Most investors understand that retirement nest eggs are built over time rather than overnight, with steady contributions to the cause. This reality brings up a question, though. That is, how much does the typical person have in their 401(k) account between the relatively young ages of 35 and 44?
Spoiler alert: probably not as much as you might think.
The number(s)
The data comes from fund company and retirement plan administrator Vanguard. In its 2024 report based on its look at each if its plans’ participants’ savings as of 2023, the mutual fund giant says the average 401(k) balance for 35- to 44-year-olds — you know them as millennials, mostly — is a respectable $91,281.
But you don’t have that much in your 401(k), or even anything close to that amount? Don’t sweat it. The average is skewed upward by a small handful of people that have done exceedingly well. Rival fund company and retirement plan administrator Fidelity says its average balance for anyone that’s been saving money in a 401(k) account for a full 15 years now is an average of $586,1000 in their retirement accounts.
Conversely, Vanguard adds that the median 401(k) balance (the account at the exact value midpoint of all the 401(k) accounts it oversees) is a much smaller $35,537.
It’s not too late to map out the right plan
If your balance is smaller than the average or median number, don’t panic. You’ve got time to catch up. Besides, you may not need as much retirement savings as others do. On the flipside, just because you’re beating Vanguard’s numbers doesn’t inherently mean you’ll be able to afford the retirement you dream of in the future. Everyone’s plan is different.
Still, such comparisons help you get a handle on how well you could be doing.
More than anything, though, Fidelity’s anecdotal data about Generation X savers underscores the message that building a nice retirement nest egg largely depends on getting started early and letting time do the bulk of the work.
