The Average American's 401(k) Balance May Surprise You. Here's How to Beat It.

Group 1 - The National Institute on Retirement Security reported that 79% of Americans feel there is a broad retirement crisis, with 55% worried about achieving financial security post-career [1] - A significant reason for the bleak outlook on retirement is the lack of savings, exacerbated by ongoing inflation affecting workers' ability to set aside money in retirement accounts [2][3] - Social Security is projected to replace about 40% of pre-retirement earnings for average wage earners, but most retirees require about twice that amount to maintain their standard of living, highlighting the importance of personal savings [3] Group 2 - Vanguard's 2024 data indicates that the average 401(k) balance among savers of all ages is $148,153, while the median balance is significantly lower at $38,176, suggesting a disparity in savings [5][8] - The median balance of $38,176 is considered a more representative figure of what Americans have saved for retirement, as the average is skewed by higher earners with large 401(k) balances [6][8] - The typical American has less than $40,000 saved for retirement in a 401(k), emphasizing the need for strategic spending and maximizing retirement contributions [7]