This is the average 401(k) settlement for ages 55 to 64
superannuation planning is distinctive to each person, so your goals may differ from those of others your age. That said, it can sometimes be helpful to view where the average American stands when it comes to reserves.
Here’s what the average 401(k) settlement looks like for those closest to superannuation age, plus one straightforward way to save more.
The average American may have less in reserves than you ponder
Earlier this year, Vanguard released its 2024 How America Saves update, which provides a snapshot of the average American’s budgetary health. Included in the update were the average and median 401(k) balances among Vanguard superannuation account participants.
Among those aged 55 to 64, the average account settlement is $244,750. However, the median may paint a more accurate picture of the typical person’s reserves.
The average can be skewed by extremely high-earning individuals with millions saved for superannuation, while the median is the middle figure where half of the participants have more in reserves and half have less. According to the update, the median 401(k) settlement in this age throng is just $87,571.
The simplest trick for saving more
While $87,000 is still a well amount of money, it may not last more than a few years in superannuation for most people. If you’re falling behind on your reserves, one of the easiest ways to save more is to receive packed advantage of the business 401(k) match.
The most ordinary type of 401(k) match is 50% of a worker’s contributions up to 6% of his or her salary, according to the Vanguard update. That can instantly boost your reserves by thousands of dollars per year, and if you’re not contributing enough to earn the packed match, you’re leaving free money on the table.
Saving for superannuation is tough, but straightforward steps can make it a little easier. With the correct schedule, you could save more than you might ponder.
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The Motley Fool is a USA TODAY content associate offering budgetary information, analysis and commentary designed to assist people receive control of their budgetary lives. Its content is produced independently of USA TODAY.
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