How Much the Average Massachusetts Resident Has in Retirement Savings

If you've ever wondered how your retirement savings compares to others in Massachusetts and across America, then you're not alone. Knowing what others in your age group have in retirement savings is a good indictor for if you should be investing more. Of course, you can't just expect to have the same savings as someone else, because everyone's situation is different. But, it helps to get a ballpark idea of what people in your age group are doing to prep for the future.

The experts at The Motley Fool have put together a roster of how much in savings each age group has at the moment. "It's imperative that you're financially prepared for retirement, they note, adding that, "living on Social Security alone is difficult, so you'll want an additional source of income."

So, how can a monthly contribution to a retirement plan really add up? It all comes down to compound interest, which is the interest you earn on interest. "Compound interest includes interest on the initial principal balance of a loan or deposit and accumulated interest from previous periods," notes Investopedia. They add, "Compound interest is interest that applies not only to the initial principal of an investment or a loan, but also to the accumulated interest from previous periods" and that it "involves earning, or owing, interest on your interest."

Let's get the age groups in the state. According to Motley Fool, which used Vanguard data, if you're under 25, the average retirement savings is $7,351 and the median is $2,816. Going up the age bracket, for those 25 to 34, the average retirement savings is $37,557 and the median is $14,933; for ages 35 to 44, the average is $91,281 and the median is $35,537; and for ages 45 to 54, the average is $168,646 and the median is $60,763.

Looking at the top tiers, for ages 55 to 64, the average retirement savings is $244,750 and the median is $87,571, and for those 65 and older, the average is $272,588 and the median is $88,488.

Some advice is to invest as young as possible, as the Motley Fool notes that $1,000 invested at age 20 could become $37,232 by age 87.