This Is the Average 401(k) Balance for Ages 55 to 64

I won't keep you in suspense. The average person in the 55-to-64 age group has $244,750 in a 401(k), according to the 2024 edition of Vanguard's How America Saves report.

With that in mind, there are two big caveats.

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First, although the average is nearly $245,000, the median 401(k) balance among this age group is $87,571. I'll spare you the math lesson, but a median this far below the average suggests that there are a relatively high number of small-balance accounts skewing the data.

Second, it's important to note that this is the average balance in participants' Vanguard 401(k) accounts. Some people have money saved in non-retirement accounts, and many have more than one retirement account. For example, one popular strategy is to use both a 401(k) and a Roth IRA to save for retirement.

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How much should you have saved when you're 55 to 64?

Of course, there is no one-size-fits-all answer, but it's fair to say that the average person might not have enough money for a comfortable retirement.

The amount you need depends on a few factors, including how much you have saved in non-retirement accounts, your expected spending habits after you retire, whether you have other income sources (like a pension), and whether you have debt.

Having said that, a good rule of thumb from Fidelity is that you should aim to save eight times your annual salary by the time you turn 60. So if you make $75,000 per year, $600,000 in savings would put you on track for a comfortable retirement.

Again, this isn't a perfect rule, and you should absolutely take your personal situation into account. But the point is that many Americans might have some catching up to do.

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