This Is the Average 401(k) Balance for Ages 45 to 54

Group 1 - The average American aged 45 to 54 has a 401(k) balance of $188,643, but the median balance is significantly lower at $67,796, indicating that many individuals in this age group are underprepared for retirement savings [4][5]. - The disparity between the average and median 401(k) balances suggests that the typical American in their mid-40s to mid-50s has much less saved for retirement than the average figure might imply [5]. - For a 54-year-old with a median 401(k) balance of $67,796, saving $300 a month until age 67 could result in a total balance of approximately $262,000, which would yield an annual retirement income of about $10,480 using the 4% rule [6]. Group 2 - The typical retired worker on Social Security receives just over $2,000 a month, meaning that combined with the estimated retirement income from savings, the total monthly income would be under $2,900, which may not be sufficient for a comfortable retirement [7]. - Data indicates that individuals in their mid-40s to mid-50s generally do not have substantial savings in their 401(k) plans, highlighting the need for immediate action to improve retirement savings [8]. - Adjusting spending habits and leveraging opportunities in the gig economy could significantly enhance 401(k) balances for those who feel behind in their retirement savings [8].