Saving for retirement isn't easy, especially as costs continue to rise. Most older adults will need hundreds of thousands of dollars or more to retire comfortably, with some needing well over $1 million in total savings.
While everyone will have different savings goals, it can sometimes be helpful to see how your nest egg stacks up to others your age. Here's exactly how much the average U.S. adult age 65 and older has stashed in their 401(k), as well as how to calculate your own retirement goal.
Image source: Getty Images.
The average 401(k) balance among older adults
Those age 65 and older tend to have far more in savings than younger generations. However, the average 401(k) balance is still just $272,588, according to Vanguard's 2024 How America Saves report.
Because average figures tend to be skewed by outliers, though, the median could be a more realistic representation of the typical American. Among those age 65 and older, the median 401(k) balance among Vanguard participants is just $88,488.
No matter how your savings compare to the average or median, it's wise to calculate your own target to decide whether you're on track. To determine your retirement savings goals, you'll first need to consider how your expenses may change once you retire. Some people may find that their costs drop in retirement, while others spend far more on travel, hobbies, healthcare, or other expenses.
From there, determine whether you'll have any other income sources -- such as Social Security benefits or a pension. When you know how much of your income will come from other places, it will be easier to gauge how much you'll need to pull from savings. At that point, you can run your information through a retirement calculator for a specific savings target.
Comparing your nest egg to the average can be helpful to see where you stand. But by calculating your unique goal, you'll be able to more accurately tell whether you're on track to retire comfortably.
The $22,924 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.
View the "Social Security secrets" ›
The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
