Each year, Vanguard reports 401(k) statistics in its How America Saves report. In the 2024 edition, the firm found that the average 401(k) balance is $134,128. However, the average can vary dramatically by age group, and the average and median 401(k) balances are very different.
I won’t keep you in suspense. The average 401(k) balance for someone in the 35 to 44 age group is $91,281.
There are some things you should keep in mind. For one thing, this tells the average balance in Vanguard 401(k) accounts. It doesn’t account for other types of retirement savings clients may have, such as IRAs they’ve opened on their own. It also doesn’t account for people who have more than one 401(k), such as one in a former employer’s retirement plan.
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Also, the median account balance is significantly lower – just $35,537 for this age group. I don’t want this to turn into a math lesson, but the median means that half of all 401(k) account balances are greater than this amount, and half are smaller. When the average is far higher than the median, it means that larger accounts are making the average higher or a bunch of ultra-small 401(k) accounts (perhaps from ex-employees who only worked for a few years) are making the median low. Or both.
Is it enough?
Retirement planners generally suggest that you should aim to have at least three times your annual salary set aside by the time you’re 40. The average salary in this age group is about $67,600, so this would mean a target 401(k) balance of approximately $203,000 – roughly twice the average balance of this age group.
