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Even if we take the average $244,750 balance for 401 (k)s, when we apply the popular 4% rule, a nest egg that size amounts to about $9,800 in annual retirement income.
The average 401 (k) balance for retirees age 65 and older is $272,588, according to Vanguard's analysis of nearly 5 million accounts at the end of 2023.
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.
Again, the average 401 (k) balance is more than twice the median balance, reflecting the larger savings capacity of high-wage earners and those resolved to maximizing their 401 (k) plan.
The report includes a breakdown of account balances among Vanguard 401 (k) participants, separated by age. Among all workers across generations, the average 401 (k) balance is $134,128, according ...
By the end of 2023, Vanguard found that the average 401 (k) balance for those ages 55 to 64 was $244,750. That's not too bad, especially when combined with savings in other retirement accounts.
401 (k) In the United States, a 401 (k) plan is an employer-sponsored, defined-contribution, personal pension (savings) account, as defined in subsection 401 (k) of the U.S. Internal Revenue Code. [1] Periodic employee contributions come directly out of their paychecks, and may be matched by the employer.
Here's what the average 401 (k) balance looks like among those ages 55 to 64, as well as one simple trick for saving more. Two people sitting together outside and smiling.