Here’s How Much the Average Retiree Has in Savings — And Where They Keep It

Core Insights - The average retiree does not possess a million-dollar nest egg, with only 17% having total household savings of $1 million or more, excluding home equity [1][2] Retirement Savings Overview - The estimated median total household savings for retirees, excluding home equity, is $126,000 [2] - 12% of retirees have no savings, 25% have saved between $1 and less than $100,000, 18% have saved between $100,000 and less than $500,000, 12% have saved between $500,000 and less than $1 million, and 17% have $1 million or more [2] Financial Stability and Challenges - Many retirees are managing their finances well by adjusting expenses and cash flow, allowing them to get by [3] - However, household savings may not be sufficient to withstand financial shocks such as major home repairs or health incidents requiring long-term care [3][4] Emergency Fund Insights - The median emergency fund balance among retirees is $13,000, which may be inadequate for unexpected expenses [4] - Liquidity is crucial for retirees, as having cash on hand is necessary to cover emergencies [5] Investment and Savings Locations - Retirees primarily store their savings in bank accounts (78%), followed by primary residences (54%), IRAs (41%), brokerage accounts (38%), life insurance policies (37%), and retirement plans like 401(k)s (27%) [6]