Here’s how your savings compare — plus one simple way to save more.
A robust nest egg is critical for a financially secure retirement. With the cost of living consistently increasing, Social Security continuing to struggle, and few workers having access to other sources of income, such as pensions, most older adults will need to rely heavily on their personal savings.
But determining how much to save can be tricky. Everyone’s situation is different, and goals may vary widely depending on factors like your age, where you live, and your expectations for retirement.
Comparing your retirement fund to others’ your age isn’t necessarily the best way to gauge whether you’re on track, but it can be helpful to see how you stack up to the average. 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.
How do your savings compare?
Each year, Vanguard releases its How America Saves report to provide insight into workers’ retirement goals and overall financial health. Its 2024 report revealed that the average 401(k) balance among Vanguard account holders ages 55 to 64 is $244,750. The median figure (which may be more accurate as it accounts for extreme outliers) is just $87,571 for this age group.
Again, individual savings goals will vary. There’s a good chance, however, that you’ll need to save more than you think. So, if you still have a few years left before retirement, now is the time to supercharge your savings.
One way to do that is to take full advantage of employer matching contributions if you have access to this perk. The employer match is essentially free money, and by contributing enough to earn the full match, you could boost your savings by thousands of dollars per year with next to no effort.
Saving for retirement is tough, but small steps can go a long way. By determining your unique retirement goals and saving even slightly more now, you can enjoy a far more comfortable retirement.