2016 Average American Finances

American Earnings
The average American household income was $65,751 in 2015 according to the IRS. If this calculation is correct, we can expect to see that the U.S. median wage growth in 2015 and 2016 will come in at about 3% to 4%, respectively, translating into an average household income in 2016 of about $70,400.

American Debt
A recent article by the financial website NerdWallet calculated that the average household owes a total of $132,529, which includes all credit card, mortgage, auto loan, student loan, and other types of debt.

Americans are on track to surpass the amount owed at the beginning of the great recession by the end of 2016.

Other Stats

+ The average household with credit card debt pays nearly $1,300 in interest per year.

+ The average American with a 401(k) has $96,288 saved in their account.

+ The average 65-year-old can expect to withdraw just over $8,000 from their 401(k) each year if they want their money to last throughout their retirement.

+ The average personal savings rate in the United States as of Oct. 2016 is 6%.

+ This is a significant improvement from 2005, when the personal savings rate hit a low of 1.9%.

+ The 6% rate is nowhere near enough.

+ It is recommended that we save between 10% to 15% of your income.