Understanding Your 401(k) Account Position: Retirement Savings by Age

Wondering how your retirement account stacks up? Vanguard’s 2025 How America Saves report offers a valuable benchmark for workers tracking their financial cushion across different life stages.

Breaking Down the Numbers: What Retirees Actually Have Saved

The data reveals significant variation in accumulated wealth as workers approach and enter retirement. Among Vanguard participants, those between 55 and 64 maintain an average of $271,320, while those 65 and beyond average $299,442. However, these figures tell only part of the story.

Source: Vanguard

Median vs. Average: Which Number Really Matters?

Here’s a critical distinction most people miss: the median balance often provides a clearer picture than the average. Why? High-balance outliers can distort averages significantly. For instance, among those 55-64, the median of $95,642 sits well below the average of $271,320—a gap revealing that a minority of exceptionally wealthy participants skews the overall figure upward. The median represents the true midpoint, reflecting what the typical worker has actually accumulated.

Beyond the Benchmarks: Your Unique Path Forward

Comparing your portfolio to these snapshots can provide perspective, but it shouldn’t dictate your strategy. Retirement security depends on your specific expenses, lifestyle goals, healthcare needs, and longevity expectations—not someone else’s account balance. Rather than chasing average figures, focus on calculating what your retirement actually requires based on personal circumstances and timelines.

The Overlooked Social Security Strategy

Many retirees leave substantial money on the table by not optimizing their Social Security claiming strategy. Specific timing and filing decisions could boost annual retirement income by up to $23,760 for certain eligible individuals. Understanding these “hidden” benefits transforms how effectively your total retirement portfolio—combining 401(k) assets with Social Security—serves your long-term security.

The path to retirement readiness isn’t about matching someone else’s balance; it’s about building a sustainable foundation tailored to your needs.