I remember when I was a kid and someone else’s parent bragged about how well their kid was doing. As a child and parent, I will attest that no one whose parents bragged they were a genius, was an actual genius. In addition, if you think things you have are bad, some people have it worse than you.
In 2024, Vanguard said the average balance for its 401(k) between the ages of 45 and 54 was $168,646. Fidelity’s figure for plans they do administrative work for was $192,200 for the 45-to-60 crowd. While Fidelity participants have more money than Vanguard participants, the numbers are awful. What is scarier is that the median 401(k) account balance for all 45-to-54-year-old participants in Vanguard’s retirement plans is just $60,763. This means that half of the plan participants in this age bracket have less than $60,763.
60 isn’t that far in retirement and if you just have an average balance, you have almost nothing for retirement.
