Money Management

The median retirement savings in the U.S. is $86,900. Find out how yours compares and how to increase the amount you have saved for your future. 

Saving money for retirement is one of the most important uses of your money. If you aren’t putting aside cash in a 401(k) or a tax-advantaged retirement account at a brokerage firm, you are setting yourself up for disaster. When you get to retirement and discover Social Security only replaces about 40% of your pre-retirement income, you’re quickly going to discover you absolutely need some investments to provide additional funds.

To help you get an idea of where you stand with retirement savings, you may want to compare your current account balance to what your fellow Americans have set aside. Here’s what you need to know in order to do that.

This is how much the typical American has saved for retirement

According to the Federal Reserve, 54.3% of families hold some type of retirement account, including 401(k)s, 403(b)s, and IRAs. This is a 4% increase compared with 2019, which is great news.

However, there’s not necessarily a lot of money in these accounts. The median value of retirement plans as of 2022 was $86,900, while the mean value was $334,000. The mean balance is much higher because there are some people with very substantial retirement account balances — often in the millions — which drives up the average amount across all plans.

The Federal Reserve also showed most of the gains in retirement account balances between 2019 and 2022 went to families with incomes in the top half of the distribution, while the mean balance of IRA account balances across the bottom of the distribution actually decreased from $66,600 in 2019 to $54,700 in 2022. For upper-middle-income families, there was an increase of more than 10%, and for those in the top 10% of earners, the mean balance of retirement accounts went up to $913,300 in 2022.

How to set your own retirement savings goals

As you can see, there’s a big difference between what the typical American has saved for retirement, versus what the typical rich American has saved. And that probably comes as a surprise to absolutely no one at all.

The good news is, you do not have to be rich to save for your future, nor do you need to compete with rich people. All you need to do is make sure you are saving regularly and consistently to have the money you need to be secure as a retiree.

For most people, replacing about 10 times their final salary is a good rule of thumb when it comes to retirement. So, if you expect to be making $60,000 when you retire, you’d need $600,000 in your retirement plan by your chosen retirement age. If you plan to retire at 67, you’re starting to save at 30, and you earn a 10% average annual return, this would mean you’d need to invest only around $151.49 monthly to be on target — which may be doable for most people.

So, while it’s interesting to look at what the typical American has saved, the important thing you need to do is to set your savings goal and figure out how much you need to save each month to achieve it. You can assume 10 times your salary for simplicity and use the calculator at Investor.gov to see how much to save each month to end up with a big enough sum. Then, just set up automatic payments from your checking account to your retirement plan — or sign up for automatic 401(k) contributions at work.

If you take these two steps, you may end up with a retirement account balance much bigger than the median and average American’s and can have the retirement you deserve.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Whether you prefer plain cheese pizza or like to load up on toppings, pizza doesn’t have to be costly. Save money with these deals during National Pizza Week. 

Calling all pizza lovers! National Pizza Week is here. While this festive weeklong occasion is well underway, you have until Jan. 20 to celebrate. You can satisfy your cravings without ignoring your budget. Deals from national chains and local eateries can help you avoid overspending. Here are a few deals to help you save dough during National Pizza Week.

1. Buy one pizza, get one free at Buca di Beppo

Buca di Beppo has a BOGO deal for pizza lovers like you all week. When you buy one small cheese or pepperoni pizza, you’ll get one of equal or lesser value for free. This offer is valid on dine-in, to-go, curbside, and delivery orders at participating locations. This deal expires on Jan. 20. For online orders, enter the following coupon code: 40276-3895-9670.

2. Score an 11-inch pizza and drink for under $10 at Blaze Pizza

Blaze Pizza is another spot with a deal you won’t want to ignore. You can get an 11-inch one-topping pizza and a 16-ounce fountain drink at participating locations for $8.95. This offer is available for online pick-up orders and can be found in the digital deals section. If you’re craving pizza but don’t want to drain all the money in your bank account, this special can help.

3. Pick up a one-topping pizza at Domino’s for $7.99

Domino’s has no holiday-specific deals, but the chain regularly offers discounts. You can score a one-topping pizza for $7.99 thanks to a current carryout deal. This promotion excludes specialty pizzas and XL pizzas. This offer makes getting a tasty meal for under $10 possible.

Dominos also has other deals, like select menu items for $6.99 each when you order two or more qualifying items. Medium two-topping pizzas are eligible for this discount. You don’t have to disregard your financial goals when you order from Domino’s.

4. Get 50% off a large takeout pizza from BJ’s

BJ’s Restaurant and Brewhouse has an affordable pie waiting for you. When placing a takeout or delivery order, you can get half off any large deep dish or tavern-cut pizza, for a limited time, Tuesdays through Sundays. This deal is valid on BJ’s website or mobile app orders with promo code HALFOFF. This promotion will make your wallet and taste buds happy.

5. Pay $7 each for two medium one-topping pizzas at Pizza Hut

Pizza Hut is another option if you’re looking to plan a low-cost pizza night. You can check the chain’s website or mobile app to view current discounts available in your area. One deal worth highlighting is Pizza Hut’s $7 Deal Lover’s Menu. When you order two or more items off this menu, you’ll pay $7 for each item. Medium one-topping pizzas are included on this menu.

6. Get a Cicis Pizza buffet discount on select days through Feb. 13

It’s already Wednesday, so you can’t use this deal this week. But Cicis Pizza is running a discount buffet deal through Feb. 13. On Mondays and Tuesdays, dine-in customers pay only $4.99 per person for the adult buffet. You must show the deal on Cici’s website when you order. This promo is a winner if you plan to celebrate your love of pizza sometime later this month or early next.

Pizza deals can save you some dough

Whether you’re pizza-obsessed like me or need a simple last-minute dinner solution that won’t leave you feeling broke, these deals can make a pizza night at home less costly. You can order delivery or get takeout without racking up credit card debt. Check out our free personal finance resources for additional ways to save money.

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Looking to boost your income with a side gig? Read on for one approach you may want to take. 

If you’ve been toying with the idea of getting a side hustle, you should know that the sooner you take one on, the sooner your financial picture might improve. The income you earn from a side hustle could help you pad your savings nicely. Seeing as how 63% of Americans don’t have enough money in the bank to cover an unplanned $500 expense, according to data from SecureSave, that’s important.

Similarly, if you’re carrying a leftover credit card balance from the holidays, a side hustle could be your ticket to paying it off quickly, thereby minimizing the amount of interest you rack up. A side gig could also get you closer to meeting a big financial goal, whether it’s buying a house, upgrading your car, or building a retirement nest egg.

Working a side hustle, however, isn’t always so easy. If you want to be successful at yours, then it pays to take one specific approach.

Do something you love

The term “side hustle” implies you’re doing work on top of a primary job. And chances are, your primary job takes up a fair amount of your time. As such, it can be tough to motivate yourself to put in extra working hours when you’re already plugging away at the job that provides your main paycheck.

That’s why it’s important to find a side gig you’ll actually enjoy doing. If you take on a side hustle you dread, you may not last very long at it. Or, you may not be very efficient at it, which could result in less pay for you.

Let’s say you take on a side hustle that has you editing medical content. You may find that content boring. And if you’re paid by the project, as opposed to an hourly rate, the fact that it takes you longer to complete it could put less money in your pocket.

Similarly, let’s say you sign up to deliver groceries for extra cash, but you’re someone who hates crowded stores and you’re not a particular fan of driving. You may be less likely to put in extra hours when you dread the work.

Can you make money doing something you already enjoy?

But what if you could take something you already enjoy doing and make money from it? That may be more possible than you’d think.

Let’s say you love baking. Why not sell homemade cakes or cupcakes for money as long as local laws don’t prohibit you from doing so out of your own kitchen?

Or, maybe you love crafting. You can create a website for yourself, try to build a social media following, and then sell your wares, which you’re apt to enjoy creating.

What’s more, if playing guitar is your passion, try to get paid for it. See if local cafes and coffee shops will let you moonlight. You might start out getting paid only in tips. But if your music drums up business, that could easily turn into a gig where you get some sort of base pay on top of the money grateful customers throw your way.

You don’t want to burn out

The danger of working a side hustle is getting burned out by constantly working. That could impact not just your ability to earn extra money, but also your performance at your main job.

It pays to pursue a side hustle that doesn’t actually feel like work. Do that, and you may find that you’re wildly successful at it — and that your financial situation improves nicely as a result.

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You deserve your money back from the IRS as quickly as possible. Here’s how to expedite your tax refund. 

If the IRS is hanging onto your money, then you’re apt to want it back as soon as possible. That’s what a tax refund represents.

Contrary to what you may have been led to believe, a tax refund isn’t a form of free money. Rather, you get a refund due to paying the IRS too much the year before. So it’s natural that you’d want that cash pronto. Here are some things you can do to get a faster refund.

1. File an error-free return

Certain mistakes on your tax return may not hold up your refund. For example, the IRS can often resolve math errors on its own.

But if you make a mistake that causes the IRS to reject your tax return itself, then your refund is apt to get delayed. Before submitting your return, make sure you’ve put in the correct filing status and Social Security number. Also, make sure you’re not claiming a dependent someone else has on their return, like an ex-spouse.

2. Get your taxes done well ahead of the filing deadline

The IRS will begin accepting tax returns on Jan. 29 this year. You have until April 15 to complete your taxes, but getting your return in earlier could get you your money faster.

Mark Steber, Chief Tax Information Officer at Jackson Hewitt Tax Services, says, “The easiest answer to getting a refund sooner? File your taxes as soon as you have everything in order. But, additionally, make sure you file your federal income tax return electronically.”

While the option to file taxes on paper still exists, electronic filings are processed much more quickly by the IRS. Plus, with an electronic filing, you may be less likely to make a mistake that causes your return to get rejected.

3. Sign up for direct deposit

You don’t have to wait for a paper check to arrive in the mail when you’re due a refund. The IRS lets filers sign up for direct deposit.

Steber says, “It’s not only the fastest way for the IRS to send you your tax refund, but it’s also the safest option. E-filing and direct deposit avoids the possibility of important items getting lost or stolen in the mail or getting marked as ‘undeliverable’ if an address is incorrect.”

4. Make sure your bank account details are correct

Signing up for direct deposit is a great way to expedite your tax refund — as long as you enter the correct bank account details. But accidentally entering the wrong account or routing number could delay your refund significantly.

In that case, if the IRS attempts to send a refund, it may get rejected by the receiving bank, in which case the agency might have to simply take back its money and issue you a paper check. So review those details carefully before submitting.

You may be waiting on your tax refund to pay off your holiday credit card balance or cover some larger expenses you’ve been putting off, like getting your home or vehicle fixed. So it pays to do what you can to get your money sooner.

But also, you may want to work with an accountant to make sure you’re not having too much tax withheld from your paychecks. You’re better off getting more of your earnings as you go than waiting until the following year to get the rest of the income you’re entitled to.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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