Here are just the number for all of you degenerates who just want some milestones for your spreadsheets.
Average total retirement savings by age:
- <35 - $49,130
- 35-44 - $141,520
- 45-54 - $313,220
- 55-64 - $537,560
- 65-74 - $609,230
-
=75 - $462,410
Average 401k balance by age:
- <25 - $5,236
- 25-34 - $30,017
- 35-44 - $76,354
- 45-54 - $142,069
- 55-64 - $207,874
- 65 and older - $232,710
And retirement savings targets from various advisors:
Fidelity:
- 1x by 30
- 3x by 40
- 6x by 50
- 8x by 60
- 10x by 67
Rowley:
- 1x by 35
- 5x by 50
- 7x by 70
Anyway, do you like metrics like these?
I think it’s a decent metric. The important thing to know is that no single guide is going to work for everyone, everyone has to adjust it to their situation.
Me, for example, I have a 401K balance of zero. Every time I leave a job, I roll that over into my IRA, then into my Roth. I just like having control over my accounts; 401Ks have too many restrictions. But to each his own.
Same, I convert to Roth a little at a time to control taxes. I’m in the 12% bracket, so I convert up to the end of that bracket at the end of the year.
That said, 401l does have some advantages over an IRA, such as backdoor-Roth compatibility, legal protection from lawsuits, and the loan option. I don’t need any of that, so I roll out ASAP.
So for those kinds of metrics, I just use the aggregate of all of my retirement accounts, so IRA, 401k, HSA, and taxable brokerage. I’m assuming most people only use their 401k or aggregate as well.