The average worker believes he or she will need a whopping $1.8 million saved for retirement, according to a 2024 survey from Charles Schwab.
Retirement planning is a highly personal process, and everyone's situation will differ. You could need well over $1 million to retire comfortably, while others may be able to get by on far less. While the average 401(k) balance shouldn't necessarily guide your saving strategy, it can sometimes be helpful to see where you stand.
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The average 401(k) balance is lower than you might think
Those age 65 and older generally have higher retirement account balances than younger workers, but the average even among this age group is lower than you might expect.
According to Vanguard's 2024 edition of its How America Saves report, the average balance among Vanguard 401(k) participants age 65 and older is $272,588. The median balance, which may more accurately represent the typical American, is just $88,488.
To be fair, one potential reason for a lower account balance is that many people in this age group are already retired and actively withdrawing from their savings. However, these balances are only slightly higher than the average and median for those aged 55 to 64.
| Age Group | Average 401(k) Balance | Median 401(k) Balance |
|---|---|---|
| 45 to 54 | $168,646 | $60,763 |
| 55 to 64 | $244,750 | $87,571 |
| 65 and older | $272,588 | $88,488 |
Data source: Vanguard.
Again, everyone's saving goals will be different, and there may be some older adults who can retire easily on just over $250,000 in savings. But rather than using averages to guide your savings plan, it's wise to base your target on your unique situation.
By calculating your personal retirement goal, it will be far easier to determine whether you're on track for a financially secure future.
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