Average 401k Balances for 40-59 years old
How does your balance compare?
401k savings are not looking too good for 40-59 year olds.
This is something you need to pay attention to as it shows far off the mark most people are in saving enough for retirement.
We're going to look at how much, or how little, is being saved and what the root cause is for many.
This is something you need to pay attention to as it shows far off the mark most people are in saving enough for retirement.
We're going to look at how much, or how little, is being saved and what the root cause is for many.
The reference article is found at:
What we read about 401k balances
The reference article was showing a breakdown of 401k balances by age group.
They got their numbers from Fidelity, which has over 16 million account holders.
They got the average balances, as well as the Mean balances. The Mean is the balance amount in the middle of the pack. The average is influenced by all accounts and can look higher because of the extremely high accounts held by millionaires in that age group
Here's what they showed for 40-49 and 50-59 year olds.
Ages 40-49
Average 401(k) balance: $102,700.
Median 401(k) balance: $36,000.
Ages 50-59
Average 401(k) balance: $174,100.
Median 401(k) balance: $60,900.
Now, the 50-59 group is at the age where they can use catch-up contributions as allowed by the IRS: Participants age 50 and older can contribute an extra $6,000 a year in 2019.
Helpful, but not a huge game changer for many, who cannot afford to make catch-up contributions anyway.
The reference article was showing a breakdown of 401k balances by age group.
They got their numbers from Fidelity, which has over 16 million account holders.
They got the average balances, as well as the Mean balances. The Mean is the balance amount in the middle of the pack. The average is influenced by all accounts and can look higher because of the extremely high accounts held by millionaires in that age group
Here's what they showed for 40-49 and 50-59 year olds.
Ages 40-49
Average 401(k) balance: $102,700.
Median 401(k) balance: $36,000.
Ages 50-59
Average 401(k) balance: $174,100.
Median 401(k) balance: $60,900.
Now, the 50-59 group is at the age where they can use catch-up contributions as allowed by the IRS: Participants age 50 and older can contribute an extra $6,000 a year in 2019.
Helpful, but not a huge game changer for many, who cannot afford to make catch-up contributions anyway.
What This Means For You
Now let's focus on the 50-59 year olds.
Many experts recommend around 1.5 million as the amount you need to retirement safely and comfortably.
You are going to have 20-30 years of living expenses in retirement to pay for. Plus many couples will incur $100-200k in non-covered medical expenses as they age. Now throw in the potential for other health, accident, of monetary emergencies in those 20-30 years and you have a potential to run out of money pretty quickly.
You have to pay taxes on the money you withdraw from your 401k too.
So if we use the high end of $174k in 401k savings, that isn't going to last very long.
Depending on your tax bracket, you may have to pull out $100k to bring home $75k a year. Think you'll be frugal and only have to pull out $50k to bring home $30-40k year?
That will last you a few years out of the 20-30 years you need to pay for. What's your plan to pay for the rest of your life, social security?
Now let's focus on the 50-59 year olds.
Many experts recommend around 1.5 million as the amount you need to retirement safely and comfortably.
You are going to have 20-30 years of living expenses in retirement to pay for. Plus many couples will incur $100-200k in non-covered medical expenses as they age. Now throw in the potential for other health, accident, of monetary emergencies in those 20-30 years and you have a potential to run out of money pretty quickly.
You have to pay taxes on the money you withdraw from your 401k too.
So if we use the high end of $174k in 401k savings, that isn't going to last very long.
Depending on your tax bracket, you may have to pull out $100k to bring home $75k a year. Think you'll be frugal and only have to pull out $50k to bring home $30-40k year?
That will last you a few years out of the 20-30 years you need to pay for. What's your plan to pay for the rest of your life, social security?
Why aren't we saving more?
Think about it. What holds you back from saving more?
You don't have the money to save more.
Where is the money you wish you were saving going?
It's going toward your mortgage and your debts, right?
Think about it. What holds you back from saving more?
You don't have the money to save more.
Where is the money you wish you were saving going?
It's going toward your mortgage and your debts, right?
What if...
What if you had already paid off your mortgage and all your other debts?
How much would you be putting away for the comfortable retirement you dream of?
Reality is we have mortgage payments and other debts which take up a lot of our cash flow and prevent us from saving enough for retirement.
At best today, it takes multiple strategies, financial tools, and solutions to pay for your living expenses today, get out of debt, and save for retirement all at the same time.
It's hard and this is why most American's are not saving enough. Many will have to put off their retirement by years and work far longer than they expected to.
We provide one of the financial solutions which could help you achieve your financial goals years faster.
Learn how you could get your mortgage and other debts paid off in around half the time it will take you now. We can show you how to accomplish this with guaranteed results.
Get your free savings analysis by clicking the button below. We'll show you how soon you could be completely debt free again and how much you could save in wasted interest.
You should be putting as much of your money toward building your future as possible. Let us show you how.
What if you had already paid off your mortgage and all your other debts?
How much would you be putting away for the comfortable retirement you dream of?
Reality is we have mortgage payments and other debts which take up a lot of our cash flow and prevent us from saving enough for retirement.
At best today, it takes multiple strategies, financial tools, and solutions to pay for your living expenses today, get out of debt, and save for retirement all at the same time.
It's hard and this is why most American's are not saving enough. Many will have to put off their retirement by years and work far longer than they expected to.
We provide one of the financial solutions which could help you achieve your financial goals years faster.
Learn how you could get your mortgage and other debts paid off in around half the time it will take you now. We can show you how to accomplish this with guaranteed results.
Get your free savings analysis by clicking the button below. We'll show you how soon you could be completely debt free again and how much you could save in wasted interest.
You should be putting as much of your money toward building your future as possible. Let us show you how.