What is the average 401(k) balance?

Average 401 (k) balances hit a record high; here’s the average 401 (k) balance by generation and age as of June 30, 2024, according to Fidelity Investment’s “ Building Financial Futures ” report, which is based on the 24 million 401 (k) accounts it manages. (Note: the average 401 (k) balance was $127,100.) There's good news in this latest report.

What does the average 401(k) balance by age mean?

“What the (average 401 (k) balances by age) tells us is investors are not saving enough to afford a comfortable retirement,” said Anthony Ogorek, president and founder of Ogorek Wealth Management. Let’s also look at average 401 (k) balances by age band, which shows how much account holders have saved during each decade of their life.

How much money does a 401(k) make a year?

Many U.S. workers retire by the time they reach 65. Vanguard's data shows the average 401 (k) balance for workers 65 and older to be $232,710, while the median balance is $70,620. For retirees following the 4% rule, the average balance would produce just $9,300 in annual retirement income, while the median would provide only around $2,800.