Is Your 401(k) Balance Above Average? Find out if you beat most savers

We all know that comparing ourselves to others can be a slippery slope, but when it comes to saving for retirement, it’s hard not to ask: Am I doing better or worse than the average saver? Checking where your 401(k) balance is can give you some perspective, but remember—retirement is its own journey, and no two paths are the same.

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What is the average 401(k) balance?

According to Fidelity, the average 401(k) balance in their accounts is $28,900 at the start of 2024.

On the other hand, the average balance is much higher at $125,900. Before you start celebrating – or panicking – remember that averages can be skewed by those with particularly high or low balances.

The difference between the median and the mean is simple: the median shows the average saver, while a few million-dollar accounts might raise the average. So if you’re somewhere in between those numbers, you’re probably in line with many other savers.

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Here’s a breakdown by age, as reported by CNBC:

Fidelity reports that the median 401(k) balance for people over 65 is $88,488, while the median is $272,588.

If you’re behind these numbers, don’t sweat it too much – you still have time to catch up.

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How to boost your retirement savings

Saving for retirement is not a sprint; it’s more of a marathon. Even if you’re not exactly where you’d like to be, there are steps you can take to grow your savings and feel more secure about your future.

1. Automate contributions

The easiest way to make sure you’re consistently saving is to automate it. Set up direct contributions from your paycheck to your retirement account. That way, you won’t even have to think about it. Automation helps you meet your retirement savings goals by making saving part of your regular routine.

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2. Increase your contributions

Try to increase it annually as you feel comfortable with your current contribution rate. Even a small 1% increase can make a big difference over time. Automatic growth in contributions ensures your savings rate grows with your income without manual adjustments.

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3. Max Out employer matching

If your company offers a 401(k) match, make sure you contribute enough to get the full benefit. That’s free money – essentially a 100% return on the portion your employer matches. It’s one of the best ways to boost your retirement savings.

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What to avoid: Taking too many risks

It might be tempting to chase big returns by investing in high-risk investments, but this strategy can backfire. Retirement savings are best handled with patience.

Whether your balance is above or below average, it’s important to keep your financial goals in mind. Saving for retirement isn’t a competition, it’s about making sure you’re prepared for the lifestyle you want.

It might be worth talking to a financial advisor if you’re not quite where you want to be with your savings, or you just want to make sure you’re on track.

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Is Your 401(k) Balance Above Average? Find Out If You Beat Most Savers originally appeared on Benzinga.com

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