Question: At 54, we're young grandparents. My wife wants to start a college fund for our grandson, but I think we have to focus on funding our retirement. We've already saved $1.8 million. Who is right?Answer: As of 2022, the most recent year for which data are available, the average retirement savings balance among 54-year-olds was about $313,000, per the Federal Reserve. If you're 54 years old with $1.8 million saved for retirement, you're clearly in a strong position compared to the typical person your age.Just because you've amassed a $1.8 million fortune by age 54 doesn't mean your work is done, though. If you're planning to stay in the labor force for another decade or longer, you have a prime opportunity to add to your savings and buy yourself even more long-term financial security.What if that's your plan, but your wife would rather focus on making contributions to a college fund for your grandson? It's clearly a kind and generous thing to do. But it's important to strike the right balance so that a desire to help your grandson doesn't put your retirement at risk.
