Insights on Retirement Savings: The Average 401(k) Balance for Retirees Age 65 and Older

Average 401(k) Balance for Retirees

The data comes from mutual fund giant and retirement plan manager Vanguard. In its 2023 "How America Saves" report, Vanguard says the average balance for its work-based retirement accounts for clients age 65 and up currently stands at $232,710. Not bad.

Skewed Averages and Median Balances

There's an important footnote to add here, however. That is, the average is skewed upward by a small number of 401(k) millionaires. Vanguard goes on to point out the median retirement account balance -- the midpoint of Vanguard's data -- for this 65 and older cohort is a much more modest $70,620.

• This information could be either encouraging or discouraging, maybe even a little of both.
• Your retirement savings may be above the median figure or even better than the mathematical average.

Strategies for Retirement Saving

1. Save more money than the average to build a bigger nest egg.
2. Consider alternative investment options and retirement accounts like IRAs.
3. Delay retirement to allow your savings more time to grow.
4. Optimize your Social Security benefits by claiming at the right time.
5. Conduct thorough financial planning to ensure a secure retirement.

Focus on your specific situation and financial goals rather than comparing yourself to average figures.