This is the average 401(k) balance for ages 45 to 54

Determining how much you need to save in a 401(k) in your late 40s and early 50s can be difficult because so many factors come into play. However, comparing your 401(k) balance to that of others in your age group can help you see how you stack up against your peers. Plus, it might motivate you to stash away extra money for increase your savings.

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What is the average 401(k) balance for 45-54 year olds?

The average 401(k) balance for those ages 45 to 54 is $168,646 at the end of 2023. That’s according to Vanguard’s How America Saves 2024 report, which dives into the savings habits of nearly 5 million holders of accounts.

Data source: How America Saves 2024, Vanguard.

Truth be told, it might be surprising that the average 401(k) balance for those 45 to 54 tops the six-figure mark. But there’s a caveat: 401(k) accounts with a lot of money in them can inflate the average. A more significant number to watch is the median balance (middle value), which is $60,763. Basically, the median shows that half of 401(k) participants have more than $60,763 saved, while the other half have less.

Comparing your 401(k) balance to others can be helpful, but don’t get caught up in what everyone else is doing. Even if you’re ahead of the average for your age group, that doesn’t necessarily mean you’re about to crush your retirement goals. Your best bet is to use these numbers as motivation to think about your own goals and take steps to support those goals before retirement begins.