Vanguard data shows most workers hold far less in retirement savings than the average balance suggests due to high-net-worth outliers.
The median 401(k) balance stands at $38,176, reflecting the typical worker’s savings, while the average balance of $148,153 is inflated by a small group of high-balance accounts. The disparity highlights wealth concentration in retirement savings, with a few long-tenured, high-income savers driving the mean upward.
Balances rise sharply with age, from $7,300 for workers in their early 20s to $246,500 for those aged 60 to 64. Most participants contribute below Fidelity’s recommended 15% savings rate, with the median deferral at just 6.8%. The data covers 5 million defined contribution participants across over 1,400 plans.
Vanguard’s figures show the average balance climbed from $129,157 in 2020 to $148,153 in 2023, though it dipped to $112,572 in 2022. The median, however, remains a more accurate measure of typical retirement savings.