Average 401k Balance By Age 2023 || Fidelity & Empower

[Music] all right let's talk about the average 401K balance for the year 2023 and we're going to look at two major 401K providers one is Fidelity and the other is Empower both have released their average and median 401K numbers for the year 2023 so let's dive into that today now keep in mind these numbers do not consider if you have other retirement assets we're only considering 401K balances so it's not something that says this is all encompassing of your retirement but it's a good way to gauge where you are at within your 401k and your age so let's look at this so this is the average 401K balance by age for the year 2023 presented by Empower Empower is a very large 401K provider here in America now this was published February 26 2023. so you can see this we have the average 401K balance here and we have the median 401K balance here now the average is a little skewed because what happens with averages is you've got Bill Gates at the top and you've got a 22 year old who just got in the workforce down here who has zero and what an average does it takes everybody it averages it out it doesn't give you a true sense of the middle that's what the median's for the median takes Bill Gates takes that person at the bottom and it puts a DOT right in the middle so it gives us a better idea of where 401K balances are for this particular age group all right so let's get into it so ages 25 to 30 the average 401K balance is 16 000 371 the median is about six thousand age 30 to 35 33 135 the median twelve thousand one hundred sixty nine ages 35 to 40 that's where I'm at thirty seven we've got fifty nine thousand three ninety nine is the average and the median is right under twenty thousand dollars now forty to forty five ninety Thousand Seven seventy four and the median is twenty six nine eighty nine forty five to fifty this is where it starts to get important because when you're starting new retirement planning at forty retirement planning at 50. retirement planning at fifty five you're starting to get into the depths you're starting to get into the teeth you're starting to get into the meat and taters like we like to say down here in the south of your retirement planning because you're looking at going hey in 12 15 years I'm going to be eligible for Social Security in 12 15 years I'm going to be eligible for Medicare I need to start thinking about retirement I seriously need a retirement EKG a financial plan that's going to get me to and through retirement and also protect my ability to stay there so ages 45 to 50 123 686 is the average 401K balance the median's much lower 33 605. ages 50 to 55 161 000 43 000 is the median ages 55 to 60 the average is right under two hundred thousand dollars and the median is 55 000. ages 60 to 65 we start to drop 198 194 is the average 53 3 is the median that's because a lot of people retire they start using those 401ks for retirement income in age 65 to 70 see we see a bigger drop to 185 is the average and forty three thousand one fifty two is the median again we see the drops because people later in life are retiring using those 401ks and those IRAs for retirement income now keep in mind this does not include multiple different 401ks the average person switches jobs about five times in their lifetime so you might have five 401ks or you might have five IRAs you might have a 401k and four rollover IRAs or Roth IRAs or a brokerage account so don't let these numbers you know disappoint you or unmotivate you let them motivate you towards your goal for getting to retirement because what we want to see in our retirement planning is not necessarily large numbers but consistency in Saving investing and contributing and that's what we really want to see now let's look at fidelity so Fidelity is a little different so what Fidelity gives us and this is on cnbc's website which I like about this is it gives us the average 401K from quarter 4 20 22 versus quarter four twenty twenty one now what happened for 2021 to 2022 the market went down right so the average 401K at Fidelity for everybody in the year 2021 was 135 600 and the average 401K at the end of 2022 was 103 900 a loss of 23 now keep in mind the market was down about 18 okay the average Ira at Fidelity at the end of 2021 130 700. at the end of quarter four it was a hundred and four thousand dollars and the average 403 b which is hospitals and medical facilities normally quarter four 2021 115 000 and at the end of 2022 ninety two thousand six eighty three so we did see a decrease basically because of Market loss but with the Fidelity report also showed was that individuals continue to contribute and we wrote an article on our website pearlwealthgroup.com talking about understanding the average 401K balances by age and things that you can think about factors that affect your 401k balance and tips to help boost your 401k balance so check that out the link is below if you want to get in touch with us also and get a financial EKG that is below as well so I hope this video has helped inform you educate you and give you some hope and confidence for the future God bless bye [Applause] [Music]

Channel: Your Financial EKG™

Views: 19,470

Keywords: average 401k balance, average 401k balance by age, average 401k balance by age 2023, 401k, retirement, retirement planning, 401k balance, average net worth by age 2023, retirement income portfolio, retirement income needed, retirement investing in your 40s, 401k millionaire, retirement income, retirement income sources, retirement income streams, retirement planning at 50, retirement income planning, 401k investing, retirement planning at 60, retirement savings, retire

Id: I5XpoNee5mY

Length: 6min 34sec (394 seconds)

Published: Wed Mar 01 2023