Fidelity Investments ($FNF) revealed the average savings for 55-64 year olds has reached $189,000 in 2025—failing to meet most retirement recommendations. This average savings figure for 55-64 year olds signals a growing disparity and raises urgent questions about retirement security in the U.S.
2025 Data Shows Retirement Savings Gap Widens Among Near-Retirees
New data from Fidelity Investments ($FNF) and Vanguard indicates that the average 401(k) balance for Americans aged 55-64 stood at $189,000 as of Q3 2025, down from $198,000 a year earlier. Meanwhile, the median savings—a more accurate gauge due to outliers—was just $71,168, according to the Employee Benefit Research Institute (EBRI, June 2025). In contrast, most experts recommend at least $500,000 to $1 million in savings for comfortable retirement. The decrease reflects ongoing market volatility and inflationary pressures hitting retirement accounts hard this year. (Sources: Fidelity Q3 2025, EBRI Retirement Confidence Survey 2025)
How Limited Retirement Savings Impact Broader Financial Markets
Lagging retirement balances among those aged 55-64 have reverberated across the financial sector. According to the Investment Company Institute (ICI) data from September 2025, net flows into target-date funds designed for pre-retirees slowed by 6.2% year-over-year, indicating growing investor caution. Rising inflation—still trending above 3.6% per Bureau of Labor Statistics (BLS) August 2025 data—continues to challenge the purchasing power of fixed-income assets. Financial advisors warn this shortfall could spur higher demand for annuities and lifetime income products, potentially shifting asset flows within retirement and financial news sectors.
Strategies for Investors Facing Retirement Savings Shortfalls
Investors in the 55-64 age group should consider realigning their portfolios to address rising longevity and market uncertainty. Allocating more to inflation-protected assets, such as Treasury Inflation-Protected Securities (TIPS), and balancing growth with income sources like dividend stocks (e.g., The Procter & Gamble Company ($PG)), has become increasingly common. Those with limited 401(k) or IRA balances may wish to delay Social Security benefits, maximizing lifetime payouts. For more guidance, review our stock market analysis and investment strategy resources for near-retirees. It’s critical to reassess withdrawal rates and revisit spending assumptions as market and policy conditions evolve.
What Analysts Expect for Retirement Readiness in 2026
Industry analysts observe that most asset managers are encouraging late-career workers to boost catch-up contributions and explore new lifetime income solutions. According to a June 2025 Morningstar commentary, advisers anticipate policy pressure for expanded retirement plan access and auto-enrollment in 2026, given persistent savings gaps. Market consensus suggests continued volatility in both equities and bonds, keeping the outlook for retirement security in flux.
Average Savings for 55-64 Year Olds Signals Portfolio Review in 2025
This year’s data on average savings for 55-64 year olds underscores the need for proactive review of investment plans, including reassessing risk, maximizing catch-up contributions, and staying informed on policy updates. As the retirement landscape evolves, monitoring market conditions and adjusting strategies will be essential for securing financial well-being.
Tags: retirement-savings, 401k, $FNF, 55-64-age-group, investment-strategy
