While everyone's retirement needs will differ, it's not uncommon for older adults to need well over $1 million to retire comfortably. In fact, the average worker expects to need around $1.8 million to retire comfortably, according to a 2024 survey from Charles Schwab.
Sometimes, it can be helpful to see how your savings compare to others your age. Here's what the average 401(k) balance looks like for Americans age 65 and older, plus the simplest way to determine your own savings goal.
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The average account balance among older adults
In a 2024 report, Vanguard published details on the average savings among Vanguard 401(k) participants.
Among those age 65 and older, the average 401(k) balance is $272,588. However, the median may offer a more realistic look at the typical savings, as the average is often skewed by extremely high earners. The median 401(k) balance among those age 65 and older is just $88,488.
Now, there is a good chance that these numbers are relatively low because some study participants may be well into retirement age and have spent much of their savings already. That said, adults age 55 to 64 have an average and median balance of $244,750 and $87,571, respectively -- meaning most Americans are nowhere near the $1.8 million average goal.
How much should you save?
One of the best ways to determine whether you're on track is to run your information through a retirement calculator. Be as realistic as you can with your inputs, and if your situation changes (like if you decide to retire earlier than you'd planned), it's wise to recalculate your goal.
Keep in mind, too, that this is only an estimate. While it's important to calculate your goal as accurately as possible, it may also be wise to have some wiggle room in your budget to prepare for any unplanned costs.
By calculating your unique goal rather than solely comparing your balance to the average, you can set yourself up for a more secure retirement.
