Here’s what you should have in your 401k in your 50s and 60s
While Social Security benefits will be important income for all one day, the 401k plan has become one of the most important retirement instruments, allowing people to use pre-tax money to help them save up for their non-working years. This CNBC article by Jasmin Suknanan discusses, 1.) how much money should someone have in their 401(k) for retirement, and 2.) how much money do people who are preparing to retire actually have in their 401(k) accounts? Information from Vanguard’s 2021 How America Saves Survey revealed the following:
- Average 401(k) balance of ages 45–54: $161,079 (average); $56,722 (median)
- Average 401(k) balance of ages 55–64: $232,379 (average); $84,714 (median)
- Average 401(k) balance of ages 65 and older: $255,151 (average); $82,297 (median)
Read full piece here.