This Is the Average 401(k) Balance for Retirees Age 65 and Older

Everyone wants to save enough for retirement. But how do you know that you've saved enough? One helpful metric is to simply see how much others have shared at your age. While this doesn't guarantee you'll have enough for your own needs, it is helpful in gauging you relative saving success.

For Americans aged 65 and above, the average 401(k) portfolio is worth roughly $299,400. But this number can be highly misleading. The figure below is actually a far better way to understand how much the everyday American has saved in their 401(k) by age 65.

Image source: Getty Images.

Average 401(k) values are misleading -- use this metric instead

It's true: The average American aged 65 and up has nearly $300,000 in their 401(k). But the term "average" can be misleading. That's because a few high earners -- like a handful of people with $10 million 401(k) portfolios averaged into a few hundred people with balances of less than $10,000 -- can skew the figures. A much better metric is the median 401(k) portfolio value.

According to data compiled by Nerd Wallet, the median 401(k) value for an American aged 65 or older is closer to $95,400. That's a difference of more than $200,000. This median number essentially throws out huge outliers in both directions, giving us a far better idea of what the everyday American has saved.

Of course, you may still need far more than these sums to comfortably retire. But don't be dismayed if you're falling far below reported averages. Median figures, as we've seen, are a much more realistic number for comparison.

The Motley Fool has a disclosure policy.