We all know that comparing ourselves to others can be a slippery slope, but when it comes to retirement savings, it’s hard not to wonder: Am I doing better or worse than the average saver? Checking where your 401(k) balance sits can give you some insight, but remember – your retirement is your own journey and no two paths are the same.
What’s the Average 401(k) Balance?
According to Business Insider, Vanguard reported the median 401(k) balance across their accounts was $35,286 as of September 2024.
On the other hand, the average balance sits much higher at $134,128, according to the same report. Before you start celebrating – or panicking – remember that averages can be skewed by those with particularly large or small balances.
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The difference between the median and average is simple: The median shows the middle saver, while a few million-dollar accounts might pull the average up. So if you’re sitting somewhere between these numbers, you’re likely in line with many other savers.
20s (Under 25):
Median: $2,816 | Average: $7,351
30s (25-34):
Median: $14,933 | Average: $37,557
40s (35-44):
Median: $35,537 | Average: $91,281
50s (45-54):
Median: $60,763 | Average: $168,646
60s (55-64):
Median: $87,571 | Average: $244,750
65 and older:
Median: $88,488 | Average: $272,588
If you’re behind these numbers, don’t sweat it too much – there’s still time to catch up.
Trending: Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
How to Boost Your Retirement Savings
Saving for retirement isn’t a sprint; it’s more of a marathon. Even if you’re not exactly where you’d like to be, there are steps you can take to increase your savings and feel more secure about your future.
1. Automate Contributions
The easiest way to ensure you’re saving consistently is to automate it. Set up direct contributions from your paycheck into your retirement account. This way, you won’t even have to think about it. Automating helps you stick to your retirement savings goals by making saving part of your normal routine.
2. Increase Your Contributions
Try bumping it up yearly as you get comfortable with your current contribution rate. Even a small 1% increase can make a big difference over time. Automatically escalating contributions ensures your savings rate grows with your income without manual adjustments.
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