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.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »
Image source: Getty Images.
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.
The $22,924 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.
View the "Social Security secrets" »
The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
