Are 40-somethings Preparing a Retirement Account?

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Are People in their 40s Saving in a Retirement Account?

Nearly four in 10 people in their 40s still have no retirement account, despite being about 20 years from retirement age. Yet these Americans in their 40s are more likely to have retirement savings than their parents were at the same age, and those who do have about three times as much. This is according to the Federal Reserve’s Survey of Consumer Finances (SCF), which has tracked household balance sheets every three years since 1989. The 2022 wave is the most recent and the results from the 2025 survey are due later this year.

In 1989, just 50% of Americans ages 40 to 49 had any money in a retirement account. By 2022, that figure had climbed to 61%.1. Participation peaked in 2001, at 64%, then drifted lower for much of the next two decades. This is important because your 40s are the last decade when compounding can do much of the heavy lifting in boosting retirement savings, with a dollar saved at 45 having about 20 years to snowball in size.

Compared with the late 1980s, today’s 40-somethings are more likely to have a retirement account, and those who do have about three times as much. Measured against the early 2000s, progress is less apparent. Participation has essentially stalled for more than 20 years. And the typical saver’s balance in 2022, about $83,600, was about the same as in 2007, before the financial crisis.

Planning for retirement and planning for your estate go hand in hand. Together they are part of securing your financial future. A well-structured retirement plan and should align seamlessly with your estate plan so that your wealth is protected, your wishes are honored, and your legacy is passed down efficiently. By taking a proactive approach, you can maximize your retirement savings while safeguarding your assets for future generations.