Your retirement strategy is very personal, and it is not healthy to compare yourself against others as a form of competition or giving yourself a standard. However, knowing the average 401(k) balance for people in your age group can help you get a feeling for how you are on your path toward reaching your retirement goals. Here are the average percentages saved and the average balances according to Fidelity.com:
Average 401(k) balance by age
- 20 – 29 — Those in their 20s contribute an average of 7% of their income to their 401(k) accounts with an average balance of $10,500.
- 30 – 39 — Those in their 30s contribute an average of 8% of their income to their 401(k) accounts with an average balance of $38,400.
- 40 – 49 — Those in their 40s contribute an average of 8% of their income to their 401(k) accounts with an average balance of $93,400.
- 50 – 59 — Those in their 50s contribute an average of 10% of their income to their 401(k) accounts with an average balance of $160,000.
- 60 – 69 — Those in their 60s contribute an average of 11% of their income to their 401(k) accounts with an average balance of $182,100.
- 70 – 79 — Those in their 70s contribute an average of 12% of their income to their 401(k) accounts with an average balance of $171,400.
Reaching your retirement goals
Are your savings well below the average for your age group? Do not worry about it. Your savings might be perfect for how much you can afford to contribute and the goals you are trying to reach. You may be able to adjust your strategy to contribute more and catch up closer to the average of your age group if this is more in line with your goals.
It is best to work with a financial advisor who can help you make strategy decisions for reaching your savings goals without breaking the bank right now.
Talk to a ProVise CFP® professional about what to do with your retirement savings
Are you struggling to determine how much to save for your retirement? A financial professional can act as your guide on your financial road map to help you reach your goals without running yourself dry.
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about planning for your retirement? Contact ProVise today to schedule a complimentary consultation.