When it comes to our retirement nest egg, we can’t help but wonder where we stand compared to our cohorts.
While Vanguard’s newly released “How America Saves” yearly report reveals that Americans’ 401(k) savings rates are at record highs — making up an average $148,153 balance and a median $38,176 balance, in 2024 — this is how Vanguard participants’ balances shake out by age group.
Average and median 401(k) balance by age
Below are the average and median account balances broken up by age groups, according to the Vanguard report. You’ll see that the averages are much higher than the median figures since averages are skewed by the few large balance accounts. For this reason, the median numbers give a better sense of what most people have actually saved.
| Age | 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 up | $299,442 | $95,425 |
Naturally, the older you get, the more money you likely have sitting in your 401(k); you’ve had more years to contribute to the fund and thus more money to grow over time. Once you hit retirement, though, your balance may start tapering off as you draw from your 401(k). We see this happen slightly in the median 401(k) balance column when going from the 55-to-64 age group ($95,642 median balance) to the 65+ age group ($95,425 median balance).
As you compare your 401(k) balance to others in your age group, keep in mind this general rule of thumb: Financial experts advise investing 15% of your income annually in a retirement account, and that includes any 401(k) employer match. As an example, if your company matches up to 6% of your salary and you contribute 6%, you’re already at a 12% savings rate — pretty close to the recommended 15%.
How to save for retirement without a 401(k)
Since 401(k)s are employer-sponsored retirement accounts, not everyone has access to one if their company doesn’t offer it. If this is you, make sure you have an IRA that you can contribute to for your nonworking years.
You can find an IRA through any big brokerage like Fidelity or Charles Schwab. Both traditional and Roth IRAs offer tax advantages and you open and manage the accounts entirely on your own. You can set up automated contributions into your IRA just like you can with a 401(k) to make saving for retirement seamless.
Fidelity Investments
-
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance for robo-advisor to start investing
-
Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over and this includes access to unlimited 1-on-1 coaching calls from a Fidelity advisor)
-
Bonus
-
Investment vehicles
Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®
-
Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
-
Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
Pros
- No commission fees for stock, ETF, options trades
- No transaction fees for over 3,400 mutual funds
- Limited-time special offers
- Abundant educational tools and resources
- 24/7 customer service
- Over 100 brick-and-mortar branches across the U.S. for face-to-face support
Cons
- Fidelity Go® has a 0.35% advisory fee per year for balances of $25,000 and over
- Some of Fidelity’s mutual funds require reaching specific thresholds
- Reports of platform outages during heavy trading days
Charles Schwab
-
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit
-
Fees
Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract
-
Bonus
-
Investment vehicles
Robo-advisor: Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Brokerage Account + Specialized Platforms and Support for Trading, Schwab Global Account™, Schwab Organization Account and Schwab Trading Powered by Ameritrade™
-
Investment options
Stocks, bonds, mutual funds, CDs and ETFs
-
Educational resources
Extensive retirement planning tools
Pros
- $0 minimum deposit for active investing
- No commission fees for stock and ETF trades and no transaction fees for over 4,000 mutual funds
- Offers extensive retirement planning tools
- Users can get on-demand advice from a professional advisor/Schwab expert
- Robo-advisor Schwab Intelligent Portfolios® available as a no-fee automated service option (with Premium version available for a fee)
- Award-winning thinkorswim® trading platforms and all their cutting-edge tools are now available at Schwab.
- 24/7 customer support access by phone or chat
- Charles Schwab offers over 300 brick-and-mortar branches across the U.S. for in-person support
Cons
- Specific transactions may require commission fee
- Robo-advisor Schwab Intelligent Portfolios Premium charges a one-time planning fee of $300, then a $30 per month advisory fee. For that price, you get unlimited 1:1 guidance from a CFP, interactive planning tools, plus a personalized roadmap for reaching your goals
Robo-advisors can help, too
If DIYing your retirement fund scares you, a robo-advisor like Betterment or Wealthfront is a better route. These automated investing platforms build and manage your retirement portfolio for you so you can be totally hands-off. There are tools to help you figure out how much money you need to save and to make sure you don’t contribute beyond the annual IRA limits.
Though you can contribute more to a 401(k) than an IRA, IRAs are still a good start to building up a solid foundation of savings.
Betterment
-
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. For example, Betterment doesn’t require clients to maintain a minimum investment account balance, but there is a ACH deposit minimum of $10. Premium Investing requires a $100,000 minimum balance.
-
Fees
Fees may vary depending on the investment vehicle selected, account balances, etc. Click here for details.
-
Investment vehicles
-
Investment options
Stocks, bonds, ETFs and cash
-
Educational resources
Betterment offers retirement and other education materials
Terms apply. Does not apply to crypto asset portfolios.
Pros
- No trade or transfer fees
- Good for automated investing
- Customizes users’ portfolios around their financial goals, timeline and risk tolerance
- Users can assign specific investing goals (short- and long-term) to each portfolio and invest using different strategies (less and more risk)
- Quick and easy to set up account
- Able to sync external retirement accounts to your Betterment retirement goal so all your accounts are in one place. Premium plan users get unlimited access to a financial advisor (otherwise, one-time advisor consultations cost a fee ranging from $299 to $399)
- Advanced features include automatic rebalancing, tax-saving strategies and socially responsible investing
Cons
- Base price for investing accounts is $4/month – recurring monthly deposits totaling $250, or total Betterment account balances reaching $20,000, automatically switch you to an annual price of .25% of your investing account balances
- Premium plan requires $100,000 minimum balance
Wealthfront
-
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. $500 minimum deposit for investment accounts
-
Fees
Fees may vary depending on the investment vehicle selected. Zero account, transfer, trading or commission fees (fund ratios may apply). Wealthfront annual management advisory fee is 0.25% of your account balance
-
Bonus
Get $30 bonus when you fund your first taxable investment account
-
Investment vehicles
-
Investment options
Stocks, bonds, ETFs and cash. Additional asset classes to your portfolio include real estate, natural resources and dividend stocks
-
Educational resources
Offers free financial advice for college planning, retirement and homebuying
Pros
- No trade or transfer fees
- Good for automated investing
- Picks investments based on user’s risk tolerance and time until retirement
- Offers a cash management checking account with a debit card
- Tax-loss harvesting to reduce the taxes you pay:
- Fund your first taxable Investment Account and get a $50 bonus.
Cons
- $500 minimum deposit
- 0.25% management fee
Subscribe to the CNBC Select Newsletter!
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
