Average Balance

[Handballer]

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[dhstdog]

Very interesting read indeed, thanks for sharing. Scary...

 

[Viva_La_Migra]

I like that I'm 44 and I have already beat these numbers. I have done the calculations and I'm ahead of my cost estimations for retirement. But the best laid plans.....

Glad you didn't finish that last sentence. Don't wanna jinx yourself!

 

[Birchtree]

If someone could keep their adjusted gross income under $70,700 they wouyld be in the 15% tax bracket - that means capital gains and dividends are tax free.

 

[Viva_La_Migra]

I think "average" looks WAY too low. I want enough in mine to live off the interest in an investment account. Anything else I get (federal retirement or social security) is just extra. I'm on track to make it by minimum retirement age in 2023. I wish I had enough to take the VERA VSIP I was eligible for three years ago! We could go with 25 years of service at any age. I called my father and said, "Hey Dad! I'm only 43 and I can retire!" He replied, "Shut up." I don't think I could have lived on $20K a year though (after paying taxes and the early withdrawal penalty).

I want enough in my Roth account to be considered a 1%er...and the Libs can't do a THING about it! Then again, I don't trust them to NOT change the rules and tax me again!

 

[CrabClaw]

I like that I'm 44 and I have already beat these numbers. I have done the calculations and I'm ahead of my cost estimations for retirement. But the best laid plans.....

Me too, and I'm 40. I am keeping my foot on the gas too.

 

[Frixxxx]

I like that I'm 44 and I have already beat these numbers. I have done the calculations and I'm ahead of my cost estimations for retirement. But the best laid plans.....

 

[NiteFlyer]

I think "average" looks WAY too low. I want enough in mine to live off the interest in an investment account. Anything else I get (federal retirement or social security) is just extra. I'm on track to make it by minimum retirement age in 2023. I wish I had enough to take the VERA VSIP I was eligible for three years ago! We could go with 25 years of service at any age. I called my father and said, "Hey Dad! I'm only 43 and I can retire!" He replied, "Shut up." I don't think I could have lived on $20K a year though (after paying taxes and the early withdrawal penalty).

 

[Rustynutt]

Feels good to be average, especially at an early age
Fish will fear me soon.

 

[James48843]

Listening today to Greg Long on Federal News radio, he mentioned that the average TSP account is now just a little over $80,000 when you take into account ALL federal employees. He did not elablorate on "based on age", etc. He said that was slightly higher than the private sector 401(k) number.


So I did a quick check on private sector, which does have some data on retirement savings by age. Here is an article from AARP that lists 401(k) balances by age:

AARP




Older Workers’ 401(k) Balances Hitting Record Levels

November 9, 2012 by Carole Fleck If you’ve contributed steadily to your 401(k) and didn’t get scared off by the down economy and the wild swings of the stock market, chances are you’re being rewarded now.

The average 401(k) balance reached $75,900 at the end of the third quarter, an 18 percent increase over a year ago, a new study by Fidelity Investments has found. That was its highest level since the company began tracking this data 12 years ago.

The news was even better for older workers: average balances were higher. Since most of us are interested to know how much others are stashing away, here’s the average balance broken down by age:
•50 to 54 $110,600
•55 to 59 $132,500
•60 to 64 $130,700
•65 to 69 $134,100
•70-plus $125,200

What’s more, the study found that the older the plan participants were, the more they contributed. When it came to people in their 70s and older, it turns out that they socked away higher percentages of their earnings but still saved less than younger age groups, apparently because their wages were lower. It wasn’t clear if that was from working fewer hours (maybe part-time or phased retirement) or due to other factors.


So much much did workers save? Those 50 to 54 contributed an average 9.1 percent of their earnings ($7,530); people 60 to 64 saved 10.6 percent ($7,970); 65 to 69 11.4 percent ($8,010); and 70-plus 12.1 percent ($6,750). (Experts often recommend that contributions–your own money plus any employer match–equal 10 to 15 percent of your pay.)

Not surprisingly, older workers who had contributed to their 401(k) plan for 10 consecutive years had the highest balances.
Here’s that breakdown:

From 50 to 54 $ 223,500
From 55 to 59 $ 250,000
From 60 to 64 $ 233,700
From 65 to 69 $ 228,200
From 70 and up $ 230,000

To come up with these figures, Fidelity analyzed 12 million 401(k) accounts in more than 20,200 corporate defined contribution plans.

More from AARP:
AARP » Blog Archive » Older Workers’ 401(k) Balances Hitting Record Levels

Enjoy.

It's a good benchmarking to see if you are keeping up with where others are.