Determining how much you need to have saved in a 401(k) in your late 40s and early 50s can be tricky because so many factors come into play. However, comparing your 401(k) balance to those of others in your age group can help you see how you stack up against your peers. Plus, it might motivate you to stash away extra cash to beef up your savings.
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What is the average 401(k) balance for those aged 45 to 54?
The average 401(k) balance for those aged 45 to 54 is $168,646 as of the end of 2023. That’s according to Vanguard’s How America Saves 2024 report, which dives into savings habits of nearly 5 million account holders.
| 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.
Truth be told, it might be surprising that the average 401(k) balance for those 45 to 54 tops the six-figure mark. But there’s a caveat: 401(k) accounts with a lot of money in them can drive up the average. A more meaningful number to keep tabs on is the median balance (middle value), which is $60,763. Basically, the median shows that half of 401(k) participants have saved more than $60,763, while the other half have less.
Comparing your 401(k) balance to others’ can be useful, but don’t get caught up in what everyone else is doing. Even if you’re ahead of the average for your age group, that doesn’t necessarily mean you’re on track to crush your retirement goals. Your best bet is to use these numbers as motivation to think about your own goals and take action to support those goals before retirement rolls around.
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