The Average 401(k) Balance By Age, Income Level, Gender, & Industry

Account balances increase with age and income level



In 2019, the average 401(k) account balance was $92,148, according to Vanguard data.

Each year, the investment company analyzes account data from 5 million retirement accounts. Across these accounts, the typical account balance varies widely by the method used to calculate it — while the average 401(k) savings balance is over $90,000, the median account balance is much less at $22,217, according to Vanguard's latest data, which was calculated in 2019.

But there are several factors that influence the typical amount that people have to retire. In general, account balances increase with age and income level, as well as the industry where you work and your gender.

Retirement savings are invested, so they grow with compound interest, which makes account balances increase with time. Like other types of retirement accounts, money saved in a 401(k) grows like a snowball, with interest earning interest on itself.

With compounding interest, the earlier money is put into an account, the more opportunity it has to grow, and the greater the possible returns. In retirement accounts like 401(k)s, building retirement savings early means a greater opportunity for growth.

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Source: Business Insider

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