All told, retirement planning may not top your to-do list when you're in your late 30s or early 40s. But here's the deal: if you're after a comfy retirement, you want to start squirreling away funds as early as possible to lighten the load later. Need a little nudge? Checking out how your peers are stacking their 401(k) balances could get you moving in the right direction.
We've popped open the hood to show you how others are faring.
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Average 401(k) balance for workers age 35 to 44
By the end of 2023, the average 401(k) balance for those aged 35 to 44 clocked in at $91,281. Meanwhile, across all age groups, the average balance stood at $134,128. These nuggets of data come straight from Vanguard's "How America Saves 2024" report, which delves into the retirement savings habits of nearly 5 million account holders.
Here's a peek at how other age groups are doing.
| 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. Chart by author.
It's no surprise that younger folks tend to have slimmer 401(k) balances than those heading into retirement. But here's the eye-opener: the median 401(k) balance for those aged 35 to 44 sits at just $35,537, meaning half of these savers have less stashed away. The median can give you a better snapshot of the norm, while the average can be skewed by a few accounts with a lot of money in them.
Of course, your projected income and expenses in retirement are the numbers you need to pay attention to. Once you have a ballpark estimate, you'll know if there's more savings to do or if you're on track to live the retirement you've dreamed of.
