA, 401(k) and more, according to Fidelity.

Retirement AccountQ4 2022Q3 2022Q4 2021Q4 2012

According to Fidelity’s data, the average IRA balance jumped 2% compared to the previous quarter and 36% vs. 10 years ago.

Fidelity’s analysis also shows that people have made strides in “retirement readiness over the last decade. “Since 2013, the average savings rate has increased to 11.4%, an improvement of 3.3%,” the report brings out.

How To Grow Your Retirement Account Savings

If you are looking for the best way to save for retirement, follow our guide to saving and investing the Clark Howard way. It's a straightforward list designed to help you take simple, practical steps to achieve financial freedom. Already saving? We also have a guide on how to use your IRA to become a millionaire.

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