While Americans have amassed a staggering $38.6 trillion in retirement assets, the hard truth is that for many, the average 401(k) balance of $232,710 for those aged 65 and older may not be nearly enough to fund a comfortable retirement.
Key Takeaways
- The average 401(k) or similar plan balance for participants aged 65 and older was $232,710 as of December 31, 2023
- Fidelity reports the average 401(k) balance for savers aged 60-69 reached $232,710 by Q4 2023
- Vanguard's 2024 How America Saves notes median 401(k)/IRA balance for ages 65+ at $88,400
- The average employee contribution rate to 401(k) plans was 7.4% of salary in 2023 per Vanguard
- Fidelity savers contributed an average of 8.9% to 401(k)s in 2023
- EBRI/ICI data shows average participant deferral rate of 7.3% in 2022 401(k)s
- 67% of American workers had access to employer-sponsored retirement plans in 2022 per BLS
- Fidelity participation rate in 401(k)s reached 88% of eligible employees in 2023
- Vanguard reports 83% participation rate in auto-enrollment 401(k) plans in 2023
- 49% of U.S. households have no retirement savings per Fed SCF 2022
- Northwestern Mutual study: 51% fear outliving savings, average gap $138,000
- EBRI Retirement Confidence Survey: 54% Gen X not on track for retirement 2023
- Black households have 23% of white household retirement wealth per Fed SCF 2022
- Women hold 58% less in retirement savings than men per Fidelity 2023
- Vanguard: Gen Z participation up 25% since 2020 in 401(k)s 2023
The average retirement savings are far below what most Americans will need.
Average Balances and Assets
- The average 401(k) or similar plan balance for participants aged 65 and older was $232,710 as of December 31, 2023
- Fidelity reports the average 401(k) balance for savers aged 60-69 reached $232,710 by Q4 2023
- Vanguard's 2024 How America Saves notes median 401(k)/IRA balance for ages 65+ at $88,400
- Average IRA balance across all ages was $129,200 for Fidelity customers in 2023
- Schwab's 2023 401(k) Year-End Analysis shows average participant balance of $112,400
- EBRI/ICI 401(k) database reports average account balance of $134,128 for 2022 year-end
- Median 401(k) balance per Vanguard for ages 45-54 was $71,150 in 2023
- Fidelity average 401(k) balance for ages 50-59 hit $219,100 in Q4 2023
- Total U.S. retirement assets reached $38.6 trillion in Q4 2023 per ICI
- Average 403(b) balance for Vanguard participants was $62,900 in 2023
- Fidelity reports average Roth 401(k) balance of $11,200 for 2023
- Median balance in defined contribution plans was $35,286 per EBRI 2022 data
- Vanguard average balance for ages 35-44 was $37,500 in 2023 401(k)s
- Schwab average 401(k) balance for long-tenured participants (15+ years) was $367,500 in 2023
- ICI notes IRAs held $12.5 trillion in assets end of 2023
- Fidelity median 401(k) balance across all ages was $28,300 in Q4 2023
- Average DC plan balance for ages 25-34 was $13,500 per Vanguard 2023
- EBRI average 401(k) balance for participants aged 55-64 was $215,600 in 2022
- Total 401(k) assets exceeded $7.4 trillion in 2023 per ICI
- Fidelity average balance for new retirees (age 60+) in IRAs was $226,000 in 2023
- Vanguard median balance for ages 55-64 was $71,150 in 2023
- Schwab reports average balance growth of 14.7% in 2023 for 401(k)s
- Average Keogh plan balance was $145,200 per ICI 2023 data
- Fidelity average 401(k) for ages 70+ was $265,500 in Q4 2023
- EBRI median for ages 65+ in 401(k)s was $70,620 end 2022
- Vanguard total participant assets in DC plans hit $10.1 trillion in 2023
- Average balance in closed-end funds for retirement was $2.5 million per ICI
- Fidelity reports average IRA rollover balance of $125,000 in 2023
- Schwab median 401(k) balance was $31,400 across participants in 2023
Average Balances and Assets Interpretation
The statistics paint a picture of a starkly divided retirement landscape, where the impressive average balances of the persistently invested are dwarfed by the sobering medians that reveal most Americans are still worryingly behind.
Contribution and Withdrawal Rates
- The average employee contribution rate to 401(k) plans was 7.4% of salary in 2023 per Vanguard
- Fidelity savers contributed an average of 8.9% to 401(k)s in 2023
- EBRI/ICI data shows average participant deferral rate of 7.3% in 2022 401(k)s
- Vanguard employer match averaged 4.3% of salary in 2023 plans
- Fidelity reports 15.6% of 401(k) savers at 15%+ contribution rate in 2023
- Average withdrawal rate in retirement for Fidelity IRA clients was 3.9% in 2023
- Schwab notes average contribution limit utilization of 12% of salary in 2023
- ICI reports total 401(k) contributions grew 12% to $580 billion in 2023
- Vanguard average total contribution rate (employee+employer) was 11.9% in 2023
- Fidelity employee contribution rate increased to 8.2% average in Q4 2023
- EBRI finds 66% of 401(k) participants contributed in 2022, average rate 7.2%
- Average Roth contribution rate was 5.1% per Vanguard 2023 data
- Fidelity safe withdrawal rate benchmark met by 25% of retirees in 2023
- Schwab employer contribution average 4.7% in 2023 401(k) plans
- ICI IRA contributions totaled $75 billion in 2023
- Vanguard auto-enrollment plans saw 82% participation with 6.3% contrib rate
- Fidelity reports average catch-up contribution of $3,200 for eligible in 2023
- EBRI average withdrawal from 401(k)s post-retirement was 4.2% in 2022
- Fidelity 401(k) contribution rates highest at 9.5% for ages 40-49 in 2023
- Vanguard total DC contributions averaged $8,900 per participant in 2023
- Schwab withdrawal rates averaged 4.1% for retirees in 2023
- ICI notes 401(k) withdrawal assets processed $120 billion in 2023
- Average after-tax contribution rate 1.2% per Vanguard 2023
- Fidelity mega-backdoor Roth utilization in 5% of plans with $10k avg in 2023
- 78% of Vanguard plans had auto-contribution escalation averaging 0.5% annually
Contribution and Withdrawal Rates Interpretation
The collective portrait of America’s retirement savings is a cautiously optimistic study in gradualism: while average contribution rates hover around a modest 7-8%, employers add a helpful nudge, a determined minority saves aggressively, and most retirees wisely siphon their nest eggs at a prudent 4%—proving that while we may not be racing toward the finish line, we are at least, steadily and sensibly, walking in the right direction.
Demographic and Trend Analysis
- Black households have 23% of white household retirement wealth per Fed SCF 2022
- Women hold 58% less in retirement savings than men per Fidelity 2023
- Vanguard: Gen Z participation up 25% since 2020 in 401(k)s 2023
- EBRI: Hispanic workers participation 58% vs 68% white in 2022 plans
- BLS: Union workers 87% coverage vs 49% non-union 2022
- ICI: Baby Boomers held 45% of retirement assets in 2023
- Fidelity: Average balance for women $168k vs $253k men ages 50-59 2023
- Census: Median savings for college grads $120k vs $20k no HS 2022
- Vanguard contribution rates 8.1% men vs 7.6% women in 2023
- EBRI RCS: 45% women vs 33% men worried about shortfall 2023
- Fed SCF: Median Gen X retirement savings $102,000 in 2022
- Transamerica: Millennials save 9.2% income avg vs 10.5% Boomers
- Fidelity Roth adoption 22% among millennials 2023
- Vanguard: High-income ($100k+) balances avg $320k vs $45k low-income 2023
- SSA: Women receive 80% of men's benefits due to earnings gap
- BLS: Part-time workers 16% coverage vs 55% full-time 2022
- ICI: Silent Generation assets declining 5% YoY to 12% total 2023
- Fidelity: Gen Z avg balance $5,200 up 50% from 2022
- EBRI: Rural workers lower participation 55% vs 70% urban 2022
- Vanguard ESG fund adoption 15% higher among younger savers 2023
- Census: Married couples median $250k savings vs $50k singles 2022
- Transamerica: Self-employed save 11% vs 8% employed 2023
- Fidelity women retiring 3 years earlier impacting savings 2023
- Fed: Top 10% hold 80% retirement wealth disparity 2022 SCF
- Vanguard balances for ages 65+ up 25% since 2020 trend
Demographic and Trend Analysis Interpretation
We see a retirement landscape where the spoils of prudence are unmistakable, yet the gates to that security are rusted shut for some by disparities in race, gender, class, and the simple luck of your employer.
Plan Participation and Coverage
- 67% of American workers had access to employer-sponsored retirement plans in 2022 per BLS
- Fidelity participation rate in 401(k)s reached 88% of eligible employees in 2023
- Vanguard reports 83% participation rate in auto-enrollment 401(k) plans in 2023
- EBRI notes 52 million active 401(k)/IRA participants in 2022
- DOL data shows 70% of private sector workers covered by retirement plans in 2023
- ICI estimates 70 million Americans in DC plans end 2023
- Schwab participation rate averaged 87% in administered 401(k)s 2023
- 15% of workers participated in multiple retirement plans per EBRI 2022
- Vanguard solo 401(k) plans grew 20% to 45,000 in 2023
- Fidelity reports 92% participation in plans with auto-escalation features 2023
- BLS NPS shows 40% participation rate among private industry workers 2022
- 55% of state/local government workers covered by pensions per DOL 2023
- ICI IRA ownership at 35% of U.S. households in 2023
- Vanguard 403(b) participation rate 75% in 2023 plans
- Fidelity small business 401(k) participation 65% average 2023
- EBRI finds 68% of Gen X in employer plans 2022
- DOL EBSA reports 89 million covered by private pensions 2023
- Schwab SIMPLE IRA participation up 12% in 2023
- 62% of full-time workers had retirement coverage per Census 2022
- Vanguard reports 28% of plans offered Roth options with 18% uptake 2023
- Fidelity HSAs used for retirement by 20% of participants 2023
- ICI total DC plan participants 100 million+ in 2023
Plan Participation and Coverage Interpretation
While we’re getting better at inviting everyone to the retirement savings party with soaring participation rates when plans are offered, the sobering truth is that the guest list is still far too exclusive, leaving a concerning portion of the workforce without a ticket to the dance.
Retirement Readiness and Shortfalls
- 49% of U.S. households have no retirement savings per Fed SCF 2022
- Northwestern Mutual study: 51% fear outliving savings, average gap $138,000
- EBRI Retirement Confidence Survey: 54% Gen X not on track for retirement 2023
- Fidelity projects $1.6 million needed for comfortable retirement in 2024
- 56% of Americans have less than $10,000 saved for retirement per GoBankingRates 2023
- GAO reports 48% of households age 55+ have no savings 2023
- Transamerica: Average expected retirement age 67 but 57% save <10% income
- 40% shortfall in retirement income projected for near-retirees per SSA
- Vanguard: Only 24% on pace for target savings rate in 2023 plans
- Fidelity: Average worker on track for 77% of retirement goal in 2023
- EBRI: 53% of early Boomers have savings replacement rate <50%
- 64% of retirees spend more than planned first year per Natixis 2023
- Urban Institute: Median retiree net worth $289,500 but 25% below poverty line risk
- 71% of pre-retirees have no long-term care plan per AARP 2023
- Morningstar: Savers need 15x salary at 67, average at 7x per 2023
- 37% of workers have no DC or IRA savings per Fed 2022 SCF
- TIAA Institute: 44% at risk of running out of money in retirement
- 28% of Americans retire with debt averaging $94,000 per 2023 study
- EBRI RCS: 88% desire comfortable retirement but 36% no plan
- Fidelity gap analysis: Women need $1.3M, have $700k projected 2023
- 45% of households near retirement have <$100k saved per Census 2022
- SSA trustees: Social Security covers 40% replacement, need 70-80% total
- Vanguard: 50% of participants under-saved by 30%+ of target 2023
- 62% of non-white workers expect shortfall per Transamerica 2023
- Fidelity: Men projected 82% of goal, women 74% in 2023 analysis
- GAO: 29% of older adults have no retirement savings 2023
- 55% of millennials fear not retiring comfortably per Natixis 2023
- EBRI: Projected income replacement 52% for average worker 2023
- TIAA: Women face 30% larger shortfall than men in retirement
- Vanguard balances grew 19% but 40% still below target multiples 2023
- Fidelity: Average 9x salary multiple at 67 vs 10x needed 2023
Retirement Readiness and Shortfalls Interpretation
America is sleepwalking into a senior citizen financial horror movie, where the plot twist is that the monster is simply a comfortable armchair and the cliffhanger is whether Social Security will be the hero or just another victim.
Sources & References
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