Are you saving enough for retirement? See how your contributions compare to those of others like you

While younger generations are starting to save earlier than ever, the typical nest egg still falls short of what is needed to retire comfortably. In fact, many may not know it.

“We ask people how much they estimate they need to save for retirement to feel financially secure,” said Katherine Collinson, executive director of the Transamerica Institute, which surveyed 5,000 middle-class Americans about their retirement readiness. “Then we ask them how they came up with that number, and about half of them say they guessed.” Investopedia.

Below, we tell you how much the average person in your age or income group has saved for retirement.

Compare where you stand

Your retirement savings should grow as you age, but the amount you save in your 401(k) and other retirement accounts will change as your needs change and life circumstances evolve. Middle-class Americans in their 20s have saved an average of $43,000, which rises each decade to about $277,000 for those in their 60s, according to the survey.

Why the big jump in average savings? Time and compound work in your favor when you start early. “If you are younger and have more time, the time value of money and doubling investments is extraordinary,” Collinson said.

But there’s another factor: People in their peak earning years — typically in their 50s and 60s — can contribute more aggressively as major expenses like mortgages and children’s education expenses decline. Among middle-class Americans in their 60s, 16% have saved $1 million or more, compared with just 1% of people in their 20s, according to the survey.

Of course, income is the most important indicator of retirement savings. Vanguard clients with defined contribution accounts like 401(k) who earn less than $15,000 have a median balance of $4,055, while those making $150,000 or more have $221,220 — more than 50 times that, according to the Vanguard report.

The gap widens significantly at higher income levels. Workers earning $30,000 to $49,999 saved an average of $10,928, but jumped into the $50,000 to $74,999 bracket and balances more than doubled to $27,528. Cross into six figures and the numbers go up: $98,434 for those earning $100,000 – $149,999.

How to catch up

If typical savings numbers seem daunting and you’re behind on retirement savings, there’s still time to make real progress, no matter when you start. The key is to turn vague goals into a concrete plan and eliminate the guesswork that many use.

There may be reasons beyond your control that cause you to receive less savings than the typical numbers as well. “Generation

Here are the steps experts often suggest taking to bridge the gap:

• In your twenties and thirties:Focus on consistency. Even small automatic contributions to a 401(k) or IRA can add up over time thanks to compounding. Aim to increase your savings rate by 1% each year.
• In your 40s and 50s: Focus on catch-up contributions. Once you reach age 50, the IRS allows you to add an additional $7,500 per year to your 401(k). Increasing your savings rate during peak profitable years can make a big difference.
• In the 1960s and beyond: Reconsider your withdrawal strategy. A timely delay in claiming Social Security — or cutting back on your expenses — can significantly extend the life of your savings.

At all ages, if an employer offers you a match, never leave that “free money” on the table. Matching 50% of contributions up to 6% of pay is actually a guaranteed return.

Another key piece of advice, regardless of your age or income: “Don’t beat yourself up,” Collinson said. You don’t need to tackle everything at once, but break it down into manageable tasks. “Maybe you have a 10-step plan. If you take one step a month, by the end of the year, you’ll have a plan, which is much more than if you did nothing.”