This Is the Average 401(k) Balance for Ages 55 to 64

Retirement planning is unique to each person, so your goals may differ from those of others your age. That said, it can sometimes be helpful to see where the average American stands when it comes to savings.

Here's what the average 401(k) balance looks like for those closest to retirement age, plus one simple way to save more.

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The average American may have less in savings than you think

Earlier this year, Vanguard released its 2024 How America Saves report, which provides a snapshot of the average American's financial health. Included in the report were the average and median 401(k) balances among Vanguard retirement account participants.

Among those aged 55 to 64, the average account balance is $244,750. However, the median may paint a more accurate picture of the typical person's savings.

The average can be skewed by extremely high-earning individuals with millions saved for retirement, while the median is the middle figure where half of the participants have more in savings and half have less. According to the report, the median 401(k) balance in this age group is just $87,571.

The simplest trick for saving more

While $87,000 is still a healthy amount of money, it may not last more than a few years in retirement for most people. If you're falling behind on your savings, one of the easiest ways to save more is to take full advantage of the company 401(k) match.

The most common type of 401(k) match is 50% of a worker's contributions up to 6% of his or her salary, according to the Vanguard report. That can instantly boost your savings by thousands of dollars per year, and if you're not contributing enough to earn the full match, you're leaving free money on the table.

Saving for retirement is tough, but simple steps can make it a little easier. With the right strategy, you could save more than you might think.

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