“Do You Invest?”

“Do you analyze your investments?”

To most of us, this is either the most boring question possible, or a question that strikes fear in us for our future retirement. Lucky for you, taking the time to look over your investments is a deep dive for another day. However, I did just want to leave you with a few facts to ponder.

In this brief article by Investopedia, they show the average 401(k) balance for US adults by age range. It is certainly not a good idea to compare yourself to others. I could look at my Net Worth and be shamed by middle school Youtubers who make millions. However, knowing where you stand when compared to the national average can be helpful information.

Note: For those who work for a non-profit, your retirement account is actually in a 403(b).

Twentysomethings (Age 20–29)

• Average 401(k) balance: $10,500

• Contribution rate (% of income): 7%

Thirtysomethings (Age 30–39)

• Average 401(k) balance: $38,400

• Contribution rate (% of income): 8%

Fortysomethings (Age 40–49)

• Average 401(k) balance: $93,400

• Contribution rate (% of income): 8%

Fiftysomethings (Age 50–59)

• Average 401(k) balance: $160,000

• Contribution rate (% of income): 10%

Sixtysomethings (Age 60–69)

• Average 401(k) balance: $182,100

• Contribution rate (% of income): 11%

Seventysomethings (Age 70–79)

• Average 401(k) balance: $171,400

• Contribution rate (% of income): 12%

One thing to keep in mind is that the average balance is actually higher than the median income. This is due to those with high incomes maxing out their 401(k)’s each year.

At the school I work at, we get a 3% match, which for those just starting out on our payscale equates to a little over $100 in “free money” through the match each month. Even for those who are maxing out their salary at $80,000, just under $200 per month is provided by the district. What this essentially means is that just relying on the match from an employer will not be enough. You need to take some initiative, and this all starts with having a budget.