Podcast Summary: The Average Retirement Savings By AGE! (2025 Edition)
Podcast: The Personal Finance Podcast
Host: Andrew Giancola
Date: November 5, 2025
Overview
In this episode, Andrew Giancola breaks down the average retirement savings by age for 2025 using newly released data from Fidelity. He goes decade by decade—from your 20s through your 50s—examining average balances, common hurdles, and practical strategies to help listeners increase their retirement savings and secure financial independence. Andrew provides specific advice for overcoming the unique financial challenges each age group faces, sprinkled with motivational encouragement and actionable tips.
Key Discussion Points & Insights
Introduction to Retirement Savings by Age
- Fidelity Data: Andrew uses Fidelity’s data on millions of 401(k) and retirement accounts.
- Purpose: Not just to compare, but to give actionable, decade-centric advice for boosting savings and overcoming common blocks to wealth building.
- Tone: Motivational and direct, emphasizing that anyone can improve their retirement situation with the right approach.
1. Retirement Savings in Your 20s (starts at 03:40)
Average Balances:
- Ages 20–24: $7,300
- Ages 25–29: $24,000
Common Challenges
- Low starting salaries: “When I left college I had an entry level job… making $30,000 every single year. I realized very quickly it is very difficult to have enough cash on hand to also save for retirement.” (05:00)
- Student loans: “Every single year it seems like the rules are changing… it becomes very difficult to plan.” (06:36)
- Lacking financial habits: “When I first graduated college… I didn’t have those financial habits place yet. You have to kind of learn as you go.” (07:30)
- Job-hopping and career uncertainty
- Peer and lifestyle pressure
- High cost of living
Actionable Strategies
- Start, even small: “Every dollar [in your mid-20s] you invest is going to be worth $70 by the time they retire at age 65.” (10:21)
- Employer match: “At the bare minimum… always want to make sure that you get that employer’s match because it is going to be free money.” (14:30)
- Automate contributions: “What you do not want to do is have to rely on your willpower… Instead, I want you to send it automatically so you don’t even have to think about it.” (13:00)
- Reduce high-interest debt: Prioritize any over 6%.
- Budget and curb lifestyle inflation
- Educate yourself: “Spend time every single week, at least an hour every single week, educating yourselves on different things that you need to grow on.” (18:57)
- Set financial goals with 12-week increments
Notable Quote:
“I have never heard anybody in their 20s say, man, I really wish I did not save that extra money towards my retirement.” – Andrew Giancola (12:14)
2. Retirement Savings in Your 30s (starts at 29:00)
Average Balances:
- Ages 30–34: $49,000
- Ages 35–39: $85,000
Benchmarks
- Age 35: 2x your annual salary
- Age 40: 3x your annual salary
Common Challenges
- Life transitions: marriage, having children, buying homes.
- More complex finances: juggling home, kids’ expenses, retirement savings.
- Peak earning trajectories begin, but so do expenses (childcare, etc.).
- Debt and savings “tug-of-war”
Actionable Strategies
- Raise contribution rates with income increases: “Every single time you get a raise… increase that contribution rate every single year.” (36:32)
- Minimum target: 20% of your income (combined emergency fund/investments).
- Avoid lifestyle creep: “You worked hard. You deserve to spend a portion of that raise… but you also need to make sure that you are saving a portion of that raise for your financial future.” (42:40)
- 50/50 Rule: Save 50%, enjoy 50% of all raises.
- Maximize employer match and other retirement accounts
- Optimize taxes: “Find a CPA… who is also a tax strategist.” (45:00)
- Emergency fund: “Six months is our minimum… always, always, always.” (46:15)
Notable Quote:
“This is the messy middle. This is the timeframe where life gets chaotic, it gets hectic. ...Unless you have a financial plan in place… the last thing you need to focus on is everyday financial decisions.” – Andrew Giancola (33:10)
3. Retirement Savings in Your 40s (starts at 56:15)
Average Balances:
- Ages 40–44: $115,000
- Ages 45–49: $185,000
Benchmarks
- Age 40: 3x annual salary
- Age 50: 6x annual salary
Common Challenges
- Expensive decade: peak expenses – kids’ extracurriculars, college, mortgages, elder care.
- Retirement feels urgent—guilt and anxiety about being behind.
- Potential career pivots or plateaus.
- Juggling kids, parents, and rising lifestyle costs.
- Healthcare inflation: “The inflation rate for health care has been 7% per year.” (01:06:00)
Actionable Strategies
- Max out retirement accounts.
- Utilize catch-up mindset: “If you’re in your early 40s… this is the lightbulb moment. It is time right now to get my financial act together.” (01:08:25)
- Invest in taxable brokerage or real estate for early retirement or surplus savings.
- Preserve correct asset allocation as you age.
- Prioritize your own retirement over kids’ college savings: “There are no loans in retirement… your retirement always needs to come first. Always, always, always. It’s the oxygen mask method.” (01:13:03)
- Regularly run your retirement numbers: “How much do you spend every single year? Multiply that number by 25… that’s your retirement number.” (01:15:20)
Notable Quote:
“It is never too late to start saving for retirement. So don’t get me wrong here, but time is starting to tick away slowly. We need to get the ball rolling. Let’s light a fire and let’s keep it moving.” – Andrew Giancola (01:09:25)
4. Retirement Savings in Your 50s (Starts at 01:17:53)
Average Balances:
- Ages 50–54: $208,000
- Ages 55–59: $270,000
Benchmarks
- Age 50: 6x annual salary
- Age 60: 8x annual salary
Notable Features
- Catch-up contributions: 401(k) and Roth IRA “get a boost” (401k up to $30,500 including the $7,500 catch-up in 2025; Roth IRA contribution limits also increase).
- This is the “power decade.” There’s urgency and opportunity but little time left.
Common Challenges
- Real retirement is now near.
- Healthcare costs and insurance are a major factor.
- “Sandwich” pressures: kids’ college plus aging parents.
- Potential job burnout, insecurity, difficulty saving as fixed costs mount.
Actionable Strategies
- Max out contributions (plus catch-up).
- Aggressively eliminate debt—especially before retirement.
- Diversify income streams: Taxable accounts, HSAs, side hustles.
- Shift asset allocation from “accumulation” to “preservation” phase: Move gradually to a more conservative mix (more bonds/cash), plan for drawdowns.
- Plan Social Security/pension strategies: “If you go to SSA.gov, you can find out… how much is anticipated for Social Security.” (01:26:40)
- Run a detailed plan: Know your “retirement gap” (the portion of expenses not covered by guaranteed income).
- Protect your downside: Proper insurance, emergency fund in place.
Notable Quotes:
“When you hit retirement, you are now in the preservation phase… To do that, we need to make sure we think through our asset allocation.” (01:23:40)
“There are retirees out there who do not add bonds. …But it has to fit your risk tolerance and you have to have enough on hand to make sure that it will cover the cost in a down market.” (01:25:02)
Memorable Moments
- On Regret: “I have never heard anybody in their 20s say, man, I really wish I did not save that extra money towards my retirement.” (12:14)
- On Comparison: “Most people around you are making poor financial decisions… don’t base your decisions on what they’re doing.” (16:30)
- On Priorities: “Do not ever save for your kids’ college before you save for your own retirement. That is not the way to do this.” (01:13:23)
- On Urgency in Your 50s: “You need to have your plan in place—the last five years. That plan needs to be locked in.” (01:18:39)
Timestamps for Major Segments
- 03:40 – Retirement Savings in Your 20s
- 29:00 – Retirement Savings in Your 30s
- 56:15 – Retirement Savings in Your 40s
- 01:17:53 – Retirement Savings in Your 50s
- 01:26:40 – Planning for Social Security and Running The Numbers
Conclusion
Andrew’s episode provides a clear, structured look at how average retirement savings stack up by age, but more importantly, offers concrete advice for improving your situation regardless of where you’re starting. The recurring message: start now, increase steadily, automate, plan for life’s transitions, protect your downside, and always prioritize your retirement over other financial goals like college savings for children. The tone is relentlessly encouraging, practical, and deeply geared towards helping listeners achieve true financial freedom.
If you’re looking for decade-specific personal finance advice or want to benchmark your retirement journey, this episode delivers.