The Typical 401(k) Amount for Retirees Aged 60 and Above

The Typical 401(k) Amount for Retirees Aged 60 and Above

In a comprehensive study, financial services giant Fidelity analysed 401(k) data from 26,700 corporate defined contribution plans, involving 24.5 million participants. This extensive analysis offers valuable insights into the state of retirement savings for American workers.

The 401(k) account, a common retirement savings vehicle offered by employers, allows employees to contribute pre-tax dollars and invest them tax-deferred. Employers may also offer matching contributions, up to a set percentage of each employee's salary. These contributions are deductible up to a certain point.

However, it's important to note that there is no one-size-fits-all answer for how much a worker should save as they approach retirement. Each individual's savings goals should be tailored to their desired lifestyle in retirement. For instance, retirees aged 60 to 70 had an average 401(k) balance of approximately $200,000 in 2024, according to Fidelity's data. The average balances for ages 60 to 64 were $246,500, for ages 65 to 69 were $251,400, and for ages 70 and over were $250,000.

While these averages provide a useful benchmark, they also capture many different scenarios. For example, the median annual earnings for a full-time U.S. worker are above $50,000, making Fidelity's recommendation of saving eight times your annual salary by age 60 and 10 times your annual salary by age 67 far higher than the average balance for its plan participants near retirement.

Data like this can help workers gauge where they stand in terms of retirement savings. However, retirees should work with a financial advisor or on their own to determine how much they need to support their desired lifestyle. Withdrawals from the 401(k) account are taxed at the account holder's ordinary tax rate.

Fidelity, a company with a reputation for size and expertise in the retirement savings space, encourages workers to take advantage of their 401(k) plans and save as much as possible for a comfortable retirement. By doing so, they can work towards securing their financial future and enjoying the retirement they deserve.

Read also:

• Understanding Hemorrhagic Gastroenteritis: Key Facts
• Stopping Osteoporosis Treatment: Timeline Considerations
• Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
• Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan