Typical Americans don’t seem to be taken away from socks as much as they need or want.
We often want to know how we do it. For example, you may wonder how your 401(k) account balance compares to your age.
The table below shows the averages Median -401(k) Balances for many age groups:
Data Source: Empower your personal dashboard as of June 30, 2025.
What do these numbers mean?
These mean and median 401(k) balances tell us a lot. Remember what the median value of a number is – it is the middle number of a series of numbers arranged in order. So, if the series are 78, 101, 135, 204, and 712, the average of those numbers is 246, but the median is 135. It is important to remember that the average can be skewed with unusually high or low numbers.
So, while the average 401(k) balance is technically correct, it doesn’t really reflect the typical saver. The median number is more representative of the group.
On the other hand, even those larger average numbers may not be enough to retire, so I’m worried. A useful (but flawed) 4% rule helps you understand why.
It suggests that it will withdraw 4% of nest eggs in the first year of retirement and adjusts inflation in the following years. (By the way, there are other withdrawal strategies.) So, take 4% of the $568,040 nest eggs from the table, and withdraw about $22,720 in the first year of retirement.
As of July, the average annual Social Security benefits and couples, about $24,000, and your income is about $46,720. That’s clearly not enough for many people. If you are beginning to worry, consider delaying retirement for several years and/or delaying your Social Security claim. (For many people, the best strategy is to wait until you are 70 years old to bill.)
Motley Fools have a disclosure policy.
The Motley Fool is a partner at USA Today, providing financial news, analysis and commentary designed to help people control their financial lives. The content is produced independently of USA Today.
Most retirees with the $23,760 Social Security Bonus are completely overlooked
A miscellaneous fool’s offer: If you’re like most Americans, you’re a few years (or even more) behind your retirement savings. But it’s not well known “The Secret of Social Security”It will help you to ensure a boost in your retirement income.
One easy trick can pay you an additional $23,760…Every year! Once we learn how to maximize Social Security benefits, we can retire with confidence in the peace of mind we want. participateStock AdvisorFor more information about these strategies, see
See “Social Security Secrets”»
