2 hours ago
“A seven-figure 401(k) balance is the EXCEPTION, not the rule.” We all know that averages can be skewed by a few high outliers in the mix. Here are the average and median 401(k) balances sorted out by age groups in the link I provided:
Average 401(k) balance: 11,800
Median 401(k) balance: 4,300
Average 401(k) balance: 42,400
Median 401(k) balance: 16,500
Average 401(k) balance: 102,700
Median 401(k) balance: 36,000
Average 401(k) balance: 174,100
Median 401(k) balance: 60,900 (Coming up on retirement here pretty quick now, getting scared yet?!?!) Ages 60-69
Average 401(k) balance: 195,500
Median 401(k) balance: 62,000
When a 1 million dollar 401k only provides a $35k retirement, how can we expect to retire off of these averages, let alone the median amount? You might be asking where I got that amount from. Look up the “4% rule in retirement” and the taxes due on that same 4%. You’ll see the math come together.
As for the averages and the medians, here’s the article I came across that pointed those figures out. My mission/purpose in life is to help people retire the way they want to without having to work harder and harder for it. If this is something you’d like to know more about, send me a message and we will chat. Talk soon!
https:www.nerdwallet.com/article/investing/the-average-401k-balance-by-age (Bankrate.com is pictured as well Incase you wanted a second source cited on those numbers 😉) retirement retirementplanning retirementplan retirementplans financialfreedom financialindependence financialplanning independentwoman independentwomen financialstrength financialsuccess exponentialgrowth retirementliving retirementlife earlyretirement