NEW YORK–A new study shows very wide disparities in the amount of money and assets American households have saved.
According to MagnifyMoney's latest research study on American finances, which is based on Federal Reserve and FDIC data, a number of “surprising statistics,” were uncovered, according to the company.
Among the highlights of the report:
- 29% of households have less than $1,000 in savings
- Only 51% of American households have a savings account; with an average savings amount of $32,130
- 83% of American households have a checking account; with an average account balance of $11,260
- Only about 7% of households currently have savings in some type of CD account; with an average account balance of $79,420
- The top 1% of households (as measured by income) have an average of $2,495,930 in these various saving accounts. The bottom 20% have an average of $8,720
- The average American household has $175,510 worth of savings in bank accounts and retirement savings accounts as of June 2018. “Of American households that actively save, the average savings account value is (perhaps predictably) correlated to household income and therefore heavily slanted to the wealthy,” Magnify Money said. “Saving households in the top 1% income bracket have an average savings value of $2,529,770. Households in the top 10% by income have an average savings amount of $989,430.”
- Roughly 83% of savings are in located in retirement accounts like IRAs and workplace-sponsored retirement savings plans like 401(k)s
- Millennials, who have just started their savings journey, have currently socked away an average of $24,820. Gen Xers have $125,560 in retirement savings. Baby boomers and those born before 1946 have an average of $274,910.
The full report can be found here.