This Is the Average 401(k) Balance for Retirees Age 65 and Older
Trying to keep up with the Joneses isn't usually a good idea. But trying to keep up with -- or outperform -- others in your age group is a fine idea when it comes to saving for retirement.
Here is a look at average 401(k) account balances for those aged 65 and older, along with some younger cohorts, via Vanguard.
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|
Age |
Average 401(k) balance |
Median 401(k) balance |
|---|---|---|
|
Younger than 25 |
$7,351 |
$2,816 |
|
25-34 |
$37,557 |
$14,933 |
|
35-44 |
$91,281 |
$35,537 |
|
45-54 |
$168,646 |
$60,763 |
|
55-64 |
$244,750 |
$87,571 |
|
65+ |
$272,588 |
$88,488 |
|
Total average |
$134,128 |
$35,286 |
Data source: How America Saves 2024, Vanguard.
See? Those nest eggs are still on the small side. Even $272,588 isn't going to support anyone very well over, say, a 25-year retirement -- it's not even $11,000 annually, and by year 25, inflation may have shrunk the buying power of those dollars by 50% or more.
Meanwhile, we really should be looking at the median numbers, and they're even lower! As a reminder, medians reflect the midpoint value in a series of numbers, while averages are just... averages, potentially skewed by ultra-high or low outliers. For example, imagine this series of numbers: 8, 2, 7, 31, 7. To average them, add them together and divide by five. The average is 11. But arrange them in order -- 2, 7, 7, 8, 31 -- and the middle value -- the median -- is 7. Median numbers can often give you a more representative idea of a typical value in the group of numbers.
So if you're not yet retired and you're behind in your saving and investing for retirement, what can you do? Well, start by saving more and investing long-term dollars effectively -- perhaps in a simple, low-fee index fund. Consider taking on a side gig for a while, to earn more. You might also delay retiring by a few years, while delaying claiming Social Security, too. (For most folks, the best strategy is to wait to claim until age 70.)
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