If you want to be on track with your retirement savings and investments, it makes sense to wonder where other people are — specifically, people in your age range.
Image source: Getty Images.
Here’s a look at the average 401(k) balance for people in different age groups, per the folks at Vanguard, which administers the 401(k) accounts of millions of people:
|
Age |
Average 401(k) Balance |
Median 401(k) Balance |
|---|---|---|
|
Under 25 years old |
$7,351 |
$2,816 |
|
25 to 34 |
$37,557 |
$14,933 |
|
35 to 44 |
$91,281 |
$35,537 |
|
45 to 54 |
$168,646 |
$60,763 |
|
55 to 65 |
$244,750 |
$87,571 |
|
65 and older |
$272,588 |
$88,488 |
Data source: Vanguard.
It’s all very interesting, but keep these thoughts in mind:
- The average numbers are higher because there are a bunch of accounts with a lot of money in them. That can skew the average higher. Thus, it can be more useful to focus on the median numbers, which represent the midpoint values. (So if there are 3,000,000 accounts, ranked by their value, the median number shows the value of account No. 1,500,000. Half the values in the group are higher than the median, and half are lower.)
- Don’t aim to meet or slightly beat the numbers for your age group above — because they’re generally rather low. If you’re 50, you should, ideally, have much more than $168,646 socked away. Retiring with $272,588 is likely to be very tough, unless you have a lot of other retirement income lined up. Indeed, for many people, retiring with $1 million won’t be enough.
- Remember that these numbers only reflect 401(k) accounts. Ideally, you might also have a well-stocked IRA account or two, plus, perhaps, a regular, taxable brokerage account.
Take the time to develop a solid retirement plan — and then stick to it, saving and investing effectively for many years.
The $22,924 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.
View the “Social Security secrets” ›
The Motley Fool has a disclosure policy.