Where do your retirement savings stand compared to your peers? It's not too tough to find out. Mutual fund company and retirement plan administrator Vanguard regularly publishes aggregate data for the accounts of participants in its employer-sponsored retirement plans. But those averages come with a couple of important footnotes.
Average 401(k) balance for 45- to 54-year-olds
In its 2024 report on the subject, Vanguard said the average balance for its 401(k) plan participants between the ages of 45 and 54 was $168,646, which is in line with rival plan administrator and mutual fund outfit Fidelity's figure of $192,200 for the 45-to-60 crowd -- including folks who have had up to five additional years to add money to their accounts and benefit from the market's growth makes a sizable difference.
However, it is important to recognize that these averages are skewed sharply higher by a relatively narrow slice of high-income workers. The median 401(k) account balance for all 45-to-54-year-old participants in Vanguard's retirement plans is just $60,763. This means that half of its plan participants in this age bracket have less than $60,763 in their 401(k) plans. Of course, it also means that half of them have more.
Worry about you more than other people's savings
These figures are relatively low compared to what many financial planners say you'll need for a financially secure retirement. But different people have different expectations for what their retirement will look like.
The best way to move forward is to start by making a savings and investing plan that's specific to you and your expected future needs, if you don't already have one. This will require some pencil and paper, and perhaps even a little conjecture. But, it will be time well spent. Just making a plan is half the battle.
