This Is the Average 401(k) Balance for Retirees Age 65 and Older
I feel confident saying that few middle class working Americans are satisfied with the amount of money that they have set aside for their retirement.
Social security will not be enough - we must save and augment our savings for a comfortable retirement.
Monthly contributions (no matter how small) will add up over the years and you will find that as you progress in your working life you will be able to set more aside.
It is our personal responsibility to prepare for our retirement - no one else's.
S E E D E D C O N T E N T
Before you clock out of your career for good, there are a few things you'll want to check off your list -- and your retirement savings is probably near the top. We dug into the average 401(k) balances for retirees age 65 and older to give you a better idea of how much Americans have saved. Spoiler alert: It's a far cry from the million-dollar target you often hear about. But remember, these numbers don't factor in what folks may have socked away in other retirement accounts.
How much do retirees 65 and older actually have saved?
The average 401(k) balance for retirees age 65 and older is $272,588, according to Vanguard's analysis of nearly 5 million accounts at the end of 2023. While that number isn't bad, it's not much to boast about if you don't have other sources of income lined up for retirement.
What's probably more telling is the median balance (midpoint), which shows that 50% of 401(k) holders 65 or older have less than $88,488 saved. This figure represents what's more typical, while the average is likely inflated by outliers, like 401(k) millionaires with much larger savings.
If you haven't clocked out of the workforce yet, you can compare your savings to your age group and then see if you need to make any adjustments to crush your personal goals.
| Age | Average 401(k) Balance | Median 401(k) Balance |
|---|---|---|
| Younger than 25 | $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 64 | $244,750 | $87,571 |
| 65 and older | $272,588 | $88,488 |
| All age groups | $134,128 | $35,286 |
Data source: How America Saves 2024, Vanguard.
The reality is that most people don't have a large chunk of money stashed away for retirement. However, these numbers can inspire you to take action, whether that means beefing up your contributions or adjusting your saving strategy to ensure you're on track for a more comfortable retirement.
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I was never much of a saver early in my life.
Thank goodness I married a wonderful woman, who was a great manager of our household and who understood (and taught me) that the future will not take care of itself.
We mut prepare for the future - it is our responsibility to ourselves and to our children to be ready for the challenges of retired life.
My savings history began with Christmas Club accounts (shared with my brothers) in the 50's where we would deposit nickels, dimes and quarters we might receive for chores we accomplished.
Of course we wanted to spend the money on shiny things or candy, but it was always great at Christmas when we divided the money and went on our shopping spree with $2 or $3 each in our pockets.
The disparity in the table between the average and the median 401K is striking.
But it really represents not much more than the disparities of income over lifetimes. People who dont make much money are rarely going to be able to save a lot. Yeah, a few do, but not many.
good points, but
The disparity between the mean and the average of any economic factor in the U.S. (and elsewhere) is always going to be striking.
The more people do for themselves - to increase their education, their earning power, their contribution the higher their wages will be and learning to do without until one can afford to pay for something is a tough but necessary lesson.
Well at least we now have Sports Betting to add to casinos and lotteries and that's just the legal wagers.
We have a problem in this country with individuals and their priorities. When I see some young guy with an expensive vehicle topped off with expensive rims, it’s a given that their retirement account either doesn’t exist or is tiny. It’s as if they feel an entitlement to spend their future source of living expenses on their current appearance of status.
And with a $1000 cell phone in one hand and a $7 latte in the other