This video discusses the average 401k balance by age 65, both by mean and median. It also discusses the number of 401k millionaires in the United States.
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Interesting, it would seem most Americans might be a world of hurt going into retirement. Most of my retirement assets are not tied to just 401k, but IRA and Roth IRA. Not having any CC and loan debts, going into retirements is mostly expenses are tied the usual living expenses like food, utility, medical, property taxes, etc.
I’m a dividend investor, my wife and I have invested in the s&p500, both through my TSP with the government and through fidelity in her 401-k. Cashed out 370k from the S&P and invested with a full service broker.. Until about 3years ago we were 100% in the s&p after over 30 years. I’m retiring at the end of the month at 59, while my wife will retire next year at 54. We currently have 5.7 million in our tex deferred savings.
I have to say Holy Schmidt! $64K at age 65 is way too low! How do you live on that kind of saving?
Feel like I need a soft fluffy pillow and some chamomile tea. ZZzzzzzzzz
I have been downsized in my 50's, so saving for retirement is impossible. I have saved really good until this point, so I am going to have to finish the game with what I have left!
I'm 50 with 600k after this downturn. I focused on paying my house off, probably dumb but it makes me feel better knowing that I own it. It is a small house but on a lake. I'll keep putting your lights on for you until I'm 60……then I'm out. Peace!
I find these numbers pretty unimportant. I'm 65. I have around the average you mentioned in my 401k. $259k. But that's from my 6 years in my present job only. The wife has her 401k, we both have IRAs that are far larger than the 401k balances and then there's the Roths and taxable accounts. A much more thorough analysis would be to take total investment balances and then work with them. I have to think that the low end of 401k balances in Vanguard will include people who just started their job with that Vanguard 401k. Joe Worker might only have $12k in their 401k but look over there. They have a Schwab IRA rollover account with $4M sitting in it.
The only one you're racing against w/ your 401(k) is you: don't focus on where someone else is on their journey to their retirement, focus on where you are & how you can get to where you want to be from here…
You don't have to be wealthy to save. My grandparents (born 1895) saved enough to put me thru college $5-10 at a time in a passbook savings account. They never did get the interest rates that we've seen the last 50 years. What they did do was set it back and NEVER touch it. That's how it begins – put it in the bank or an investment account and Don't Spend It.
Retired at 59 with only military penssion,VA 100%, SSDI and a 2 rental property that is paid for that is our income for life and the wife collecting SS and 401K that we don't even touch. I think we did good. Thanks God.
It means absolutely nothing. With career mobility these days and rollover IRAs having many more investment options, it makes more sense to move out of a 401k whenever possible.
I'll bet that with the current turbulence in the stock market a lot of people look at their 401ks one day and go, "I'm a millionaire!!" Then they look the next day and go, "I'm not a millionaire!" Then the next it's, "I'm a millionaire!!" again!. Over and over!!
I hope that you're able to do this yearly. Also, is this only Vanguard funds? Or is it all 401K funds? Does it include IRAs? Does it include the TSP?
My wife and I have had many different jobs over the years and we have 10 separate 401K or IRA accounts. We don't have any one account that has close to a million dollars. We have been working on getting them consolidated, but it takes a tremendous amount of effort.
Been saving at Vanguard for 3 decades will retire in 2 years, AT 62 with $ 1.8 – $ 2MILLION.
Does it include the 401k Roth IRA?
I didn't start saving for my retirement until I was 35 and will be a millionaire well before I retire, I am 54 now. My best year to date I made $65,000.
Sad
53, $1.2M
Thanks for the video
The median is not the value of the 2.5 millionth account out of 5 million accounts. It is the value where half the accounts are lower and half the accounts are higher than that value. I think you know but your explanation was not accurate.
I'm 60 years old and I got approximately 600k. But I won't rely on my 401k. I also got rental property. A large savings and of course Social Security
I have 500,000.00 in savings and I’m 64?
I will get 600 a month in social security in three years?
Is that enough!!
Great video. I’m all for the 401k. Investing heavily in it. However, I’m 41 and plan on retiring on my cash accounts and E*Trade stock account. Not relying on SS or 401k. I should be retired many many years before SS age. The goal is our 1M house paid for and 1M cash equivalents. The 401k and SS will be icing on the cake. Should be done by 46-47.
Thanks for the awesome video. I don't understand how much you generally are supposed to take out each month from your 401K when you retire. Let's say you have $300,000 – how much should you take out each month? I would assume it tough to determine the correct amount. You don't want to take too much where your money is gone in ten years. But at the same time, I want to enjoy that money and don't want to be 90 and still have 300K and not use it. Does that make sense?
Forcing employees to gamble their retirement (401K, IRA) on stock market is criminal. It is manipulated and rigged. Just when you think you are making gains, something will happen in the world to set you back where you started from, or even further back. So called financial advisors and money managing companies are in it for themselves, taking chances with YOUR money. Read the fine print: "All investing involves a risk of losing money".
I'm 550000 at age 42
Does it include IRA’s from previous employers that have been rolled over?
Asking this toward the beginning of the video so maybe you will answer it
I love this channel and all of your videos. I find them very informative and helpful.
Hmm, interesting but raises another question. What is the future value, more specifically the retirement value of these 401k? $65k in a 401k of a40 year old, is much different than the same amount for a 62 year old. So a better benchmark is the value of 401ks by age.
As Americans change job frequently, do we know on average, how many retirement accounts a 401K saver has?
The market has become most even more difficult to predict because of Russia attacking Ukraine, no one expected Russia would actually attack, wealth is shifting and inflation is rampaging every sector but the smart ones know that it is best to put your future with a trusted professional to secure and even grow the value of your asset and that's why I am stuck with Suzanne Stephens Ellis, I have experienced amazing growth in my Portfolio since I joined her platform in March 2020 and she keeps giving me great returns.
Amazing people make it to 65 years old with numbers like these. Financial education needs to be taught in school. Sad!!
I am 41 and have 160k in pension savings. Started at age 34 and for the past few years been putting away 35% of gross income. But i have twice that in mortage debt for my 2nd home, the first home is paid off. Now i will pay less into pension and reduce debt. I won’t hit the magical 1m but probably have 2 homes paid off and will not have to pay tax on the pension income in retirement. Am I doing it right?
The best way to find that balance between saving and living is by investing.. Anyone who intend on achieving financial freedom and early retirement should take good advantage of the stock market.
I have been putting 20 percent in my 401k for the last 20 years. The key is to live modestly, as if you never had the extra money. I retired at 62, and do not have to worry about money in retirement. The problem younger generation. has is job security and home values.
All the while we watch this present administration destroy the value of the dollar.
Am I the only one that feels like he’s running on a hamster wheel?
I feel better now. My wife was the primary wage earner and we have no 401k but cash savings of about $333k, some would say stupidly in a savings account and share certificate. No debt and own our condo. No kids. We have always sacrificed and watched pennies (mainly me). She earned it and I managed it. I think she appreciates it now, not so much in our younger years. BTW we had virtually NO nest egg as recently as early 2006. And we were never high income. We are just VERY consistent and patient. We also take modest vacations, lived a year in an apartment across town while also carrying the condo, and have bought a new car since then. Also have purchased some expensive items along the way so I don't feel we sacrifice THAT much. Just goes to show what some consistency can do in the long term. We also live healthy lifestyles.
Retired at 56 with $1.2M in 401k, and with a good pension. I thought I was a little better than average. Nice to know that I'm doing great compared to everybody else. Also, I'm planning on taking SS at 62. I figured the break-even with yearly increases and earnings is about 22 years. I'll probably live longer than that (family history and taking good care of myself), but you never know. So, a bird in the hand, and such!
Wouldn't the median value be a better number?
You want a nice retirement? Save until it hurts, and then save a little more.
Wow. Thank God you're not a preacher. You have a voice that could put a meth-head to sleep. It's very soothing and just makes everything feel so peaceful.
Okay. Voice aside, thank you for sharing this excellent video with lots of great information! I have subscribed so that I can see more content. Excellent.
This is a question I haven't seen answered on SS vid's. My husband is able to retire early. Plans to at age 55. He was a gov employee his whole career. We were wondering if we could pay self employment on our little side business (we ran it as a hobby but plan on turning it into a business when he has more time to devote to it) would his SS continue to grow and wouldn't take the hit by retiring early. He'd take it at full retirement age.
I think there are some major issue with the numbers, the average person working till 65 probably has 2-3 401k accounts, so Vanguard looking at a single 401k account for the person isn't even close to the full picture
58 yr old ex-girlfriend has $0 401k/Roth, $65k NY state pension, and will get $23k SS at 62. So, in 3 years she will making $88k a yr with no 401k or Roth. Some people without a 401k or Roth will be doing just fine.
I only have 35k at age 32, i only make 40k a year raising a family of 5.
something that you alluded to but I think might be kind of deceptive with the vanguard number is… many people I've talked to about this have more than one 401k account after years of changing jobs and not moving assets to one account. this certainly occurs at the end of ones working career when you hold one account not associated with an employer and another with your current employer. i personally have my 401k savings split almost in half between accounts.
Thank you Schmidty