Most People in Their 50s Have This Much in a 401(k). How Do You Stack Up Against Your Peers?

When a 401(k) equilibrium starts to substance much than a bragging point, radical successful their 50s statesman paying attention. This is the decennary erstwhile status savings should beryllium strongest and the stakes highest.

According to Empower data, the mean 401(k) equilibrium for radical successful their 50s is $635,320. That looks coagulated until you spot the median equilibrium of $253,454. The median is simply a amended reflection of what a emblematic idiosyncratic successful their 50s really has due to the fact that it is not pushed upward by a fewer precise ample accounts.

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People successful their 50s are capable to prevention much than younger workers. For 2026, the worker publication bounds for 401(k) plans is $24,500. Workers who person reached property 50 tin lend an further $8,000 arsenic a catch‑up contribution. That means idiosyncratic successful their 50s could lend a full of $32,500 successful 2026 if they instrumentality afloat vantage of some limits. Workers who are betwixt property 60 and property 63 and whose program allows it tin adhd up to $11,250 successful catch‑up contributions.

If you measurement your advancement by the mean equilibrium alone, it tin consciousness similar you are doing well. But the median shows that galore radical are acold beneath that average. And erstwhile you deliberation astir status costs, the median becomes adjacent much important.

The mean U.S. household spends much than $78,000 a year, according to Bureau of Labor Statistics information released past month. A 401(k) equilibrium of $253,454 would beryllium gone successful a fewer years without different income sources. That is world for galore radical successful their 50s who person not aggressively saved.

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So what tin idiosyncratic successful their 50s bash if they are beneath the median oregon consciousness behind?

For higher earners who already deed the yearly publication limits, immoderate 401(k) plans connection a strategy called the mega backdoor Roth. This allows other after-tax contributions that tin beryllium rolled into a Roth relationship for tax-free growth. It's not disposable successful each plan, but if yours allows it, it tin fto you sock distant thousands much each year—well beyond the $32,500 limit. It's 1 of the fewer ineligible ways to bypass Roth IRA income caps and shield much wealth from aboriginal taxes.

Look beyond conscionable a 401(k) account. Some status investors are utilizing fractional existent property concern done platforms similar Arrived to physique passive income from rental properties with arsenic small arsenic $100. That benignant of diversification helps make a 2nd income that does not beryllium solely connected banal marketplace returns.