While Americans now believe they'll need $1.46 million to retire comfortably, according to a Northwestern Mutual survey, most workers don't have this amount saved by the time they retire. If you're wondering how much people ages 65 and older have in 401(k)s, the below numbers will give you a glimpse of reality.
Average 401(k) balances for workers in their senior years
The average balance in a 401(k) account for American workers 65 and older was $232,710 in 2022, while the median was only $70,620, according to a Vanguard analysis. Averages may tilt higher than the median due to higher-income earners or those with larger nest eggs skewing the average upward. Nevertheless, these numbers provide a general idea of how Americans are doing in this age group.
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Although average 401(k) balances continue to rise for those 65 and older, the median 401(k) balance starts to taper off after the 55 to 64 age bracket. This decline is expected, as more people may withdraw 401(k) funds to support themselves or are subject to required minimum distributions (RMDs) in their 70s.
| Age | Average 401(K) Balance | Median 401(K) Balance |
|---|---|---|
| 35 to 44 | $76,354 | $28,318 |
| 45 to 54 | $142,069 | $48,301 |
| 55 to 64 | $207,874 | $71,168 |
| 65 and older | $232,710 | $70,620 |
Data source: "How America Saves," Vanguard.
Your 401(k) balance may be more or less than the average, but it's important to assess your own retirement needs to see if you're on track. Evaluate your retirement income sources and expenses, and plan accordingly.
For a quick estimate, Fidelity recommends saving at least 10 times your salary by age 67. Alternatively, if you follow the 4% rule and find you're short $30,000 annually after accounting for Social Security, aim to save around $750,000. Keeping tabs on your savings and goals will help reduce future surprises and lead to a better retirement.
