This Is the Average 401(k) Balance for Ages 45 to 54

Around a third of working-age Americans (15 to 64 years old) own a 401(k)-style account. It's by far the most popular retirement account in the country, and there isn't a close second. Its popularity is well earned, too.

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A 401(k) not only lets you passively save and invest for retirement, it also gives you a tax break while doing so by lowering your taxable income for the given year. It's a win-win, if you ask me.

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How does your 401(k) balance compare to people age 45 to 54?

Considering how important a 401(k) is to millions of Americans' retirement income, it makes sense to wonder how your balance compares to those in your age range.

Based on a 2024 analysis by the investment company Vanguard, the average 401(k) balance for someone age 45 to 54 is $168,646.

Since averages can be skewed by extremes (both low and high), it's also worth noting that the median balance for those in that age range is $60,763.

How much should you be contributing to your 401(k)?

There is no set amount that everyone should contribute to their 401(k) because people's finances and retirement goals vary widely.

If you're a high earner with more disposable income, contributing a lot to your 401(k) could be feasible without jeopardizing your livelihood. If much of your income has to be used for bills and daily expenses, maybe you don't prioritize trying to max out your 401(k).

That said, my one piece of advice is to set your minimum contributions to the most your employer will match. If it will match up to 3% of your contributions, make 3% your minimum; if it will match up to 5%, make that your minimum.

Contributing anything less than what your employer will match is essentially leaving free money on the table. View it as a guaranteed and automatic 100% return on your contributions.

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