This was the average balance of 401 (K) last year, according to a recent Vanguard report. Are your savings arranged?

Investing in 401 (K) is an incredibly powerful way to save retirement.
Although everyone’s savings goals are different, it can be useful to see how your account balance is compared to the average.
If you are lagging behind, there is a simple way to potentially increase your savings by hundreds of thousands of dollars.
Social Security Bonus in the amount of $ 23,760 most retirees completely overlook ›

If you have access to 401 (k) and you are regularly contributing, you are already in front of the game when it comes to retirement planning. A 401 (K) is one of the most powerful retirement tools there and can help recharge your savings.

When planning retirement, everyone’s trip will be different. Your savings goals will depend on many factors, such as the cost of living in your area, the number of years you expect to spend in a pension, and the type of lifestyle you want to enjoy. Your savings may look wildly different from others of your age and that’s good.

This said that sometimes it can be useful to see what the average American has taken to his pension fund. Here’s what Vanguard’s most new data show, as well as a simple way to increase your savings.

Image source: Getty Images.

Each year, Vanguard releases its report “How America Saves”, in which it describes in detail the savings habits among participants in Vanguard 401 (K). Although these figures only take into account Vanguard account holders – not the common population – they can be useful to get an idea of where many Americans are in savings.

The latest report, published in 2025 and on the basis of last year’s data, reveals that the average balance of 401 (k) among all participants in Vanguard is $ 148.153. However, the Median is only $ 38,176. Because extremely tall people can distort the average, the middle part is a more accurate representation of the typical person.

However, destroyed by age range, the average and average numbers differ significantly from the total average:

Age range	An average of 401 (k) balance	Average 401 (K) Balance
Under 25	$ 6,899	$ 1.948
25 to 34	$ 42 640	$ 16,55
35 to 44	$ 103,552	$ 39,958
45 to 54	$ 188,643	$ 67,796
55 to 64	271 320 dollars	$ 95 642
65 and older	$ 299 442	$ 95 425

Data Source: Vanguard.

Again, your individual savings goals will depend on your situation. So if your 401 (k) balance does not match the average American, it does not necessarily mean that you are on the way.

Instead of relying solely on comparing your balance with the average, it is wise to talk to a pension planning expert or manage your information through a retirement calculator to evaluate savings. These tools can give you a rough idea of how much you need to strive to save based on your unique situation.

One of the best ways to save more in your 401 (K) is to take full advantage of the employer’s match if your plan offers one. The huge 86% of Vanguard 401 (K) plans offer some kind of coinciding contributions, according to a report that can increase your savings by thousands of dollars a year with practical zero efforts on your part.

For example, the average annual income among US workers in 2024 was about $ 60,000 a year, according to the Bureau of Labor Statistics. Say you earn $ 60,000 a year and your employer will match 100% of your contributions up to 3% of your salary – or $ 1800 a year.

Let’s also say that you are currently contributing only to $ 1,500 a year while earning the same amount in the matching contributions. If you earn an 8% average annual return on your investment, here is approximately how much you can win by increasing your savings to $ 1800 a year and winning the full match:

Number of years	General Savings: Investing $ 1,500 a year + $ 1500 dollars of the company	General Savings: Investing $ 1800 a year + $ 1800 dollars of the company
20	$ 137,000	$ 165,000
25	$ 219,000	$ 263,000
30	$ 340,000	$ 408,000
35	$ 517,000	$ 620,000
40	777,000 dollars	$ 933,000

Data Source: Author’s calculations via Investor.gov.

In other words, contributing only $ 300 more a year – or $ 25 a month – to win the full match of the employer can increase your total savings by more than $ 150,000 a career. The company’s match is essentially free money and to take full advantage of it can transform your retirement savings.

Investing in your 401 (K) is one of the most effective ways to save retirement and no matter how your balance compares to others, small steps can go a long way. By contributing consistently and taking advantage of the company’s match, you can increase your savings by hundreds of thousands of dollars over time.

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This was the average balance of 401 (K) last year, according to a recent Vanguard report. Are your savings arranged? Originally published by Motley Fool

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