The Blubber

If retirement is approaching, there are some critical steps to take to ensure you're financially prepared. Chief among these is confirming you've saved enough to live comfortably—or at least having a plan in place that lets you sleep soundly at night.

One way to get started is by comparing your savings to what others in similar situations have managed to set aside. Let’s examine the average 401(k) balances, particularly for those nearing or already in retirement.

The Average 401(k) Balance for Retirees Aged 65 and Older

As of the end of 2023, the average 401(k) balance across all age groups was $134,128. However, retirees aged 65 and older lead the pack, with an average balance of $272,588, according to a Vanguard analysis of nearly 5 million retirement accounts.

That said, averages can be misleading since a small number of big savers can skew the numbers upward. A better measure might be the median balance, which offers a more typical snapshot. For those 65 and older, the median 401(k) balance is just $88,488, meaning half of retirees in this age group have saved less than this amount.

401(k) Balances by Age Group

Here’s a breakdown of average and median 401(k) balances across various age groups:

Data source: Vanguard's "How America Saves 2024."

Whether you’re ahead or behind these averages, these figures can serve as a useful checkpoint. Remember, your 401(k) is just one piece of the puzzle. Be sure to account for other income sources, like IRAs, brokerage accounts, and Social Security. Then, evaluate your expenses to estimate how long your savings will last.

A Social Security Bonus You Might Be Overlooking

If you feel behind on retirement savings, you’re not alone. However, there are little-known strategies that could boost your Social Security benefits significantly. For instance, one approach could add as much as $22,924 annually to your retirement income. Learning how to maximize these benefits could give you greater confidence and peace of mind as you step into retirement.