This Was the Average 401(k) Balance Last Year, According to a Recent Vanguard Report. Do Your Savings Stack Up?
Investing in a 401(k) is an incredibly powerful way to save for retirement.
While everyone's savings goals are different, it can be helpful to see how your account balance compares to the average.
If you're falling behind, there's one simple way to potentially boost your savings by hundreds of thousands of dollars.
The $23,760 Social Security bonus most retirees completely overlook ›
If you have access to a 401(k) and are regularly contributing, you're already ahead of the game when it comes to retirement planning. A 401(k) is one of the most powerful retirement tools out there, and it can help supercharge your savings.
When planning for retirement, everyone's journey will be different. Your savings goals will depend on many factors, such as the cost of living in your area, the number of years you expect to spend in retirement, and the type of lifestyle you want to enjoy. Your savings might look wildly different from others your age, and that's OK.
That said, it can sometimes be helpful to see what the average American has stashed in their retirement fund. Here's what the most recent data from Vanguard shows, as well as one simple way to increase your savings.
The average 401(k) balance by age
Every year, Vanguard releases its "How America Saves" report detailing saving habits among Vanguard 401(k) participants. While these figures only account for Vanguard account holders -- not the general population -- they can be helpful to get an idea of where many Americans stand on savings.
The most recent report, released in 2025 and based on last year's data, reveals that the average 401(k) balance among all Vanguard participants is $148,153. The median, though, is just $38,176. Because extremely high-earning outliers may skew the average, the median is often a more accurate representation of the typical person.
Broken down by age range, though, the average and median figures differ substantially from the overall average:
Age Range
Average 401(k) Balance
Median 401(k) Balance
Under 25
$6,899
$1,948
25 to 34
$42,640
$16,255
35 to 44
$103,552
$39,958
45 to 54
$188,643
$67,796
55 to 64
$271,320
$95,642
65 and older
$299,442
$95,425
Data source: Vanguard.
Again, your individual savings goals will depend on your situation. So if your 401(k) balance doesn't match up with the average American's, that doesn't necessarily mean you're off track.
Rather than relying solely on comparing your balance to the average, it's wise to talk to a retirement planning expert or run your information through a retirement calculator for a savings estimate. These tools can give you a rough idea of how much you should aim to save based on your unique situation.
The simplest way to boost your 401(k) savings
One of the best ways to save more in your 401(k) is to take full advantage of the employer match, if your plan offers one. A whopping 86% of Vanguard 401(k) plans offer some type of matching contributions, according to the report, which could boost your savings by thousands of dollars per year with practically zero effort on your part.
For example, the median annual income among U.S. workers in 2024 was around $60,000 per year, according to the Bureau of Labor Statistics. Say you're earning $60,000 per year and your employer will match 100% of your contributions up to 3% of your salary -- or $1,800 per year.
Let's also say that, right now, you're only contributing $1,500 per year while earning the same amount in matching contributions. If you're earning an 8% average annual return on your investments, here's approximately how much more you could earn by increasing your savings to $1,800 per year and earning the full match:
Number of Years
Total Savings: Investing $1,500 per Year + $1,500 Company Match
Total Savings: Investing $1,800 per Year + $1,800 Company Match
20
$137,000
$165,000
25
$219,000
$263,000
30
$340,000
$408,000
35
$517,000
$620,000
40
$777,000
$933,000
Data source: author's calculations via investor.gov.
In other words, contributing just $300 more per year -- or $25 per month -- to earn the full employer match could increase your total savings by more than $150,000 over a career. The company match is essentially free money, and taking full advantage of it can transform your retirement savings.
Investing in your 401(k) is one of the most effective ways to save for retirement, and no matter how your balance compares to others, small steps can go a long way. By contributing consistently and taking advantage of perks like the company match, you can boost your savings by hundreds of thousands of dollars over time.
The $23,760 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 could help ensure a boost in your retirement income.
One easy trick could pay you as much as $23,760 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. Join Stock Advisor to learn more about these strategies.The Motley Fool has a disclosure policy.
This Was the Average 401(k) Balance Last Year, According to a Recent Vanguard Report. Do Your Savings Stack Up? was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
24 minutes ago
- Yahoo
Dreaming of a Middle-Class Retirement in the South? Here's What You Need To Save
It's a win-win for the middle class to consider retiring in the South. These states offer great weather, plenty of recreational activities and a relatively low cost of living for your retirement years. Even a modest savings goes a long way in funding 20 years of retirement. According to a recent GOBankingRates study, those retiring without Social Security benefits in Arkansas, Louisiana, Mississippi and West Virginia need anywhere from $270,000 to $338,000 saved up for a comfortable 20-year retirement lifestyle. See More: Read Next: See how much members of the middle-class need in savings to retire with and without Social Security benefits in the South. Alabama Middle-class income range: $41,351 to $124,054 Amount needed for 20-year retirement with Social Security: $364,868 Amount needed for 20-year retirement without Social Security: $827,027 Discover More: Explore Next: Arkansas Middle-class income range: $39,182 to $117,546 Amount needed for 20-year retirement with Social Security: $321,482 Amount needed for 20-year retirement without Social Security: $783,640 Learn More: Florida Middle-class income range: $47,807 to $143,422 Amount needed for 20-year retirement with Social Security: $493,988 Amount needed for 20-year retirement without Social Security: $956,147 Georgia Middle-class income range: $49,776 to $149,328 Amount needed for 20-year retirement with Social Security: $533,362 Amount needed for 20-year retirement without Social Security: $995,520 Kentucky Middle-class income range: $41,611 to $124,834 Amount needed for 20-year retirement with Social Security: $370,068 Amount needed for 20-year retirement without Social Security: $832,227 That's Interesting: Louisiana Middle-class income range: $40,015 to $120,046 Amount needed for 20-year retirement with Social Security: $338,148 Amount needed for 20-year retirement without Social Security: $800,307 Mississippi Middle-class income range: $36,610 to $109,830 Amount needed for 20-year retirement with Social Security: $270,042 Amount needed for 20-year retirement without Social Security: $732,200 North Carolina Middle-class income range: $46,603 to $139,808 Amount needed for 20-year retirement with Social Security: $469,895 Amount needed for 20-year retirement without Social Security: $932,053 For You: Oklahoma Middle-class income range: $42,402 to $127,206 Amount needed for 20-year retirement with Social Security: $385,882 Amount needed for 20-year retirement without Social Security: $848,040 South Carolina Middle-class income range: $44,545 to $133,636 Amount needed for 20-year retirement with Social Security: $428,748 Amount needed for 20-year retirement without Social Security: $890,907 Tennessee Middle-class income range: $44,731 to $134,194 Amount needed for 20-year retirement with Social Security: $432,468 Amount needed for 20-year retirement without Social Security: $894,627 View More: Texas Middle-class income range: $50,861 to $152,584 Amount needed for 20-year retirement with Social Security: $555,068 Amount needed for 20-year retirement without Social Security: $1,017,227 Virginia Middle-class income range: $60,649 to $181,948 Amount needed for 20-year retirement with Social Security: $750,828 Amount needed for 20-year retirement without Social Security: $1,212,987 West Virginia Middle-class income range: $38,611 to $115,834 Amount needed for 20-year retirement with Social Security: $310,068 Amount needed for 20-year retirement without Social Security: $772,227Methodology: Data was sourced from the U.S. Census American Community Survey, the Missouri Economic Research and Information Center, the Bureau of Labor Statistics Consumer Expenditure Survey, Zillow Home Value Index, Federal Reserve Economic Research. Middle-class income is defined by Pew Research Center as two-thirds to double the national median income. The minimum income needed to be middle class was calculated and the savings needed to retire was calculated. The average income for one person was sourced from the Social Security Administration for December 2024, and the retirement savings needed after Social Security benefits was calculated. All data was collected on and is up to date as of Jan. 24, 2025. More From GOBankingRates New Law Could Make Electricity Bills Skyrocket in These 4 States I'm an Economist: Here's When Tariff Price Hikes Will Start Hitting Your Wallet 5 Strategies High-Net-Worth Families Use To Build Generational Wealth 6 Hybrid Vehicles To Stay Away From in Retirement This article originally appeared on Dreaming of a Middle-Class Retirement in the South? Here's What You Need To Save
Business Insider
27 minutes ago
- Business Insider
Patriot missile production is surging, but the demand is insatiable
American defense companies are cranking out Patriot interceptors at a record-breaking pace, but demand is surging. Russian missiles are stressing Ukraine's Patriots, leaving it scrambling for more ammo. Iranian missiles have put batteries in the Middle East to the test. Western Europe is realizing it needs to revitalize its depleted air defenses, and the US is recognizing that key stocks are running low and need to be not just refilled, but dramatically expanded. Amid global conflicts and growing worries in the West about a major conflict against a peer-level adversary, air defense missiles are in huge demand. It has driven the companies making the launchers, missiles, seekers, and more, defense companies like Lockheed Martin, Raytheon, and Boeing, to ramp up their production, but the demand is also up. And in a high-end fight, it could skyrocket. Surging production is battling surging demand Patriot batteries are made up of radar and control systems, launcher stations, and interceptor missiles, which altogether make up what is considered to be one of the world's best air defense systems. The weapon can effectively detect and intercept ballistic missiles, cruise missiles, drones, and aircraft. Last year, the US Army awarded Lockheed Martin, which makes the Patriot's PAC-3 MSE interceptor missiles, a contract to bring annual output to 650. It sat at 350 only a few years ago. Interceptor production hit a record-breaking 500 last year, and Lockheed Martin is on track this year to produce more than 600 PAC-3 MSEs for the first time. The company said there would be a "significant increase" for 2027. Meanwhile, Boeing is surging PAC-3 missile seekers, critical components that enable the Patriot system to identify, track, and intercept threats, and Raytheon, which makes Patriot radars and launchers, is boosting PAC-2 interceptor missile production. The global annual production of Patriot missiles is estimated to be somewhere around 850 to 880 per year, according to Fabian Hoffman, an air defense and missile expert at the University of Oslo. That number could hit 1,130 by 2027. Russia, far from the only adversarial nation the West is worried about, is estimated to be producing roughly 840 to 1,020 of its 9M723 Iskander short-range ballistic missiles and the air-launched Kh-47M2 Kinzhal short- to medium-range ballistic missiles a year. Those weapons are only two missiles in a vast arsenal. That imbalance leaves the West with a concerning math problem. Air defenders tend to need to fire two or three interceptors to reliably take out one incoming threat, making things even more complicated. Patriot isn't the only air defense game in town, but it's a key capability that could be stressed without deep stockpiles. Brian Kubik, vice president of PAC-3 programs at Lockheed Martin Missiles and Fire Control, told Business Insider that "Lockheed Martin recognizes the critical need for PAC-3 MSE, and we're working closely with the US Army and suppliers to increase our production rate to meet the worldwide demand." "Our robust infrastructure and supply chain provide a strong foundation for increasing production," he explained, adding that the company is "taking proactive steps and making internal investments to help support our suppliers, accelerate delivery, and decrease production roadblocks." Raytheon told Business Insider that "it's more important than ever to co-produce, co-develop, and collaborate to get the best capabilities to the field quickly." It said it has entered into new partnerships to increase production, is increasing its staff, and has also committed nearly $1B to secure critical materials from suppliers and ramp manufacturing for Patriot radars. The company said that "by the end of 2025, Raytheon, along with our suppliers, will accelerate delivery times for Patriot radars by 25%." Patriot GEM-T interceptor production will increase by 150% by 2028, it added. Hoffman cautioned that even if the West's production of missile interceptors, like the Patriots, exceeds Russian conventional ballistic missile production, "this will not solve Europe's problems." And for the US, the threat isn't Russia alone. The Pentagon is eyeing China's growing ballistic missile arsenal and recognizing that it is going to need substantial air defenses. American allies in the Pacific realize that, too. And foes in the Middle East can't be dismissed. Patriots are used by European allies, as well as allies and partner nations in Asia and the Middle East. There are 19 operators worldwide, and that means a lot of competing demand, especially with some nations at war. The West's increased production is starting at a time when interceptor stockpiles appear to be running low in the West, putting extra pressure on production efforts. The challenge in fixing the problem is that the Patriot missiles and batteries take time to make, and in that time, immediate demands compete heavily with stockpiling needs for future fights. Thomas Laliberty, Raytheon's president of land and air defense systems, said last year that "it takes us 12 months to build a Patriot radar, but it takes us 24 months to get all the parts." Meeting global demand often means pulling from existing stockpiles, for both launchers and missiles alike. Strained stockpiles The Pentagon rejected a report from The Guardian last month that said that the US only has about 25% of the Patriot interceptors it needs. Pentagon spokesperson Lt. Col. Bryon McGarry told Business Insider that "the US military has what it needs to fight and win any mission, anywhere, anytime." At the beginning of last month, however, the Pentagon abruptly paused weapons shipments to Ukraine, including Patriot interceptors, amid concerns about US weapons stockpiles. The move was reportedly triggered by Elbridge Colby, the undersecretary of defense for policy and someone who has long been deeply vocal about insufficient US readiness for war with China. Trump reversed the decision on military aid but changed how weapons are being provided to Ukraine, putting cost and stockpile burdens on European allies while the US handles production. Prior to that back-and-forth, the president commented on the Patriots during a press conference, telling a Ukrainian journalist that while the US might be able to get additional systems to Ukraine, "they're very hard to get." "We need them too," Trump said in late June. Though the Pentagon rejected assertions that there is a problem, US officials have previously suggested that there is at least strain. US Navy Adm. Samuel Paparo, the head of US Indo-Pacific Command, said last year that the fighting in the Middle East and Ukraine was eating into the US stockpile, pulling assets away that would be needed in a fight in his priority theater. The admiral said that "to say otherwise would be dishonest." Gen. James Mingus, the vice chief of staff of the Army, said earlier this month that US Patriot battalions as "a very stressed force element." David Shank, a retired Army colonel and the former commandant of the Army Air Defense Artillery School at Fort Sill, Oklahoma, shared with The War Zone that the US was short on Patriot interceptors even in 2021, before Russia's full-scale invasion of Ukraine. The war, he explained, has exacerbated longstanding problems with missile stockpiles. There's a clear effort underway to expand US Army stocks as the service aims to quadruple its purchase of interceptors, from 3,376 to 13,773, with a substantial $1.3 billion investment in Patriot missiles, a move that reflects repeated calls from experts and officials for far deeper magazines. What conflicts are showing about the need for air defenses Recent conflicts, specifically the massive missile and drone attacks in Ukraine and in the Middle East, are driving the new demand and showing how critical air defenses are in modern warfare. Ukraine has used its Patriots to protect cities and military infrastructure and to shoot down a Russian aircraft, but it's always in search of more batteries and interceptors. Germany has agreed to provide more, but only on the condition that the US replaces them in six to eight months. There's not enough capacity in existing stocks to easily spare. That means greater demand on producers. NATO is becoming increasingly aware of the value of air defenses. Its secretary general, Mark Rutte, said increased defense spending — an alliance push to spend 5% of GDP on defense — would support a huge "fivefold increase in air defense capabilities." He said that the way Russia is fighting shows why these weapons need to be a top priority. "We see Russia's deadly terror from the skies over Ukraine every day, and we must be able to defend ourselves from such attacks," he said.
CNBC
27 minutes ago
- CNBC
Some concertgoers use buy now, pay later loans for tickets. Start a 'Beyoncé fund' instead, analyst says
Many Americans have become accustomed to breaking up big purchases with buy now, pay later loans — including tickets for concerts and other live events. Going to a live concert is not cheap: Tours of big-name artists including Taylor Swift, Beyoncé and Coldplay have in part spurred a rise in ticket prices for live events in recent years, a trend economists call "funflation." Admission fees to movies, theaters and concerts were up 3.9% in the 12 months through June, according to the latest Bureau of Labor Statistics figures. And while the Federal Trade Commission changed a rule in May to make ticket pricing more transparent, experts say the move won't make costs go down. More from Personal Finance:Senate introduces bill for tariff rebate checksFed holds interest rates steady: What that means for your moneyTrump's tariffs could soon bring higher food prices, analysis finds Almost a quarter, 23%, of respondents in a new survey by LendingTree said they have used buy now, pay later loans for concert or festival costs. Rates are higher among younger generations, with 37% of Generation Z and 35% of millennials saying they've used the loans for these purposes. The site defined Gen Z as adults ages 18 to 28, and millennials as those ages 29 to 44. To compare, 19% of Gen Xers, which the site defines as adults ages 45 to 60 — said they've used buy now, pay later loans for concerts, followed by 3% of baby boomers, those ages 61 to 79. LendingTree said it surveyed 2,050 adults in the U.S. in mid-June. Of those, 1,047 said they plan to attend a concert or festival in the summer or fall. It's not unusual to see Gen Zers and millennials leading the use of buy now, pay later loans, said Matt Schulz, chief credit analyst at LendingTree. Young Americans are most familiar with the form of payment, and their use of it for concerts and festivals speaks to the "time of life" they're in, he said. "Part of the reason why I ended up in credit card debt in my 20s was because I was going to concerts and seeing my favorite bands," Schulz said. If concerts and other live events are important to you, he said, work the expenses into your budget and create a savings fund specifically with them in mind. "Carve out money in your budget as your 'Beyoncé fund' or your 'Taylor Swift fund,'" Schulz said. If you do need to stretch out the cost of attending a concert, here's what to know about buy now, pay later loans versus credit cards. Buy now, pay later plans have certain advantages, but they might not offer the same protections as credit cards, especially if things go wrong with the concert or live event, experts say. The loans became a popular option because they allow consumers to spread the total cost over installment payments in a short time frame, often without interest, said Greg McBride, chief financial analyst at Bankrate. However, the form of payment has evolved to the point where not all buy now, pay later plans are "cut from the same mold," he said. Most plans consist of four installment payments, but others have longer repayment terms. Those may charge an annual percentage rate, or interest, of up to 36%, according to NerdWallet. Some plans also charge fees for late or rescheduled payments, which can cost up to $15 or even 25% of the purchase value, according to NerdWallet. Credit cards can be pricier than buy now, pay later, experts say, but they have other advantages. Like some buy now, pay later plans, credit cards charge late fees and interest on unpaid balances. While some cards offer new cardholders brief interest-free offers on purchases, the average credit card interest rate is just over 20%, according to Bankrate. But most cards typically offer purchase protections that you might not get from a buy now, pay later plan, said McBride. "Paying with a credit card can make it easier to get your money back if the concert gets canceled," he said. Some cards offer rewards such as cash back, points or miles on purchases. About 65% of those who plan to attend a concert or festival this year said they will use credit card rewards to help pay for their costs, according to LendingTree's report.
