Retirement Savings: Where Do You Stand?
Comparing ourselves to others can be a natural tendency, especially when it comes to retirement savings. But remember, your journey to financial freedom is unique, and no two paths are alike. So, how does your 401(k) balance stack up against the average?
According to recent data, the median 401(k) balance is around $28,900, while the average balance is significantly higher at $125,900. However, it’s essential to understand that averages can be skewed by extreme values. The median balance, on the other hand, provides a more accurate representation of the middle saver.
Breaking it down by age, we see:
* 20-somethings: Median $6,700 | Average $17,700
* 30-somethings: Median $22,100 | Average $56,200
* 40-somethings: Median $41,600 | Average $124,400
* 50-somethings: Median $64,300 | Average $212,400
* Those over 65: Median $88,488 | Average $272,588
If you’re not quite where you’d like to be, don’t worry – there’s still time to catch up. To boost your retirement savings, try automating your contributions, increasing them yearly, and taking advantage of employer matching. Avoid taking on too much risk and focus on steady, long-term growth.
Remember, retirement savings are about securing your desired lifestyle, not competing with others. Consider consulting a financial advisor to ensure you’re on track to meet your goals.
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