Comparing your financial progress to a national average isn’t about keeping up with the neighbors. It is about understanding the landscape of American stability.
Whether you are looking at the cash in your checking account or the long-term growth of a 401(k), the numbers tell a story of significant disparity. While some households have successfully padded their reserves against inflation, a large portion of the country still lives with very little cushion.
Here is a look at the typical balances for various accounts.
1. Bank accounts
Average balance: $62,410
Median balance: $8,000
According to Bankrate, the typical American household holds about $8,000 in transaction accounts, which includes savings, checking and money market funds. This figure represents the median, which is often a more realistic benchmark than the average.
The average balance is much higher because it’s skewed by the fact that a small percentage of high-wealth households hold vast amounts of cash.
2. Retirement accounts for older workers
Ages 45-54 median balance: $67,796
Ages 55-64 median balance: $95,642
Retirement savings are a critical measure of long-term financial health, and the disparity between the “average” and the “median” is stark in these age groups. For workers aged 45 to 54, the average balance is $188,643, but the median is much lower at $67,796.
The numbers jump significantly as retirement approaches. For those aged 55 to 64, the average climbs to $271,320, while the typical worker (median) holds roughly $95,642. This gap suggests that while many are saving, a significant portion of the workforce may need to play catch-up in their final working years.
3. Health savings accounts
Average balance: $3,997
Average for investors: Over $18,000
Health Savings Accounts (HSAs) have become a popular tool for both medical costs and tax-advantaged investing. According to the latest industry reports, the average balance across all accounts is $3,997.
Interestingly, many people use these accounts as pass-through vehicles — they deposit money and spend it immediately on doctors. Only about 10% of account holders actually invest their HSA funds, but those who do have significantly higher balances, often exceeding $18,000.
4. Checking accounts
Average checking balance: $16,891
Median checking balance: $2,800
Checking accounts are meant for liquidity, but the amounts kept here are often lower than recommended. While the average is skewed high by wealthy households, the median balance for a typical American is $2,800.
Low balances in these accounts increase the risk of overdraft fees. While checking accounts do not need to be overflowing, keeping enough to cover a full month of expenses provides a necessary safety buffer.
5. Emergency funds
Population with three months of savings: 55%
Population with no savings: 19%
The gold standard for financial safety is a fund that covers at least three to six months of living expenses. Recently, roughly 55% of adults reported having enough set aside to cover at least three months.
The remaining 45% are in a more precarious position. About 19% of U.S. adults have no emergency savings at all, meaning any car repair or medical bill likely must be put on a credit card.