This Is the Average 401(k) Balance for Ages 35 to 44

Are you a 40-year-old trying to figure out where you stand financially compared to your peers? There’s a great deal of variance at this stage of life. Incomes are just now starting to become healthy for most of this crowd, meaning you may not have had much of a chance to save up some money. Odds are good you’ve had to choose between buying a house or tucking something away for retirement.

With that as the backdrop, here’s a look at the average 401(k) balance for folks between the ages of 35 and 44.

The number(s) in question

The data comes from mutual fund company and retirement plan administrator Vanguard Group. Its most recent “How America Saves” report indicates that the average 401(k) account for the 35- to 44-year-olds participating in its workplace retirements plans is worth $91,281.

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This number comes with an important footnote, however. That is, it’s skewed markedly higher by a small handful of very big accounts. Vanguard’s number-crunching also indicates the median 401(k) balance — that’s the value of an account at the midpoint of all the accounts in question. The median for this age group is only $35,537. That means half of this crowd has saved even less for retirement. Of course, it also means half of this crowd has saved more.

Spend the next 20 years even more wisely

You’re doing better than your peers? Great, but don’t gloat. You could still fall short of your ultimate retirement savings goal. Remember, you’ve only got about 20 more years’ worth of work left to build your retirement nest egg. It seems like a lot of time, but it can pass quickly. Don’t let up now.

If you’re instead trailing your peers’ retirement savings, that’s OK, too. Again, you’ve got the same 20 years to go. That’s enough time to catch up. Just don’t squander it. Make a detailed savings plan that’s more aggressive than your current one, even if it requires personal spending cuts. It will be worth it two decades from now.