The average 65-year-old holds a 401(k) balance of approximately $300,000, according to data from Vanguard’s 2025 report. That milestone figure places top savers ahead of the pack, but averages can distort the reality of retirement readiness due to high-value accounts skewing the data.
Vanguard 401(k) Balance Breakdown by Age Group
Retirement savings accumulate at different rates across various stages of a worker’s career. According to Vanguard’s findings, average 401(k) balances scale upward with age, though median figures reveal a more conservative financial baseline for the typical worker.
For savers under the age of 25, the average 401(k) balance sits at roughly $7,000, while the median balance drops to $2,000. Workers aged 25 to 34 boast an average of nearly $43,000 against a median of $16,000. In the 35 to 44 age bracket, balances rise to an average of $104,000 and a median of around $40,000.
Individuals aged 45 to 55 hold an average balance just shy of $190,000, with a median of roughly $68,000. Workers aged 55 to 64 record an average of just over $270,000 and a median of about $96,000. By age 65 and older, the average climbs to roughly $300,000, while the median balance for this cohort stands at $95,000.
Average Versus Median Retirement Savings
Relying solely on average figures can create a misleading picture of retirement preparedness. Because high-value accounts drive the average upward, the median—the midpoint of the range—is a more realistic view for savers.
When comparing the two metrics, the gap is wide. While the average 65-year-old hits the $300,000 mark, the median 65-year-old holds $95,000. Savers who exceed the median figures are positioned favorably, whereas those approaching or surpassing the average figures demonstrate an impressive savings trajectory.
Personalizing Retirement Targets Beyond Benchmarks
Comparing account balances to averages offers a general gauge of progress, but retirement planning requires a personalized approach. A common rule of thumb suggests aiming to save 10 times your salary by age 67.
Rather than chasing broad demographic averages, workers can utilize personalized targets to navigate their savings journey effectively. Establishing a goal tailored to specific financial situations ensures a realistic path toward financial security in retirement.
Related reading