Title: The Typical 401(k) Savings for Retirees at Age 65 and Beyond
Title: The Typical 401(k) Savings for Retirees at Age 65 and Beyond
Hey there, bud! When it comes to retirement savings, the 401(k) is the star of the show in the US. This nifty little retirement account allows you to stash away dollars for your golden years, all while getting a sweet tax break. You can lower your taxable income by contributing to your 401(k), making it a win-win situation.
So, how does your 401(k) balance stack up against your peers over 65? According to the 2024 "How America Saves" report by Vanguard, the average balance is a tidy $272,588. But remember, averages can be misleading, and there might be a few outliers pulling those numbers up or down. In reality, the median balance for folks over 65 is $88,488.
But how much should you aim to have in your 401(k)? It's a tricky question with no one-size-fits-all answer. Retirement goals and living expenses vary from person to person. However, a common rule of thumb is to have around 80% of your last year's income in retirement. Let's say your final salary was $80,000; you'd want around $64,000 per year in retirement. And if your swan song salary was $100,000, you'd be eying a retirement income of $80,000.
To reach your retirement goals, it's crucial to manage your finances wisely and save as much money as possible in your 401(k). Regularly reviewing and increasing your contributions can help you accumulate a substantial retirement fund.
In the event of an unexpected financial situation, having a healthy 401(k) balance can serve as a safety net, ensuring your retirement plans remain on track.