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
1The average 401(k) or similar plan balance for participants aged 65 and older was $232,710 as of December 31, 2023
Verified2Fidelity reports the average 401(k) balance for savers aged 60-69 reached $232,710 by Q4 2023
Verified3Vanguard's 2024 How America Saves notes median 401(k)/IRA balance for ages 65+ at $88,400
Verified4Average IRA balance across all ages was $129,200 for Fidelity customers in 2023
Directional5Schwab's 2023 401(k) Year-End Analysis shows average participant balance of $112,400
Single source6EBRI/ICI 401(k) database reports average account balance of $134,128 for 2022 year-end
Verified7Median 401(k) balance per Vanguard for ages 45-54 was $71,150 in 2023
Verified8Fidelity average 401(k) balance for ages 50-59 hit $219,100 in Q4 2023
Verified9Total U.S. retirement assets reached $38.6 trillion in Q4 2023 per ICI
Directional10Average 403(b) balance for Vanguard participants was $62,900 in 2023
Single source11Fidelity reports average Roth 401(k) balance of $11,200 for 2023
Verified12Median balance in defined contribution plans was $35,286 per EBRI 2022 data
Verified13Vanguard average balance for ages 35-44 was $37,500 in 2023 401(k)s
Verified14Schwab average 401(k) balance for long-tenured participants (15+ years) was $367,500 in 2023
Directional15ICI notes IRAs held $12.5 trillion in assets end of 2023
Single source16Fidelity median 401(k) balance across all ages was $28,300 in Q4 2023
Verified17Average DC plan balance for ages 25-34 was $13,500 per Vanguard 2023
Verified18EBRI average 401(k) balance for participants aged 55-64 was $215,600 in 2022
Verified19Total 401(k) assets exceeded $7.4 trillion in 2023 per ICI
Directional20Fidelity average balance for new retirees (age 60+) in IRAs was $226,000 in 2023
Single source21Vanguard median balance for ages 55-64 was $71,150 in 2023
Verified22Schwab reports average balance growth of 14.7% in 2023 for 401(k)s
Verified23Average Keogh plan balance was $145,200 per ICI 2023 data
Verified24Fidelity average 401(k) for ages 70+ was $265,500 in Q4 2023
Directional25EBRI median for ages 65+ in 401(k)s was $70,620 end 2022
Single source26Vanguard total participant assets in DC plans hit $10.1 trillion in 2023
Verified27Average balance in closed-end funds for retirement was $2.5 million per ICI
Verified28Fidelity reports average IRA rollover balance of $125,000 in 2023
Verified29Schwab median 401(k) balance was $31,400 across participants in 2023
DirectionalAverage 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
1The average employee contribution rate to 401(k) plans was 7.4% of salary in 2023 per Vanguard
Verified2Fidelity savers contributed an average of 8.9% to 401(k)s in 2023
Verified3EBRI/ICI data shows average participant deferral rate of 7.3% in 2022 401(k)s
Verified4Vanguard employer match averaged 4.3% of salary in 2023 plans
Directional5Fidelity reports 15.6% of 401(k) savers at 15%+ contribution rate in 2023
Single source6Average withdrawal rate in retirement for Fidelity IRA clients was 3.9% in 2023
Verified7Schwab notes average contribution limit utilization of 12% of salary in 2023
Verified8ICI reports total 401(k) contributions grew 12% to $580 billion in 2023
Verified9Vanguard average total contribution rate (employee+employer) was 11.9% in 2023
Directional10Fidelity employee contribution rate increased to 8.2% average in Q4 2023
Single source11EBRI finds 66% of 401(k) participants contributed in 2022, average rate 7.2%
Verified12Average Roth contribution rate was 5.1% per Vanguard 2023 data
Verified13Fidelity safe withdrawal rate benchmark met by 25% of retirees in 2023
Verified14Schwab employer contribution average 4.7% in 2023 401(k) plans
Directional15ICI IRA contributions totaled $75 billion in 2023
Single source16Vanguard auto-enrollment plans saw 82% participation with 6.3% contrib rate
Verified17Fidelity reports average catch-up contribution of $3,200 for eligible in 2023
Verified18EBRI average withdrawal from 401(k)s post-retirement was 4.2% in 2022
Verified19Fidelity 401(k) contribution rates highest at 9.5% for ages 40-49 in 2023
Directional20Vanguard total DC contributions averaged $8,900 per participant in 2023
Single source21Schwab withdrawal rates averaged 4.1% for retirees in 2023
Verified22ICI notes 401(k) withdrawal assets processed $120 billion in 2023
Verified23Average after-tax contribution rate 1.2% per Vanguard 2023
Verified24Fidelity mega-backdoor Roth utilization in 5% of plans with $10k avg in 2023
Directional2578% of Vanguard plans had auto-contribution escalation averaging 0.5% annually
Single sourceContribution 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
1Black households have 23% of white household retirement wealth per Fed SCF 2022
Verified2Women hold 58% less in retirement savings than men per Fidelity 2023
Verified3Vanguard: Gen Z participation up 25% since 2020 in 401(k)s 2023
Verified4EBRI: Hispanic workers participation 58% vs 68% white in 2022 plans
Directional5BLS: Union workers 87% coverage vs 49% non-union 2022
Single source6ICI: Baby Boomers held 45% of retirement assets in 2023
Verified7Fidelity: Average balance for women $168k vs $253k men ages 50-59 2023
Verified8Census: Median savings for college grads $120k vs $20k no HS 2022
Verified9Vanguard contribution rates 8.1% men vs 7.6% women in 2023
Directional10EBRI RCS: 45% women vs 33% men worried about shortfall 2023
Single source11Fed SCF: Median Gen X retirement savings $102,000 in 2022
Verified12Transamerica: Millennials save 9.2% income avg vs 10.5% Boomers
Verified13Fidelity Roth adoption 22% among millennials 2023
Verified14Vanguard: High-income ($100k+) balances avg $320k vs $45k low-income 2023
Directional15SSA: Women receive 80% of men's benefits due to earnings gap
Single source16BLS: Part-time workers 16% coverage vs 55% full-time 2022
Verified17ICI: Silent Generation assets declining 5% YoY to 12% total 2023
Verified18Fidelity: Gen Z avg balance $5,200 up 50% from 2022
Verified19EBRI: Rural workers lower participation 55% vs 70% urban 2022
Directional20Vanguard ESG fund adoption 15% higher among younger savers 2023
Single source21Census: Married couples median $250k savings vs $50k singles 2022
Verified22Transamerica: Self-employed save 11% vs 8% employed 2023
Verified23Fidelity women retiring 3 years earlier impacting savings 2023
Verified24Fed: Top 10% hold 80% retirement wealth disparity 2022 SCF
Directional25Vanguard balances for ages 65+ up 25% since 2020 trend
Single sourceDemographic 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
167% of American workers had access to employer-sponsored retirement plans in 2022 per BLS
Verified2Fidelity participation rate in 401(k)s reached 88% of eligible employees in 2023
Verified3Vanguard reports 83% participation rate in auto-enrollment 401(k) plans in 2023
Verified4EBRI notes 52 million active 401(k)/IRA participants in 2022
Directional5DOL data shows 70% of private sector workers covered by retirement plans in 2023
Single source6ICI estimates 70 million Americans in DC plans end 2023
Verified7Schwab participation rate averaged 87% in administered 401(k)s 2023
Verified815% of workers participated in multiple retirement plans per EBRI 2022
Verified9Vanguard solo 401(k) plans grew 20% to 45,000 in 2023
Directional10Fidelity reports 92% participation in plans with auto-escalation features 2023
Single source11BLS NPS shows 40% participation rate among private industry workers 2022
Verified1255% of state/local government workers covered by pensions per DOL 2023
Verified13ICI IRA ownership at 35% of U.S. households in 2023
Verified14Vanguard 403(b) participation rate 75% in 2023 plans
Directional15Fidelity small business 401(k) participation 65% average 2023
Single source16EBRI finds 68% of Gen X in employer plans 2022
Verified17DOL EBSA reports 89 million covered by private pensions 2023
Verified18Schwab SIMPLE IRA participation up 12% in 2023
Verified1962% of full-time workers had retirement coverage per Census 2022
Directional20Vanguard reports 28% of plans offered Roth options with 18% uptake 2023
Single source21Fidelity HSAs used for retirement by 20% of participants 2023
Verified22ICI total DC plan participants 100 million+ in 2023
VerifiedPlan 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
149% of U.S. households have no retirement savings per Fed SCF 2022
Verified2Northwestern Mutual study: 51% fear outliving savings, average gap $138,000
Verified3EBRI Retirement Confidence Survey: 54% Gen X not on track for retirement 2023
Verified4Fidelity projects $1.6 million needed for comfortable retirement in 2024
Directional556% of Americans have less than $10,000 saved for retirement per GoBankingRates 2023
Single source6GAO reports 48% of households age 55+ have no savings 2023
Verified7Transamerica: Average expected retirement age 67 but 57% save <10% income
Verified840% shortfall in retirement income projected for near-retirees per SSA
Verified9Vanguard: Only 24% on pace for target savings rate in 2023 plans
Directional10Fidelity: Average worker on track for 77% of retirement goal in 2023
Single source11EBRI: 53% of early Boomers have savings replacement rate <50%
Verified1264% of retirees spend more than planned first year per Natixis 2023
Verified13Urban Institute: Median retiree net worth $289,500 but 25% below poverty line risk
Verified1471% of pre-retirees have no long-term care plan per AARP 2023
Directional15Morningstar: Savers need 15x salary at 67, average at 7x per 2023
Single source1637% of workers have no DC or IRA savings per Fed 2022 SCF
Verified17TIAA Institute: 44% at risk of running out of money in retirement
Verified1828% of Americans retire with debt averaging $94,000 per 2023 study
Verified19EBRI RCS: 88% desire comfortable retirement but 36% no plan
Directional20Fidelity gap analysis: Women need $1.3M, have $700k projected 2023
Single source2145% of households near retirement have <$100k saved per Census 2022
Verified22SSA trustees: Social Security covers 40% replacement, need 70-80% total
Verified23Vanguard: 50% of participants under-saved by 30%+ of target 2023
Verified2462% of non-white workers expect shortfall per Transamerica 2023
Directional25Fidelity: Men projected 82% of goal, women 74% in 2023 analysis
Single source26GAO: 29% of older adults have no retirement savings 2023
Verified2755% of millennials fear not retiring comfortably per Natixis 2023
Verified28EBRI: Projected income replacement 52% for average worker 2023
Verified29TIAA: Women face 30% larger shortfall than men in retirement
Directional30Vanguard balances grew 19% but 40% still below target multiples 2023
Single source31Fidelity: Average 9x salary multiple at 67 vs 10x needed 2023
VerifiedRetirement 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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