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Average 401k Balance by Age - YouTube
Channel: Let's Not Be Fools
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- What is the average
401(k) balance by age range?
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Let's find out.
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(upbeat music)
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Hello, this is Matt
from Let's Not Be Fools,
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the channel that brings you financial
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and other life advice
a couple times a week.
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Let's get into this.
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We're gonna look at some data
based on a study by Fidelity
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that took a look at the
average 401(k) balance
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for the accounts they're holding,
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and it gives us some pretty good insight
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as to what's going on out there
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in terms of retirement accounts.
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It's important to keep in mind
that this study is just done
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by Fidelity based on the
accounts that they know of,
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that is the ones they're holding.
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Many people have multiple
accounts at multiple brokerages,
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so this doesn't really represent
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the average retirement
savings of everybody,
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just of those accounts
that are with Fidelity.
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So would you believe
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that the average 20 to 29-year-old person
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that has a 401(k) balance
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with Fidelity has an
account balance of $210,510?
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(record scratching)
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I hope you don't believe
that because it's not true.
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I know this is disturbing
to have me this close.
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I'll back off.
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Actually, the average 20 to
29-year-old has a balance
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of $11,800.
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The average balance of a 30
to 39-year-old is $42,400.
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The 40 to 49-year-old has an
average balance of $102,700.
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50 to 59-year-olds have
a balance of $174,100,
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and last but certainly not least,
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the 60 to 69-year-olds have an
average balance of $195,500.
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So take a look at these figures.
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See where you fall in terms of your peers,
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and kinda take a look at
that and see where you are.
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Now, I think benchmarking
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against your peers is a
good thing, but really,
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you're not competing against them.
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You're competing against
yourself and what kind
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of retirement you wanna
have in the future.
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Now, these numbers are kind of alarming.
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These values are really low
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when you think about needing
money for retirement.
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The 50 to 69-year-olds don't
have near enough saved up
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for an independent retirement,
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and even though they'll get
Social Security benefits,
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that's still not gonna be enough
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to really have a secure
retirement for most people.
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If you're in these younger age ranges,
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you'll need to know that I
need to save a lot more money.
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I don't wanna end up down
here with these low values.
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I wanna end up with several
hundred thousand dollars,
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and there are some guidelines
that I'll go over in a minute,
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but again, this is the time to think
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about how much you'd put
away earlier in your life
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so that these balances are not this low
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when you get here later in life.
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Now, here are some guidelines
that were thrown out
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by some financial professionals somewhere.
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They say this is the amount of money
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that you should have saved
in your retirement accounts
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by a certain age.
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So by age 30, you should
have at least half
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of your annual salary.
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So if you're making
$50,000 a year at age 30,
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You should have at least 25,000
in your retirement savings,
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and then by the time you're 40,
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you should have two times your
annual salary range saved up
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in retirement.
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So if at 40 you're making $100,000,
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then they say by age 40 you
should have about $200,000
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in your retirement
accounts and so on down,
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50, 60, all the way to 67, and by age 67,
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eight times your salary,
so if you're making,
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let's say you're still making
$100,000 a year at age 67,
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they would want you to
have at least eight times
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that $100,000 or $800,000 saved
up in a retirement account,
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and that $800,000 still
might not be enough,
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but at least it's a lot better
than the $195,000 average
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right here that you see.
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So these are just kinda guidelines.
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I still don't even think that's enough.
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It really doesn't come down to a factor,
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but it comes down to an
amount of money based
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on what your retirement goals
are and what your standard
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of living will be,
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and I can cover those
in subsequent videos,
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but I just wanted to make
this video to kind of show you
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where the averages are right now
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for the most part just
so you can benchmark
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and kinda compare and even compete,
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but really, compete against yourself.
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Challenge yourself to really build up
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a retirement account worth having.
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Obviously, retirement isn't always
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about how much money you have saved up.
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It's definitely about living
a fulfilling retirement,
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but having money as that
security is definitely
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a good thing,
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and I think we can all
agree having a good amount
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of money saved up in retirement to live on
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and live on comfortably
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and give you that
security is a good thing.
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So that's why I wanted to make this video,
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just so you can get an
idea of where you are
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and where you wanna be.
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Think about it, and if
you have any comments,
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put 'em down below.
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I'd love to answer your
questions if you have any,
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and that's it for now.
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Have a great day.
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