By your late 40s or early 50s, retirement planning often takes center stage. Maybe you've been socking away money in your 401(k) for decades and want to make sure you're on track, or perhaps you're hustling to make up for lost time. Either way, taking a peek at how your peers are doing can add a little extra motivation.
The average 401(k) balance for those aged 45 to 54 lags behind older generations, coming in at $168,646 by the end of 2023. However, it's still higher than the overall average 401(k) balance across all age groups, which clocks in at $134,128. These figures come straight from Vanguard's "How America Saves 2024" report, which reviews the retirement savings habits of nearly 5 million account holders.
But here's where it gets interesting: The median 401(k) balance for this age group is just $60,763. In other words, half of 401(k) holders have saved less than that. Unlike the average, which can be inflated by super savers with big balances, the median gives you a clearer picture of what's more common.
Are you a bit surprised? Let's take a closer look at how other age groups are faring with their retirement savings.
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 |
All told, it doesn't matter if you're ahead or behind your peers. Retirement planning is personal, so focus on lining up enough income from all sources to cover your expenses. Use the numbers as motivation to keep tabs on your goals and work toward the retirement you've dreamed of.
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