Average 401(k) Balance By Age: 2024 Data
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- čas přidán 5. 07. 2024
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"Comparison is the thief of joy" - President Theodore Roosevelt
While I wholeheartedly agree with this quote, there's a few positives that could come from comparing your 401(k) balance to the average in your age group:
1. You realize you're ahead of the game, giving you a boost of confidence and reassurance that you're doing the right thing by continuing to save.
2. You realize you're behind, motivating you to take action to catch up.
In this video Jake reviews recent data from Empower that reveals the average and median 401(k) balances by age group, and how you can catch up if you feel behind.
0:00 Intro
1:05 The Data
1:26 Average vs. Median
2:15 Projections at Retirement Age
2:43 Age 20-29
3:30 Age 30-39
4:40 Subscribe! / @sparkwealthadvisors
4:59 Age 40-49
6:30 Age 50-59
7:30 60s, 70s, 80s
7:58 My Thoughts & Observations
9:04 Tips if you feel behind
Investing risks include loss of principal and fluctuating value. There is no guarantee an investment strategy will be successful.
*This content is educational and not tax, legal, or investment advice*
Link to the empower data used for the video: www.empower.com/the-currency/...
Did these numbers surprise you?
Hey I noticed an asterisk at the bottom of the slides that says “assumes 1% increase” is that a 1% increase yearly from say 35-67? Or is that capping it somewhere along the way? Or is this showing a 40% contribution by the time someone is close to retirement? Thank you
That's increasing the $7500 by 1% each year from each starting age with no cap, which probably has minimal effect in the long run (only $75 more in year 2).
1% of salary ($750) would have been more appropriate to show, now that you mention it. Good question and thanks for asking.
@@SparkWealthAdvisors is there a calculator I can use to determine how much would go in with a 1% contribution increase but with a 12% annual salary increase as well?
@@ramirogallo4303 That sounds like a job for excel. Are you expecting a 12% raise every year or just one-time?
@@SparkWealthAdvisors every year.
Good info (just FYI: green is not your color )
LOL thanks for the feedback! 😆
Sounds dumb but just the mention of an automatic contribution increase over time….. I didn’t know that. I set my contributions to increase 2%. Thanks for the info!
Awesome! It's definitely a lesser-known feature of most plans. Thanks for sharing!
Only use the MEDIAN - NOT the MEAN. The Mean is skewed and is useless. The MEDIAN is much more useful and MUCH lower than the MEAN.
I agree - I mentioned this in the video.
The median may make you feel better about yourself, but only until you retire and start withdrawing. Then you’ll wish you’d compared yourself to the mean.
This works, I've been putting $1000/mo into my retirement investments since I turned 20 and at 44yrs old now, I'm just shy of 7 figures. I've been living off of the dividends the past 3 years and haven't had to punch a clock for the man since!
That’s amazing! Thanks for sharing!
In the middle there where you talk about lifestyle creep... lets not forget the average life expectancy is 76... thats 9 years to enjoy you retirement that you held off on living big for...
I agree. I'm all for finding a balance between intentionally spending today and saving for tomorrow.
I just feel sad that we are all F’d. 😢
I hear this all the time. You’re not as F’d as you think! Hang in there.