Wealthy outliers skew average 401(k) balances to $168,000, while median savings of $48,000 reveal most Americans’ shortfall.
The average 401(k) balance stands at $168,000, but the median balance of $48,000 better reflects most Americans’ retirement savings. Wealthy outliers with large balances distort the average, masking the reality for typical savers.
For workers aged 65 and older, the median 401(k) balance is $95,425, which would generate just $318 monthly under the 4% withdrawal rule. Only half of participants contribute the recommended 12 to 15 percent, limiting growth potential.
The gap between average and median balances underscores disparities in retirement readiness, with high earners driving up the mean while most savers hold far less.