Average U.S. Salary and Retirement: How Do Yours Compare?

Sixty-nine percent of American adults set a money-related goal for the new year — and 74% of them are confident they’ll be able to achieve it, according to a survey from Motley Fool Money.

Unfortunately, many of them might find it difficult to sustain that level of optimism into January and beyond.

When it comes to personal finance, U.S. respondents are insecure about how much they know: Only one-third (36%) consider themselves confident in their financial literacy, a recent report from professional survey software provider Checkbox found.

Related: Are You on Track for a Comfortable Retirement? Here’s How Much Money You Should Save Every Month Depending on Your Age and State.

So it’s perhaps not surprising that Americans’ saving habits and retirement planning aren’t necessarily setting them up for success in their golden years.

Checkbox’s research reveals that 40% of Americans save less than 5% of their income.

According to LendingTree data, the average salary in the U.S. in 2023 was $65,470, which means that people could be putting as little as $273 a month toward emergency funds or retirement accounts.

Seventy-seven percent of Checkbox survey respondents said a high cost of living prevented them from saving more, but 10% said they plan to open savings accounts, and 17% felt they’d be able to save more effectively if they had better financial knowledge.

Related: Your Retirement Savings Won’t Last If You Make These 3 Common Mistakes, Financial Advisor Warns

Nearly 60% of Americans feel insecure in their retirement plans, according to Checkbox’s data.

Over a third of Americans have no retirement plan at all, and of those who do have a retirement strategy, just a quarter began preparing before the age of 25. Almost half (42%) of those are saving for retirement with a “basic 401k scheme,” while 24% feel they don’t know enough about their retirement savings options.

“For all ages, it’s important to talk to an advisor who can help create a tailored path specific to your financial goals and set you up for a realistic retirement lifestyle,” Stacey Black, lead financial educator at Boeing Employees Credit Union (BECU), told Entrepreneur in August.

Related: Are You Actually on Track to Retire Well? A Financial Expert Reveals the Critical Milestones to Hit at Every Age — Plus 3 Common Oversights.

According to Black, it’s also important to consider how much you’ll need to save amid rising costs and inflation — because what seems like a “comfortable nest egg” today might not provide enough financial stability in the future.