Typical Americans don’t seem to have socked away as much as they’ll likely need or want.<\/p>\n
Selena Maranjian
\n\u00a0|\u00a0 The Motley Fool<\/p>\n
We often want to know how we’re doing. For example, you might wonder how your 401(k) account<\/a> balance compares to others your age.<\/p>\n In the table below, you’ll find average — and median — 401(k) balances for a bunch of age groups:<\/p>\n Age range<\/p>\n Average 401(k) balance<\/p>\n Median 401(k) balance<\/p>\n<\/tr>\n 20s<\/p>\n<\/td>\n $97,440<\/p>\n<\/td>\n $37,668<\/p>\n<\/td>\n<\/tr>\n 30s<\/p>\n<\/td>\n $193,895<\/p>\n<\/td>\n $77,546<\/p>\n<\/td>\n<\/tr>\n 40s<\/p>\n<\/td>\n $392,026<\/p>\n<\/td>\n $158,093<\/p>\n<\/td>\n<\/tr>\n 50s<\/p>\n<\/td>\n $607,055<\/p>\n<\/td>\n $249,136<\/p>\n<\/td>\n<\/tr>\n 60s<\/p>\n<\/td>\n $568,040<\/p>\n<\/td>\n $188,792<\/p>\n<\/td>\n<\/tr>\n 70s<\/p>\n<\/td>\n $420,975<\/p>\n<\/td>\n $92,611<\/p>\n<\/td>\n<\/tr>\n 80s<\/p>\n<\/td>\n $413,614<\/p>\n<\/td>\n $78,534<\/p>\n<\/td>\n<\/tr>\n Data source: Empower Personal Dashboard as of June 30, 2025.<\/p>\n What these numbers mean<\/p>\n These average and median 401(k) balances<\/a> tell us a lot. Recall what a median number is — it’s the middle number in a series of numbers arranged in order. So if your series is 78, 101, 135, 204, and 712, the average of those numbers is 246 — but the median is 135. It’s important to remember that averages can be skewed by unusually high or low numbers.<\/p>\n So the average 401(k) balances are technically correct, but they don’t really reflect a typical saver. The median figures are more representative of the group.<\/p>\n Meanwhile, even those bigger average numbers are worrisome, because they may not be enough to retire with<\/a>. The helpful (but flawed) 4% rule<\/a> can help you understand why.<\/p>\n It suggests withdrawing 4% of your nest egg in your first year of retirement, adjusting for inflation in subsequent years. (There are other withdrawal strategies<\/a> to consider, by the way.) So taking out 4% of a nest egg of, say, $568,040 from the table, you’d be withdrawing around $22,720 in your first year of retirement.<\/p>\n Couple that with the average annual Social Security benefit as of July, around $24,000, and your income would be around $46,720. That’s clearly not enough for lots of people. If you’re starting to worry, consider delaying retiring by a few years<\/a>, and\/or delay claiming Social Security. (For many people, the best strategy is to wait to claim until age 70<\/a>.)<\/p>\n The Motley Fool has a disclosure policy<\/a>.<\/p>\n The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.<\/p>\n The\u00a0$23,760\u00a0Social Security bonus most retirees completely overlook<\/p>\n Offer from the Motley Fool: <\/b>If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known\u00a0“Social Security secrets”<\/a><\/strong>could help ensure a boost in your retirement income.<\/p>\n One easy trick could pay you as much as $23,760 more<\/strong>… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. JoinStock Advisorto learn more about these strategies.<\/p>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n