With so many different lifestyles and job paths in the world today, rarely do people build wealth in the same way as their neighbor, and rarely do they end up with the same amount of savings when it comes time for retirement.
It's certainly not a contest, but workers want to ensure they're saving enough and taking the right steps to support their lifestyle in retirement, whatever it may be. So when new data becomes available regarding the retirement savings of a broad swath of Americans, it's worth taking a look.
This information can help retirees set their own financial goals as they think about retirement. With that in mind, Vanguard, one of the country's leading investment management firms, recently released its "How America Saves 2025" report. Data from the report covers approximately 5 million participants in defined contribution plans administered by Vanguard.
Here's the average retirement account balance for Vanguard participants in 2024. Do your savings stack up?
Retirement savings continue to increase
In defined contribution plans, which cover half of all private-sector workers, employees allocate a portion of their paychecks to their retirement accounts, and employers also have the option of offering some kind of matching contribution. The contributions are made pre-tax, and the funds can be invested with capital gains taxes not due until withdrawals are taken. Withdrawals are typically not allowed until a worker is at least 59.5 years old, and required minimum distributions begin at age 73.
Image source: Getty Images.
In 2024, the average Vanguard account had a balance of $148,153, up 10.5% from the average balance in 2023. The median balance was $38,176, up 8.2%. The stark contrast between the average and median account balances can be attributed to ultra-wealthy individuals who skew the average higher.
According to Vanguard, roughly 30% of accounts included in the analysis had a balance of less than $10,000 and 30% also had a balance of more than $100,000. Roughly 16% of participants had balances of at least $250,000. Vanguard also broke down the average and median balances by age group.
| Age Range | Average Balance | Median Balance |
|---|---|---|
| <25 | $6,899 | $1,948 |
| 25-34 | $42,640 | $16,255 |
| 35-44 | $103,552 | $39,958 |
| 45-54 | $188,643 | $67,796 |
| 55-64 | $271,320 | $95,642 |
| >65 | $299,442 | $95,425 |
Data source: Vanguard
Other data included retirement balances by job industry. Media, entertainment, and leisure had the highest median account balance by far at $102,681. Next on the list was finance, insurance, and real estate at $62,316. Participants from the media, entertainment, and leisure sectors had the highest deferral rates (e.g., savings rates). They also had the most participants contributing the maximum allocations to their accounts.
Are people saving enough?
It's a fair question when you consider inflation over the last several years, which has seemingly made everything expensive. Based on benchmarks from another major investment management company, Fidelity, the Vanguard data indicates Americans are not saving enough.
Specifically, Fidelity recommends saving 10 times your annual salary by the time you are 67. This assumes a person saves 15% of their income annually starting at age 25, including any employer match. Fidelity also assumes a person will invest over 50% of their savings, on average, in stocks over their lifetime, and they will maintain a similar lifestyle as the one they had before retiring.
Salaries may vary, but take another look at the median and average balances above for those 65 and over, and it becomes clear many Americans are falling short of Fidelity's guidelines. Of course, there are other factors at play. People with Vanguard accounts may have other retirement savings elsewhere, and savings don't necessarily factor in income from post-retirement sources like Social Security.
At the end of the day, there is no single right amount to save for retirement -- it's all about how you plan to live. Regardless of whether you wish to enjoy a simple or extravagant lifestyle, the earlier you start saving and investing, the more money you are likely to have. It's never too early to start, and it's never too late to increase the amount you are stashing away each year.
