Key Points
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The average might be bigger than you expect.
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Everyone’s situation is unique.
Comparing your retirement savings nest egg to everyone else’s can paint a misleading picture. Everyone’s situation — and needs — are different. You may be fine with less. Or, you might need more than most.
Still, it can be telling to see where you stand in relation to other people in your age bracket.
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To this end, here’s a look at the average retirement savings for baby boomers, which I’m defining as age 61 to 79, as of the end of last year, according to mutual fund company and retirement plan administrator Fidelity.
The number(s)
There are two different numbers to consider here. The first is the average 401(k) balance for baby boomer-aged participants invested in workplace retirement plans. This figure stands at $249,300, according to the Fidelity data.
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Then there’s the average value of baby boomers’ ordinary IRAs or Roth IRAs. Fidelity says this number reached an average of $257,002 as of the end of 2024. The sum of the two figures jibes with the Federal Reserve’s most recent calculation of the average total retirement savings for people around this age.
Perspective
But what if you’re a baby boomer with nowhere near that much socked away? Or a younger investor who doesn’t think they’ll ever get there? I say: Don’t sweat it too much. Think about what you’ll need, not what others have.
These averages are skewed higher by a handful of unusually large IRA and 401(k) accounts. A similar report from retirement plan administrator Vanguard indicates the median (or midpoint) workplace retirement account balance for its 65-and-up participants is only about one-third of the mathematical average for this age group. Assuming Fidelity’s plans’ participants are similar to Vanguard’s, only half of Fidelity’s retirement plan participants between the ages of 61 and 79 have saved more than one-third of this average 401(k) balance of $249,300, or $83,100. The other half would have less.
Again though, don’t panic if you’ve got less, and don’t celebrate if you’ve got more. Your retirement plan should be customized for you based on your situation and your needs.
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