this post was submitted on 14 May 2024

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FIRE (Financial Independence Retire Early)

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Average Retirement Savings Balance by Age (money.usnews.com)

submitted 5 months ago by [email protected] to c/[email protected]

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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?

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[–] [email protected] 2 points 5 months ago (1 children)

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.

[–] [email protected] 3 points 5 months ago

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.