Title: The Typical 401(k) Savings for Individuals Aged 35 to 44
Every year, Vanguard's comprehensive report, titled "How America Saves," discloses 401(k) statistics. The 2024 edition revealed some intriguing figures, with the average 401(k) balance standing at a steady $134,128. However, it's essential to remember that this figure can significantly fluctuate depending on various age groups.
Let's delve into the specifics of the 35 to 44 age group, which boasts an average 401(k) balance of $91,281. This figure highlights the typical balance in Vanguard 401(k) accounts for individuals within this age bracket.
It's crucial to note that this figure does not account for other retirement savings methods, such as IRAs individuals may have established independently or multiple 401(k) accounts from previous employers. Additionally, the aforementioned statistic solely reflects the average balance, while the median balance, which signifies the point where half of the 401(k) account balances are higher and half are lower, stands at a significantly lower figure of $35,537.
Comparative Analysis
Comparing the average and median balances reveals striking disparities. The discrepancy between the two figures signifies an uneven distribution of wealth, with some individuals holding substantial accounts, while others maintain relatively modest balances.
Vanguard's report further breaks down the average and median 401(k) balances by age group, painting a more comprehensive picture of personal savings habits across America:
- Individuals under 25 have an average balance of $7,351 and a median balance of $2,816.
- Between 25 and 34, the average balance climbs to $37,557, with a median balance of $14,933.
- The 45 to 54 age group boasts an average balance of $168,646, while its median falls at $60,763.
- Individuals 55 to 64 witness an average balance of $244,750, with a median balance of $87,571.
- Ultimately, those aged 65 and up maintain an average balance of $272,588 and a median balance of $88,488.
These figures, based on data from the 2024 report, provide a valuable window into retirement savings trends across America.
During retirement, having sufficient money is paramount for financial security. However, the amount of money one has in retirement can greatly vary, as demonstrated by the discrepancy between the average and median 401(k) balances at retirement age.
In light of Vanguard's report, individuals around the age of retirement have an average 401(k) balance of $272,588, yet the median balance for this age group is somewhat lower at $88,488, indicating a distribution of wealth among retirees.
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