The average person age 65 and older has $272,588 in his or her 401(k), according to the latest data from retirement giant Vanguard. This is significantly higher than the average balance of $232,710 for this age group at the end of 2022.

However, the average tells only half of the story. While the average 401(k) participant has $272,588, the median balance for this age group is $88,488. Mathematically, that means half of participants have less than $88,488 in their accounts, while half have more.

Overall, 28% of 401(k)s held at Vanguard have less than $10,000 in them, and small-balance accounts make the median far smaller than the average. And this certainly makes sense. After all, many people only stay at a job for a year or two, and therefore have relatively little money in their 401(k). Meanwhile, the average person who has been at a job for a decade or more has a 401(k) balance that is more than double the overall average.

A couple of big caveats

First, the $272,588 figure is based on Vanguard's 2024 How America Saves report, and the latest edition uses year-end 2023 data. The stock market has performed quite well since the end of 2023, so it's fair to say that the average has probably risen considerably in 2024.

Second, this is the average amount of money in a Vanguard 401(k). It doesn't necessarily tell us the total retirement savings the average person has. For example, a 70-year-old retiree could have a Vanguard 401(k), some money in a Roth IRA, another 401(k) from a former employer and other retirement savings sources.

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How much should you have?

There's no one-size-fits-all magic number you should have in your 401(k) when you retire. Many retirement planners suggest that by the time you reach retirement, you should have about 10 times your final salary saved.

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