This is the average 401(k) balance for ages 55 to 64

A robust nest egg is essential to a financially secure retirement. With the cost of living steadily rising, Social Security continuing to struggle, and few workers having access to other sources of income such as pensions, most older adults will have to rely heavily on their personal savings.

But determining how much to save can be difficult. Everyone’s situation is different, and goals can vary greatly depending on factors such as your age, where you live, and your expectations for retirement.

Comparing your pension fund to other people’s ages isn’t necessarily the best way to gauge whether you’re on track, but it can be useful to see how you stack up to the average. Here’s what the average 401(k) balance looks like among those ages 55 to 64, as well as a simple trick to saving more.

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How do your savings compare?

Each year, Vanguard releases the How America Saves report to provide insight into workers’ retirement goals and overall financial health. Its 2024 report found the average 401(k) balance among Vanguard account holders ages 55 to 64 is $244,750. The median figure (which may be more accurate because it accounts for extreme outliers) is just $87,571 for this age group.

Again, individual savings goals will vary. There’s a good chance you’ll need to save more than you think, though. So if you have a few years left until retirement, now is the time to supercharge your savings.

One way to do this is to take full advantage of employer matching contributions if you have access to this benefit. The employer match is essentially free money, and by contributing enough to earn the full match, you can increase your savings by thousands of dollars a year with almost no effort.

Saving for retirement is hard, but small steps can go a long way. By determining your unique retirement goals and saving even a little more now, you can enjoy a much more comfortable retirement.