Midlife Savings: Comparing Average American Savings at Age 55-64 and Beyond

According to the Federal Reserve's Survey of Consumer Finances, Americans aged 55-64 have a median bank account balance of $8,000. This is higher than their younger counterparts but lower than those aged 65-74. Financial experts emphasize the importance of continued investing for long-term growth, even in retirement, and suggest adding even a few hundred dollars a month to a retirement account to significantly grow one's nest egg.

According to the Federal Reserve's Survey of Consumer Finances, Americans aged 55-64 have a median bank account balance of $8,000. This figure is higher than their younger counterparts but lower than those aged 65-74. Financial experts emphasize the importance of continued investing for long-term growth, even in retirement, and suggest adding even a few hundred dollars a month to a retirement account to significantly grow one's nest egg.

The Federal Reserve's survey reveals that individuals in the 55-64 age bracket have more financial flexibility, with fewer obligations such as paying for college tuition or raising children. This age group also tends to have more money saved or invested in other types of accounts and assets, with over half owning retirement accounts. Median balances in retirement accounts for this age group are $185,000, indicating a significant portion of their wealth is allocated to long-term savings [2].

Financial experts recommend that individuals in their 50s and 60s continue to save and invest for retirement. While there is no perfect amount to save, strategies such as contributing to retirement accounts and taking advantage of tax-advantaged accounts like 401(k)s and IRAs can help maximize savings. Additionally, understanding Social Security benefits and using them strategically can provide an extra layer of financial security [2].

For those approaching retirement, it's crucial to diversify their investment portfolio. While traditional retirement accounts and bonds are essential, exploring alternative investments such as REITs and InvITs can provide additional returns. For instance, Alt, a leading platform for alternative investments, has launched India's first PMS (Portfolio Management Service) exclusively focused on REITs and InvITs, bringing institutional-grade real estate investing to retail investors [1].

The Alt REIT/InvIT PMS Strategy (ARIPS) offers a curated approach to investing in units of listed real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) in India. With a minimum investment threshold of ₹50 lakh, the PMS provides transparency, liquidity, and high corporate governance standards, making it an attractive option for sophisticated investors [1].

In conclusion, Americans aged 55-64 should continue to prioritize long-term savings and consider diversifying their investment portfolios. By taking advantage of retirement accounts and exploring alternative investments, they can better prepare for a comfortable and secure retirement.

References:
[1] https://economictimes.indiatimes.com/wealth/invest/alt-launches-indias-1st-pms-investing-exclusively-in-reits-and-invits/articleshow/123511162.cms
[2] https://www.investopedia.com/how-your-savings-compare-to-the-average-american-at-age-55-64-11795311