You might want to ramp up your savings before retirement if you’re falling below the average.
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.
