According to data that Fidelity shared with CNBC, as of the first quarter of 2024, the median 401k balance for Americans in their 50s is $64,300. The average balance for that same age group is $212,400 because larger 401k accounts skew this number higher.
According to Yahoo, financial advisors recommend that by age 50, people should have 5-6 times their annual income in a 401(k) account. Americans themselves think they should have $1.8 million in their retirement account by retirement, according to a survey done by Charles Schwab.
Approximately 20% of adults over the age of 50 reportedly don’t have any type of retirement account at all, because of rising costs of living and few retirement savings options.
“Every adult in America deserves to retire with dignity and financial security,” says Indira Venkateswaran, AARP’s senior vice president of research.
One way that adults over the age of 50 can add to the balance in their 401k is through catch-up contributions, which allow extra contributions on top of their regular contribution limit for a year. The maximum catch-up contribution amount for 2024 is $7,500.