Retirement Milestone: The 401(k) Balance That Puts 65-Year-Olds Ahead of the Pack
Key Points
A 401(k) is a valuable tool for building retirement savings and, for many, their largest investment account.
The average 401(k) balance differs greatly from the median balance.
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It is very hard to avoid comparing yourself to others, even though it can be harmful emotionally. And one of the biggest yardsticks in the world is wealth. Which is why it is relevant that the average 65-year-old has roughly $300,000 in their 401(k), according to Vanguard's How America Saves 2025 report. But that number needs some explanation.
Some more 401(k) numbers and ages
To lay out the full picture, those under 25 have an average of around $7,000 in their 401(k) accounts at Vanguard. The 25 to 34-year-old age group has nearly $43,000. The 35 to 44-year-old age group has $104,000. The 45 to 55-year-old age group has just shy of $190,000. The 55 to 64-year-old age group has just over $270,000. And, as already noted, the 65-and-over age group has roughly $300,000. If you are shooting to be better than average with your 401(k) balance, those are the numbers you need to target.
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But they don't tell the whole story. An average adds up all the accounts and then divides by the total number of accounts. It mixes in those who have been financially blessed with those who have faced greater struggles. Which is why the median is an important number to consider, as it is the middle point of the range, with half of the people above the figure and half below. The median 401(k) balances are as follows: Under 25, $2,000; 25-34, $16,000; 35-44, about $40,000; 45-54, roughly $68,000; 55-64, about $96,000; and 65 and over, $95,000.
Those are much lower numbers because they avoid the skew of high-value accounts. If you are above the lower median figures, you are ahead of the pack. If you are nearing, hitting, or beating the average figures, you are well ahead of the pack.
A better target is a personal one
All of that said, what you should really focus on is your personal situation. This is where the rule of thumb of having saved 10x your salary by age 67 comes in. If you can hit that number, regardless of whether it is above or below the average or the median, you are doing OK on the savings front. In the end, a personal goal like that is likely to be better than trying to peg yourself to how others are saving.
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