Average 401k Balance by Age 65 | PLUS # of "401k millionaires"

This video discusses the average 401k balance by age 65, both by mean and median. It also discusses the number of 401k millionaires in the United States.
Important Links:
Free "Retirement Ready" Checklist:
holyschmidt.co...
Federal Reserve Board Survey of Consumer Finances:
www.federalres...
Social Security Administration Application for Benefits
secure.ssa.gov...
Current Social Security Cost of Living Adjustment
www.ssa.gov/cola/
Social Security Payment Estimator
www.ssa.gov/be...
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.

[@ryanwilliams989]

It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.

[@StellaMaris-lv2uq]

For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.

[@hunter-bourke21]

It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.

[@maggysterling33254]

@@hunter-bourke21 Interesting. I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.

[@hunter-bourke21]

Not exactly, I started out with a financial advisor called *Camille Alicia Garcia* Her honest approach gives me complete ownership and control of my positions, and her rates are incredibly affordable given my ROI. However, do your due diligence before contacting a financial advisor.

[@BiancaSherly-qt6sb]

oh! i never take this advises online seriously, but i checked CHRISTINE up out of curiosity and i must say i am impressed by her Credentials. i emailed her already, waiting on her response

[@alfredalbert8037]

I’m a dividend investor, my wife and I have invested in the s&p500, both through my TSP with the government and through fidelity in her 401-k. Cashed out 370k from the S&P and invested with a full service broker.. Until about 3years ago we were 100% in the s&p after over 30 years. I’m retiring at the end of the month at 59, while my wife will retire next year at 54. We currently have 5.7 million in our tex deferred savings.

[@alfredalbert8037]

Our Fin_ancial advisor is “ Gary Andrew Debellis “. He is a professional fin_ancial/Invest_ment advisor. you can search him up on the internet where you can get necessary info about him and as well to connect with him.

[@alfredalbert8037]

@Thomas Freddy Gary Andrew Debellis

[@alfredalbert8037]

@Mark Tilbury Sure! he goes by Gary Andrew Debellis, you can search him up on the internet where you can get necessary info about him and as well to connect with him.

[@blackgrandpa7652]

Good job

[@svencejohanson9051]

You rule.

[@stuartjames1862]

Nice content! The best way to find that balance between saving and living is by investing, This way you get to have your saving intact and then live comfortably off the revenue coming in from your investments.

[@devdaniel3225]

wow! this is a jewel. the best comment i've ever come across on YT. Why didn't i ever think about this. Thanks for this, I'd also really appreciate if you give me some tips/guidelines that would guide me on the right path to take while investing

[@stuartjames1862]

I’m not in a position to guide you, You just got to find the best investment and find a strategy that works for you or better still find yourself an investment adviser who'd help you trade and control your portfolio, with their knowledge and experience you’d earn very good revenue.

[@henrygarcia1792]

This seems more like putting your savings in an investment company rather then the bank, hmm really ideal i think because you'd earn a better revenue than the annual interest value you could get while saving in the bank. WOW! this is really an eye opener, could you recommend an IA please? I would really appreciate that. Thanks so much for this.

[@veramonique1724]

Few years before I got to decipher the market myself I worked with an IA TAMARA DIANE HAGAN. She traded my $90k portfolio into $220k and I learnt a lot of things I know today from her.

[@henrygarcia1792]

Please How can I get across to her?

[@purselmer5931]

It's at 4:34 and it's at 65 the average is $216,720. You're welcome.

[@videoettaceo8900]

Thank you!

[@threelinesonly7344]

Thanks

[@wheelie642]

OMG thanks!!

[@hollyb6885]

Yikes. That’s not a lot.

[@dylandobbyn6308]

You are the MVP. I used the 4:34 you saved me to make a few more notes. Median of accounts is $64,548. Only 1.6% of accounts are over 1M. Only 32% of the workforce even has a 401k.

[@threetoyotas]

I’m not a big income earner and in my early 40’s. I’ve just been chugging along and just crossed the $700k mark in my 401k. It will be exciting the day I cross the million mark. Been with my retail company for 20 years and I’m hoping to retire in my early 50’s.

[@iarocks44]

You are a perfect example of why saving early is so important. Well done! You should be proud of this accomplishment.

[@curtthrasher5599]

I only have 2 toyotas.. but you followed my path and i can tell you you'll be at 1 million in the next year or two. Great job. It would of been this year with the previous administration..I had 29 years retail and retired at 56. It's easier if your house is paid off first and be careful with the current administrations policies.

[@threetoyotas]

@@curtthrasher5599 - Haha. I actually don’t own any Toyota’s anymore. Not sure if I can change my KZbin name. However I can proudly say we bought a 2020 Performance Tesla and a 2021 F150 with cash from stock I’ve pilled up over the years. Definitely still have a mortgage though. With such a low interest rate I’m not concerned about paying it off. My retirement date is more age based due to my wife’s teacher pension. 30yrs puts us at 53. I may work until 54. Only because once I hit that, I can use the Rule of 55 to access my 401k penalty free. Doing a 72T is still on the table but can be tricky. And I completely agree with the political parts you mentioned. But I also like buying things on sale, like stocks. Lol Congrats on your early retirement! I at least have goals and if I can’t retire within the time frame I mentioned then oh well. I’ll just work a smidge more.

[@mrguymandude1096]

@@threetoyotas good job! Yes you can change your YT channel profile name. It will go back and change the name on all your comments too. Maybe, 200Teslas or whatever.

[@dancalmpeaceful3903]

Congrats....what you think a "big income earner" is relative. To me, a big income earner is 90 grand or more annually, especially if you ARE NOT in an expensive city like LA, San Fran, Chicago, NY, etc. 100 grand in Cali barely keeps you from living in your van. 700 G's is outstanding frankly - be proud. You'll get to the 1 mil...believe me.

[@jeanettegriffin772]

I have just over 270.000 in my late husband's 401k. Since he was the main wage earner. I feel pretty blessed. I'm 59 1/2 and raising my disabled granddaughter. The finance guy recomended to start drawing off it at just under 1000 a month. I also own my home. And I plan on drawing on my late husbands death benefit at 60. Like I said I feel very blessed. He was a wonderful man.

[@meluk6991]

What a blessing 🙌. Thank you for sharing your awesome story with us. Good luck with everything. May your husband rest in peace!

[@spicycopper2436]

Thank you for your informative vids. I am always surprised by the numbers. I tried to inform coworkers the benefits of doing the company's matching amount in their 401k. Years later, I was surprised to learn that many didn't do it. One of my friends waited 10 years before setting up her 401k and getting the free matching dollars. She made 6 figures. What a loss of 10 years of free money and growth.

[@HolySchmidt]

Believe it or not, sometimes people just don't think about it.

[@michaeltorrey3603]

@@HolySchmidt That was me in my youth. I was living paycheck to paycheck, just trying to make it in the present.

[@Bobertchin]

Matching is free money! I don't get why people don't take advantage of that every single time. I do understand that some people simply can't. They need that money. But if it's at all possible, get that match money.

[@rajutvs]

Have seen quite a few of my friends do this. They thought they will leave the country or cannot take money out of 401K so never invested or did it . Guess what their plans changed and now all of them are staying back but not much of investments to back on

[@henrycarlson7514]

@@Bobertchin So thankful that when my company came out with the 40q (k) I was able to partisipate and take the 5% match. If there was no 401(k) I could not have retired but there was so I did

[@harryl7946]

What worries me is how much I will need to survive. Anything over that is gravy. I like gravy!!! 🥰 Thanks Schmidt!

[@davidsiemer7578]

Well said and broken down with sensible numbers. I’ve only saved $75K in my 401K at 60, but I’ve got 5K a month in pensions so I’ll be fine

[@meluk6991]

Awesome. $5k a month is pretty nifty. Cheers!

[@alansach8437]

The pension is an endangered species!

[@pandabearoceanpark]

What kind of job did you do to have such a great pension?

[@efzapp5457]

I knew we were in good shape with the house and cars paid off and no outstanding CC balances but now I see how blessed we are with over a million in our 401K's, pensions and annuities. Plus, we live rather simply. My husband will retire next year; I am already retired. We don't need/want the sports car or a world cruise; just a camping trip in a national forest for us.

[@jeffreylines1535]

I've always thought I was above average, now I know...(joking folks!) I'm 51 and have tried to put my raises into a 401k as often as I could since I was 20 and now I am really seeing the benefits of saving early and often. I never thought I would say this but I am starting to think I may actually be able to afford to retire and relax a little before I leave this world.

[@dereka8041]

48 here, and my plan is to be fully retired in eight years, if not sooner.

[@oldcountryman2795]

@@dereka8041 Why? You must lead a very boring life.

[@PecanRanch]

@@oldcountryman2795 Because he doesn't like his job? I made great money working, but I hated my job and employer. I retired at 45.

[@noureddineelalam1501]

@@oldcountryman2795 Retire does not mean he won't work. It just mean that he does not have to work. He might still work, knowing that he does not have to or that he works on his own terms. That's the greatest feeling.

[@johnlinn9297]

That’s what I thought. Retired at 59 two years ago. Between Death in family, Covid, and hurricane, still waiting to start enjoying. And the Biden regime is trying their best to destroy what I’ve worked for, or tax it away. Vote Republican.

[@Bulldog-vc7ho]

Great video, I was raised to invest first then live with the money I have left over. I’m 56 and I’m well above the 1.6% and looking to retire in the next 12 months. Looking to take SS at 62. What concerns me is our political environment and the fact that many many people have not saved and those of us that have saved and planned will be penalized for doing the right thing so that those who did not can benefit from their lack of planning.

[@troyholl99]

I hear you!

[@Boobtube.]

the lazy and the poor always seem to get a helping hand from the govt.

[@Boobtube.]

why are you taking SS at 62? why not wait till 65 at least? You take to much of a hit at 62.

[@mikenewell5683]

I've had same thoughts.

[@nobodynoone7271]

@@Boobtube. getting it early or later usually works out pretty closely. It depends on your family health history, health, and desires.

[@rickhicks6833]

One of the most complete discussions on 401k's and retirement ever. Great job. Shocking that so many of those who have a 401k available aren't taking advantage of them.

[@Nopeandnope3861]

I wonder who they think will take care of them

[@jamiecrawford8133]

@@Nopeandnope3861 social security will be it. Talk to tons of these people at my job every day.

[@bgood4449]

It is really good to know that after years of saving and maxing out the 401K, you are a member of the 1.6 percent who are in that group. The key in addition to maxing out if you can, is to also enjoy your life. This a lofty but attainable goal- start early and don't try to keep up with neighbours.

[@HolySchmidt]

Thanks for the comment

[@robertdinicola5834]

This is great stuff. In my opinion all financial planning matters should be taught in High School and then in college to truly round out all of us to prepare for life. I am a financial advisor and love these podcasts. Jeff is one of the best.

[@danielsanders5997]

It is a scandal that financial planning is not taught in our schools. No wonder only a third of workers have retirement accounts, and these accounts have a median balance, at age 65, of about $64,000.

[@Yodumeee]

Math isn't even taught in our schools. Not taught well anyway

[@sosmra]

That is a great idea it will boost the future earners and lighten the load for S.S.

[@keithallen3119]

I am a boomer and I guess lucky that my high school taught finacial well being back then. Made a big impression and put me on the road to saving from day one along with professional CFP support. Came from a lower class situation (father died early and pushed us downward in income) to being well off. How? Working hard, bettering myself in the job market, moving around the country to get the best job possible for my career, and that path paid off. Left the rat race at 60 a few years ago and it's been good. I see so many that spend all or more than they make with no regard to the future, then want the rest of us to pay for their bad decisions. I believe in supporting those in society who "can't" (disabled/vets/elderly/etc) and of course reasonable amounts for shared services we all need, but not for folks who put themselves in dire situations because of their choices. After watching for 6 decades I can opine that the leftists/liberals are insane.

[@jrg4094]

It's not taught on purpose. By keeping people in debt, financially unstable and uneducated keeps people right where they need them.

[@Five0Music]

Straight info, to the point. That’s what I like about your videos. Also, I like that you neither make accusations or excuses for those who are NOT saving when the 401k or other savings vehicle is available. Your numbers match my experience, where the vast majority who could save didn’t. I certainly didn’t save as much as I could have, and probably should have.

[@drdotter]

Retired at 56 with $1.2M in 401k, and with a good pension. I thought I was a little better than average. Nice to know that I'm doing great compared to everybody else. Also, I'm planning on taking SS at 62. I figured the break-even with yearly increases and earnings is about 22 years. I'll probably live longer than that (family history and taking good care of myself), but you never know. So, a bird in the hand, and such!

[@jumjum55]

Go for it, if your pension+ SS payment,+ 4 % from your 401K = your current salary.

[@M5guitar1]

I'm in a similar situation. I retired at 61 with a pension and a large 401K. I feel blessed compared to others also.

[@SB_McCollum]

I'm going to start SS at 62 also, I'm concerned that the rules will change again and an early start won't be possible otherwise.

[@MrMiniPancakes]

Can I have a loan?

[@drdotter]

@@MrMiniPancakes Sure, but the interest rate and required collateral may be more than you can afford.

[@Joepacker]

My wife and I have been saving in our 401k's for over 30 years and I've invested it in aggressive mutual funds the entire time as I knew retirement was years away and I could handle the ups and downs of the market. But the number one reason we will be able to have 2 plus million by the time I retire in 5 years is because we lived within our means and did not buy expensive stuff we did not need. We have not lived like hermits by any means, just smart.

[@mocheen4837]

I am in the same boat as you. Approaching 50 and have close to 2 million saved. Hoping to be able to retire with 4 million. Will be able to use the catch up option in a couple of years. Living check to check and saving as much as possible. I know people at work who do not save one dime at age 50. They rely on the government. I also have 1.4 million in home equity. Looking for a second house to use as a rental property. It is not easy to stay within your means when you see everybody on social media vacationing, eating out and buying fancy cars.

[@bantheshift]

I’d like to ask you both then…is it worth it? I’m 36 and saving. I am torn between saving for retirement and enjoying life now. I mean once I’m 65 how exciting can life actually be? At that point I have …what? 10-15 years left before I die? Only more if I am lucky? So I think to myself jeez might as well enjoy my life now while my body feels fine and I have no health issues than save save save only to enjoy that savings at the last years of my life when I probably wouldn’t have the energy to do a lot of things. I’m sorry I don’t mean to be disrespectful and call either of you old, but I truly am curious as to how you feel about it. I also keep telling myself regardless if I get to enjoy my retirement or not, or if I die earlier than expected…all this savings can go to my son and will better his life exponentially. And to me that’s worth it.

[@glasshalffull2930]

One of the biggest advantages of forgoing the fancy car, etc in order to save is that when you’re old you won’t have to worry about money. I’m not saying don’t travel and enjoy life, but balance your needs with saving. Since I lived ‘somewhat’ frugally, I was able to retire at 55 and without a financial worry. Of course not everyone can swing this financially. I’m now 63 and my wife and I hike and travel and enjoy sailing. No grandchildren yet, but that’s a big part of older people’s lives. True though, my scuba diving days are probably over, but I still enjoy snorkeling.

[@DragonYang01]

​@@bantheshift The definition of worthiness has to do one's value system. My wife and I live frugal lives with great enjoyment and senses of accomplishment because we don't need fancy material things. We seldom ate out because we cooked far tastier and healthier food at home, often together. A side benefit is that our sons grew up thinking we were poor and did well in school and now have high earning jobs without any bad spending habits. When they were young, we went camping for vacations so they enjoyed nature more than other kids. I am 65 years old now and was able to move on a new career in a law firm after 30+ years in engineering management. I don't need any more income but still work for enjoyment and connection/contribution to the society. Life is wonderful at old ages if you remain young inside and have absolutely no worry about money. Our house in Bay area was long paid off and we have another two rental properties along with >3M$ retirement money. Our tenants live more luxury lives than us. But, any economy downturns might bring hardship. I just don't see how that is more enjoyable.

[@bantheshift]

@@DragonYang01 I appreciate you for replying, thank you!

[@dougm1985]

i started investing in a 401k in my early 20's i was told to invest 6% and at 65 i should have 1 million. over the years, i've had 3 jobs. i cashed one of the accounts in. for 7k (mistake) the other i rolled into my present account. i'm 55 now, and i will have 1.2 million at 65. that is if i don't retire early.

[@lockman004]

My corporate job was eliminated due to the pandemic but for 28 years I maxed my 401K while living a frugal debt free life. I was concerned about finding a new job at 65 years old but my financial advisor let me know I was in the top 1% of 401K accounts and finding a job was optional. I've been very lucky and I found jobs where my employers paid for my college degrees saving me from the burden of student debt. I'm worry about some of my friends and relatives that have less in savings than the debt on their vehicles. Until my most recent new SUV I've always driven used vehicles that I repaired myself, avoiding the vehicle debt trap. And the biggest saving was never paying for a divorce. So many people I know got wiped out from more than one divorce. The point is max out your 401K, avoid debt, get someone else to pay for advanced education / training, and avoid bad relationships and divorce. The rest is a piece of cake!

[@meluk6991]

Sounds like you made it out okay. Good on you. Cheers.

[@davehachey3888]

Thanks for sharing this information, sort of scary really. There are too many people in this country without the means to retire comfortably. Based on the comments below, most of your viewers (like me) are above the 1.6% class you mention. I adopted your "save often, save early" advice when I was in my late 20s and had completed my graduate training and entered the work force. It has served me well. Please keep posting these videos, perhaps they will reach the folks who really need to learn this lesson.

[@DavidMiller-du9dy]

if you want to build a portfolio that beats the market, you've generally got to be willing to put in the work, take risks, research investing, and be willing to hold for the long run, even if prices don't go your way for a while.

[@hulkarmstrong8471]

There's nothing like receiving some extra income every month.

[@kumarvenkatesh6600]

Dividend stocks are an excellent source of supplemental income at all times, most people just wanna buy any growth stock they hear about.

[@emiliobarretto9732]

Most stocks has underperformed lately.

[@billnolan5375]

With so much volatility in key stocks, it’s kinda hard knowing which stocks will do great or enhance ones portfolio.

[@liamjohn2756]

@@billnolan5375 There are great stocks in the market with big room for growth, you gotta be a consistent investors with a steady approach, you should be able to seize opportunities created by the uncertainty.

[@chessdad182]

I'm in countdown mode. Under 12 months is my plan.

[@HolySchmidt]

Exciting times! Best of luck.

[@Bulldog-vc7ho]

Awesome i’m down to 10 months can’t wait, just tired of the corporate grind and this past 15 months with COVID has put a lot into perspective

[@TopVillain]

That is astoundingly low. We are in major trouble as a society.

[@mysidestitches]

I’ve always wondered how I couldn’t afford the same vacation trips my friends were going on and have always driven low to mid range used cars. Oh that’s right. Because I was putting in 15-20% to my 401k. Now that I’m 57, I see the results in my 401k. Scary to have just $64k at 65.

[@scotttracy9333]

Delayed gratification always wins in the end 👏

[@yarnchickenkim]

Don’t wait too long to enjoy some of that savings, though. After my mother died at 60, I decided I would save to retire much earlier than full retirement age. I’m glad I saved also.

[@mocheen4837]

Most of my coworkers do not save for retirement or own a home. They love to party, vacation, eat out, shop, and lease fancy cars. They make fun of me because I am frugal. We have catered food at work most days. I take the leftover food home as it generally comes from nice restaurants. Normally, I take home trays of sushi, bbq, burgers, sandwiches, salads and desserts. I give the food out to family and friends. It saves us a ton of money plus we get to try new foods out. People at work frown on leftovers. My office provides coffee, soda , juices etc. My coworkers go to Starbucks or Mc Donald’s citing better coffee and say sodas are better from the fountain. I say free tastes the best. I probably take home over $7,000 worth of food each year. Otherwise they toss it in the trash. We would order a dozen pizzas but only serve 6. I would take six whole pizzas home with wings and salad. Good for my kids to snack on after school.

[@jumjum55]

Add more for next 8 years, invest in growth companies that pay at least 4-5% dividend and have increase the dividend every year in last 10 years at least 10 % a year. I just retired and my retirement income is 1.25 x of my last salary and that is without selling my portfolio.

[@gunnikr]

@@mocheen4837 Where do you work that has so much money to spend on food? I worked for a Fortune 500 company that would have us bring in our own pens if they could 😂

[@kwaichangcaine8234]

Thanks for the video sir. I'm 60 and I am working hard to catch up on investing for my retirement. There was quite a few years I didn't contribute as much as I should have.

[@harryl7946]

Welcome to my world! Hit it at 15% 401k durning the beginning but backed off later. Now - 8% to max out yearly on the Roth. Running out of time. I am 62 now.

[@kwaichangcaine8234]

@@harryl7946 Keep up the good work, I've also been hitting the roth pretty hard over the last few years maxing it out for the last four . Best of luck and let's hope sleepy Joe doesn't completely destroy the value of our dollar.

[@darrelllee2107]

Wow. Thank God you're not a preacher. You have a voice that could put a meth-head to sleep. It's very soothing and just makes everything feel so peaceful. Okay. Voice aside, thank you for sharing this excellent video with lots of great information! I have subscribed so that I can see more content. Excellent.

[@katherinewas4896]

Good to know I am ahead of both the mean and median at age 54 by a whole bunch

[@johnzimmerman340]

With the average Social Security benefit of $1500 at age 67, we are going to have a lot of elderly people living in poverty and even homeless.

[@robedmund9948]

Going to? We already do. When people rely on the government to solve their problems they are more often than not very disappointed.

[@kwfannin]

@@robedmund9948 Government has never solved a problem only created them. I agree. Take care of yourself. US deficit grows by $ 200 BILLION every day. That's problem solving !

[@Sunshine4]

@@kwfannin Maybe not 100% of the policies but they have for sure put forth regulations to harm certain folks.

[@kwfannin]

@@Sunshine4 The 401k has helped me. I'm glad that 30 years ago I took the presentation at my new job seriously. Told us if we followed this advice we could retire as millionaires. That turned out to be true even with 5 more years to grow. Have to wait and see if current administration penalizes me for being smart.

[@mrguymandude1096]

@@kwfannin rando here. Good job saving. Have you ever considered starting to convert your 401 money over to a Roth? You will pay the taxes at todays rate then withdraw down the road tax free. Who knows what the tax rate will be when you start to take distributions. Remember to take distributions from Roth last.

[@mcelroychandler6267]

Well when I got kicked out of my job at 63, I decided to retire with my wife. All my savings had been rolled into Roth iras over the years and because of some really good investments I really hit the jackpot. Still cant believe for a middle class guy that I joined the upper median group of millionaires twice over.

[@petersonkahlid7679]

W • H • A, T • S• A • P • P • M • E • + • 1 • 2 • 6 • 2 • 7 • 7 • 0 • 5 • 9 • 1 • 1 •

[@kwfannin]

Feels good to feel good, don't it ! The little man does stand a chance ...

[@howellwong11]

Right place at the right time. What else can I say.

[@pepster60]

Good info as always! I think the 401k balance mean and median should be taken with a grain of salt. While I do think most Americans have under invested in their retirement, I think some sweep their 401k's into an IRA when they change jobs. As an example, I have over 1.4m in retirement but only $20k in my current 401k. The rest is in my IRA. To your point of how much you need depends on each individual. The bottom line is this; know how much you need each month to pay your bills and multiply by 12. Take 4% of your savings and your Social Security (and any other income) and see if you can live on that. If yes, you should be set, if not, you may want to look at alternatives.

[@perfectly22smith38]

Right! He should have said IRA’s + 401k’s combined.

[@kw7292]

Geoff, 100k subscribers! Congratulations. Enjoy your channel.

[@HolySchmidt]

Thanks KW!

[@melissan9199]

My husband just hit $1.04 million a few weeks ago in his 401k. He’s 43 and has many years left to work. We also have mutual funds, and all three kiddos have 529 plans with a lot in them…once they are done with college we can put even more money towards the retirement. We also have no credit debt, just our mortgage. Oh and live in Southern NY

[@HolySchmidt]

Nice work

[@lkjacob1]

I have been contributing to my 401k since I started working at 18. I am now 58 and have 850,000k between my 3 portfolios. I will not be retiring early as I am waiting until either age 67 (FRA) or when my portfolios combined hit the 1.8 million mark. Whatever comes first!

[@HolySchmidt]

Go get ‘em!

[@williammccaslin8527]

Always ready to hear what you have to say, thx for the vid.

[@deerhaven3350]

I'm 66-years-old and have been with Vanguard since 1996; which was actually kind of late as I entered the workforce in 1976. Still, opening an account with them was the best thing I ever did even if I didn't do it as early as I could have.

[@RandomJane104]

My dad opened one at Vanguard for me in the 1980's. That put me on a good path to investing early. I started investing in the taxable account as soon as I got a part time job, before I was even eligible for a 401K. I still regret I haven't been better at investing as much as I could have but getting an early start hasn't hurt.

[@richardc488]

Thank you Schmidty

[@tfred6403]

The mean and median could be understated. I have a 401k in vanguard and another in fidelity. I wonder how many others have this.

[@teacheschem]

Even if doubled these are still terrible numbers!

[@youngtimer964]

Same for me - one fidelity and one Schwab

[@sdgtata]

Same

[@Fjjfuffnr244]

Although it really might not matter in your unique indivdual case, the biggest problem with multiple 401k’s is the difference in performance and cost of fees. If it were me, I would figure out which performed the best and replicate that 401k at the lower fees company and combine it all. That way i get the best performance and lowest cost at one place. then max the hell out of it and adjust as you age.

[@tfred6403]

@@Fjjfuffnr244 Agreed. My 401ks have been rolled over into IRAs in both Fidelity and Vanguard.

[@ddellwo]

While these exercises are certainly imperfect, I think they do have value as at least a benchmark of sorts for where you stand versus your peers. No matter where you fall on the savings scale, I think everyone has at least some trepidation about how their finances will work out in retirement. However, I look all around me and don’t see old people begging for quarters on every street corner, so it appears as if most folks are able to adapt to whatever their financial reality might be and figure out a way to make it work!

[@HolySchmidt]

Great observation. Thank you!

[@HighCountryRambler]

That's because they are at work... :)

[@Jalahr77]

@@HighCountryRambler I know you said that with 'tongue in cheek', but I have a feeling there's some truth to that.

[@brendafleming231]

@@HighCountryRambler and that's not always a bad thing. I have a meager retirement savings and at first was disappointed to learn I'll need to keep working. That is until I learned some of my peers that retired early are on a very strict budget, sit at home in front of the TV and drink too much. They're bored. I'm doing my best to stay healthy so I CAN keep working. I have a job that I love. I'm single so it's a reason to get up, have a routine, sometimes walk to work, socialize, keep mentally active, maintain the usual benefits (health, pension), and continue to earn $$ to live and have some fun.

[@HighCountryRambler]

@@brendafleming231 you make up a large percentage of people who are happy working. I left a great career that took me all over the world. Yet I couldn't wait to retire. And now with rentals and my property I live on I keep asking how I ever found time for a career? I like to be busy to so i hear where your coming from.

[@e-spy]

This is frightening...how will people live? I thought I was behind!

[@andyrose8642]

My retirement company told me last year at my review that my almost $2m when I retire is likely not enough and I should consider waiting longer to retire. I’m 63 today and hope to retire in about two years and pull only 2.5% per year from my 403B. My SS will be about $2800; I think they just want to charge me fees for a longer period of time to make more money. I enjoy all your videos, very informative.....

[@HolySchmidt]

Thanks for the kind words Andy.

[@kenplummer4644]

Llike what holy Schmidt said ,it not how much is in your 401k its how much you have minus all debt What does warren buffet say, pay off debt (high interest) before you invest

[@ric5210]

Unless your retirement spending is unrealistically high, you have plenty to retire even now.

[@mikeberg5003]

@Andy Rose, what is a "retirement" company?? Do you have a fee only registered financial advisor? If not you should consider it. Also, what anyone's balance is is only relevant to their needs. You say you want to pull out 2.5% of $2m per year and your SS will be about $33,000/year. So the question is: Can you live comfortably on approx $84k/year?

[@bruced.370]

Why only 2.5%??? You're not gonna live to be 200 yrs old. Count on 20 years and that's it. Divide by 20 yrs.....

[@nemoretime7466]

I like hearing what percentage of 401ks are at one million dollars. Since that is a very small percentage what percentage would be at 500,000 and at 300,000? I one heard a particular 401k provider had 13% of their 401ks at $300,000. That kind of feedback is also usefull as a measuring stick.

[@MrGreen-sk3ws]

The average account of a 65 yr old is $216k which is the total sum divided by 5 mil accounts. The median figure is $64k, which means 1/2 accounts are below 64k and 1/2 are above. The median is the more real assessment of where 65 yr olds are ranked. Pretty dismal if your below 64k.

[@stephenwright133]

My 401K is with a company that splits these figures by income and age range. They provide this to give you an idea of what others like yourself are doing and a provide an average contribution rate. These averages don’t tell the whole story.

[@HighCountryRambler]

Glad you preferenced with the other possible assists in the beginning of the video, like rental real estate. We got in the 1.7% group at age 64 by living like we were in the $64K savings group our adult lives. When I see politicians today looking at my 401K as their cash cow I wish I had designated more % to the Roth portion in the early days of investing, now that I'm retired.

[@j.3854]

Great video. I’m all for the 401k. Investing heavily in it. However, I’m 41 and plan on retiring on my cash accounts and E*Trade stock account. Not relying on SS or 401k. I should be retired many many years before SS age. The goal is our 1M house paid for and 1M cash equivalents. The 401k and SS will be icing on the cake. Should be done by 46-47.

[@timtorkelson7201]

Wow! Good for you.

[@holyschmidt9728]

Make sure to stay tuned for next vid, bless❤️. Pro-fits making💰 "Gary Andrew Debellis'' is the coach helping me out Fi-nancially, and you can have an appointment with him through his website, just look him up online to get more info about him also let him know I referred you..

[@mikespangler98]

The total of 401k plus IRA would be more interesting. Most people roll their 401k into an IRA when they change jobs. I did it twice. And then there was the job that did not offer a 401k, so retirement savings went straight into the IRA.

[@karinhart489]

Or roll their 401(k) to an IRA when the retire.

[@mrguymandude1096]

Good point. What is the current average time at a job now-a-days. In 2000 I got a job interview just for having been at my job for 5 years. That was the longest of all applicants.

[@johnsanders3877]

Thank you for that realistic perspective Jeff! Great instruction!

[@weliveinsf]

That's because the majority thinks Social Security is a pension,, a misconception that will land them in poverty. I retired with very generous pension at 62, I put my 403k into a 5 year fixed index annuity, earning 23K a year...I guess I'm way ahead. Good video.

[@rodhoover9158]

Thank you. Excellent period of instruction - as always.

[@JeromeBeeFarm]

I like your video content. Very good info. Do you intentionally move your zoom in and out and white balance changes as well all the time.??

[@michelecurtis308]

I’m very shocked at how low the mean and median balances are for 65 year olds. I started contributing at 40 and I am not 60 yet and I’m way ahead of the group 😀. I sure hope the people with low balances have other options to support them.

[@oldcountryman2795]

They do. Your taxes.

[@rrCHRISxx]

Other options = work until they die (throwing their lives away.)

[@michaeltruglio5554]

I thought the same thing, very surprised.

[@danielsanders5997]

You (and I ) are their other option.😖

[@johnlinn9297]

I retired at 59 with a high end 401k balance according to this; yet it’s a small portion of my net worth. Since I started with nothing at age 19 and am an ultra conservative investor, I’m shocked. I would have thought stockmarket investors would all have huge 401ks.....hmm.

[@LostInThe0zone]

A large problem with this study is that it only considers accounts with one organization.

[@yarnchickenkim]

Vanguard is one of the top retirement investment firms in the country, if not the world, so it’s a good sampling.

[@legiontheatregroup]

Good information and beautifully framed with your thoughtful phrasing.

[@HolySchmidt]

Thank you Roderick.

[@youngtimer964]

I stopped contributing to my retirement account over 6 years ago when I retired. Since then, I’m spending it.

[@RobertErnestLewis]

Compounded Interest with Reinvested Dividends and Capital Gains will be a game changer for you.

[@dyates6380]

I love this channel and all of your videos. I find them very informative and helpful.

[@dorisemone6778]

You're great.Thank-you so much! Everything you present is helpful and easy to comprehend. Be well.

[@drewsbenmad]

The best advice I was ever given was to work smarter not harder and letting your money earn money for you is smarter than just working more. We retired 10 years early and our investments pay us not to work.

[@gustavodiaz4689]

Holly crap that terrible! I was blessed to worked as a social worker at a very young age and I first hand saw the struggle elderly go trough specially with finances. Since then I been busting my tail off to grow my wealth and teach my daughter financial education

[@philburch1970]

...one answer I would be interested in is "How much income can the average retiree expect to receive based on 401k balance if invested at assumed interest rates, or if an annuity is purchased?" also, "What is the average retiree income at 60, 65, and 70?"

[@conniegarcia5005]

I really appreciate all the great information. Thank you!!! 👍😁

[@candidojr7777]

Love your videos, very, very practical!

[@HolySchmidt]

Thank you Candido. All the best.

[@candidojr7777]

@@HolySchmidt Keep that good info coming! I rather know more than less.

[@vinnyg2619]

I think that the info you give us is great! I am one of the people who questioned getting rid of debt - I see that a lot on financial help videos. I just gave a counterpoint which is my way of looking at debt. I agree that drowning in debt is wrong, I did it when I was younger and I know others who are doing it now as well. But there is manageable debt and using other people's money at a good/great interest rate and not over borrowing to get too high of monthly payments. If you need a car and can get low % financing it makes sense to finance it assuming you can afford the payments. As far as 401K balances, I think what others have said is on target. IRAs are not counted which may have more money than a 401K. I can say that our money is mostly in Vanguard funds but they are either in a 401K that uses Vanguard funds (not sure if they counted that) or IRAs that were transferred to or opened in Vanguard. I appreciate the info that you give to us - Thank you for providing it!

[@PlumHealthDPC]

32% of the workforce has a 401K, 68% of the work force does not have a 401K. BUT there are probably a lot of doctors, nurses, and other health professionals who work for a non-profit hospital who have money put away in a 403B account. I'm curious of what percentage of the work force has a 403B account?

[@peteanddrake4242]

I'm 45 and wife and I have $211k in our 401k now. This video makes me feel better as I am targeting 55 to retire--or semi retire. Have about 150k in home equity....but still have kids college and weddings ahead.....

[@chuck5553]

I honestly don’t have a clue…I’m 55yo…I get a military retirement of $2300 a month (no VA yet) health insurance paid for life….I have 6 years left before I retire from the state I’ll get $2100 a month…I also have $126000 in my deferred comp (I put $1000 biweekly in it) and I’ll have SSI but have no idea how much I’ll get with the double dipping….I guess I’m spraying and praying 🙏🏻 🤷🏻‍♂️🤦🏻‍♂️💰

[@LOBL202]

WoW! I am 58 and thought I was way behind in my savings thinking I may not have enough. I plan on Retiring @ 60 & currently have $1.3 mil in 401k + the $370k Pension (lump sum distribution). I am trying to save maximum amount for the next 2 years. My goal is to have at least $2.1 mil or more. I suppose though when I start withdrawing, my taxes will help pay for those that did not save.

[@dsquires16]

Well done!

[@jwall62]

So, you're going to save an additional 800k in 2 years?

[@juliuserving7841]

Don't be greedy ur not living forever, don't know when ur time is up, enjoy it now ,while alive don't take money or especially ur life for granted , your time in earth is limited all of ours is also!

[@jeffreylangdon7983]

Wow! This made me feel really good. I have a little over 2.1 in my 40lk and that isn't my only investment. I guess I am in the 1%!

[@HolySchmidt]

Nice work!

[@petersonkahlid7679]

W • H • A, T • S• A • P • P • M • E • + • 1 • 2 • 6 • 2 • 7 • 7 • 0 • 5 • 9 • 1 • 1 •

[@konnifritzemeyer3479]

Way to go! You should feel really good!

[@OpenYourEyes7479]

Thanks Jeff. I subscribed. I find you very informative.

[@FennaVa]

I am 53 years old and consider myself to be a high earner. My job provides me the option to contribute the employer contributions to my Roth 401k. Should I do that or should I continue to direct that to my Traditional 401k ahead of retirement?

[@jb-zr7nw]

Great info. Remember, investing is not for everyone. The majority of people would do quite well with a combination of an S&P 500 and Nasdaq index funds.

[@stephenadella]

Excellent and superior presentation with concise useful knowledge. You are one of the best, skilled, and clean accumulated knowledge calculators. The point of any calculation is to answer questions. All thinking begins with a wondering question from your own universal center and where you may locate or "benchmark" your current position. The only way to do that is to take little slices of the big pictures, and measure. Thank you for the closest answers to some of my questions, and all for free!

[@HolySchmidt]

Thank you Stephen for your kind words.

[@runwader]

if nothing changes I am projected to have double the median at 65, but I still feel that's low

[@HolySchmidt]

In the words of my old track coach - just keep running and don't look back. You are just racing against yourself.

[@MrKogline]

I just stumbled on these videos to see how I am doing at 35. Got 138k so far and I don't have a well paying job. I just save a lot and play the market. Do not go softly into that good night, rage, rage, against the dying of the light. YOLO or save, there is no right answer. Live with what you have and enjoy the ride.

[@jamescalifornia2964]

I am investing in toilet paper and alcohol gel 😃 💰´

[@rocketdog4539]

That’s crazy low.

[@jamescalifornia2964]

@@rocketdog4539 / Many retire broke due to addiction; divorce; medical costs etc. _THAT'S_ low ... 😢

[@ontheside5942]

At 59 1/2 I rolled my 401K into an IRA. My 401K still exists and is being contributed to, but the vast majority of my retirement funds are in the IRA. Would my example skew your numbers, or are IRAs counted?

[@jeffjackson9679]

I plan to retire in a van down by the river. Is the $40 and trash can full of empty cans enough for me to retire on?

[@carlwhoha769]

Sorry, the aluminum cans are not worth the price of the trash can, you are upside down...

[@jeffjackson9679]

@@carlwhoha769 I diversified my investments though. Forgot to tell you, my trash can portfolio is 70% aluminum, 20% glass, and 10% ???.

[@jlepage36]

It depends, is your van paid off? How big is your bag full of cans? Are you comfortable eating out of dumpsters? Is your wife also comfortable with this? And finally, are you healthy and able to forgo any kind of medical care until your early demise?

[@Jalahr77]

As long as you can time the aluminum market correctly, you should be fine...

[@mikenonameneeded3485]

Hilarious

[@davidsiemer7578]

Sadly I only have $85K at 60; but I’m now collecting two pensions of $2K a month and still working to 65 earning 100K yearly. So I’m looking at having $200K + at 65. I’m thankful I’m on a good path ☝️👍

[@daves5716]

@Proud Pastrami and you can't spell.

[@skibum6422]

@Proud Pastrami I'd say that is way out of line. He didn't say he was making 100k his entire career. If he's collecting 4K a month in pension that's equal to having 1.2 million in a 401k drawing at 4%. That doesn't sound to idiotic to me. Funny you call someone an idiot and get offended when someone calls you out on grammar SMH.

[@HolySchmidt]

Keep going and just stay Focused. Also two pensions is a good outcome.

[@eile4219]

I put all my 401k money on tech 10 years, got lucky. Not suggesting anyone to do it.

[@rexiiforsure9558]

I think the best advice is first have a job that channels your passion and work hard at it. I started as a basic engineer in 1962 (after my time in the Air Force and then college). I rose up the ranks to become chief research engineer (along with some important patents) by the late 70’s. I retired in 1995 with $4.5 million. To get that sum all I did was invest 15% of my income (as well as all my invention bonus $$$) in moderately aggressive mutual funds. At least for me, the moral is focus mostly on your primary career along with making simple but practical investments.

[@mocheen4837]

I am hoping to be like you one day.

[@phild8095]

Wow, there's a lot of people that don't understand money. Average at 65 a bit over 200k, the median about 65k during years when the market has been doing pretty good. Yah, there was a downturn in 2020, but it already recovered by the end of the year. But if you have to have the latest phone for everyone in your family, the big screen TV, a new SUV, the cruise, the fancy clothes, the great vacations.

[@jdear97]

My wife and I have had many different jobs over the years and we have 10 separate 401K or IRA accounts. We don't have any one account that has close to a million dollars. We have been working on getting them consolidated, but it takes a tremendous amount of effort.

[@markreichman5922]

58 yr old ex-girlfriend has $0 401k/Roth, $65k NY state pension, and will get $23k SS at 62. So, in 3 years she will making $88k a yr with no 401k or Roth. Some people without a 401k or Roth will be doing just fine.

[@ratterrier6181]

What are your personal thoughts on hyperinflation and do you think I will happen If it does are Our 401K in big trouble??? Thanks

[@markrenton1093]

RatTerrier 61, I am thinking like you ,INFLATION.

[@budj13]

This is not surprising, but it is alarming. I'll admit it, I didn't start as young as I should have, but I've put more in my 401K in the last 76 years than the average 65 you has in theirs. I am proud that I taught my 45 and 47 ear old kids to start early and compound, compound, compound. They are ahead of the average 65 yo already. How do we change this pattern in America? How do we get people saving and managing debt? That is one reason why this kind of data is important! I' love your content and please keep up the great work.

[@budj13]

I meant in the last 6 years not 76 years...

[@redpine8665]

I shouldn't be shocked that only half the people who have a 401k offered, actually use it, but I am. I just can't believe people. It's before taxes and most employers match some. It's free money! ughhh.

[@dank1518]

This video reinforces my personal lifestyle decisions.

[@leenickshramko1100]

I'm finding , as a retiree, that trying to anticipate RMDs and the taxation associated, I'm also running into what is called "IRMA". It's called being between a rock (RMD taxes) and IRMA which increases Medicare premium for income (including 401k and IRA withdrawals) over certain amounts. Kind of getting the feeling of being screwed over twice. There are more middle class 401k and IRA owners in the middle class than ever before, since COLA is no longer offered by employers during working years. My advice: if you're still in your earning years, pay the tax and get your money in Roth accounts, either in 401k or IRAs. Then you won't have to worry about withdrawing in retirement. Who knows what's going to happen with medicare premiums, but you really have to know the bands of income and where you go into the next level. Kind of like tax brackets. It can double your medicare premiums. And it is predicated on two years earlier income. For instance: in 2021 they'll be looking at 2019. etc.

[@Mitzi73]

It could also mean they converted their 401ks to IRAs and aren’t represented.

[@davidfunvideos]

Exactly what I was thinking.

[@harryballs5080]

Probably not though

[@jamescalifornia2964]

Perhaps they went broke ... 😲

[@stevegand]

That is exactly what I did; converted my 401(k) to IRAs.

[@myvenusheeler]

@@harryballs5080 I agree, especially if they are still working and not yet retired.

[@francisebbecke2727]

Thanks for mentioning the great variety in cost of living considering places to live. Also some have a pension and some don't. Some people have spouses with a pension and some don'r.

[@susanb1394]

Another great video, thanks!

[@nitroxdiver11]

I have been putting 20 percent in my 401k for the last 20 years. The key is to live modestly, as if you never had the extra money. I retired at 62, and do not have to worry about money in retirement. The problem younger generation. has is job security and home values.

[@rexiiforsure9558]

My friend whose quite a bit younger than me just turned 65 went to his financial advisor Mr Pugh, who said that my friends 401k balance is ‘very average’ for someone his age, That made him feel better since he though he was way below typical balance for his age

[@Reaperman4711]

I was having trouble believing that $65k average, and then examined the other half of the household, and realized the wife's 401k is just over $40k.

[@miketony8152]

My wife and I have a combined social security of $4800.00 mo. We can live on that

[@OroborusFMA]

I am shocked the average and median are so low. I didn't begin saving until I was in my mid-30s, and didn't really seriously contribute until my late 40s. I expect to have 750K by the time I'm 67. If I had had begun in my 20s I'd have well in excess of a million at retirement.

[@hobgoblin4614]

Bro - you're not the only one in this boat. At least we started and wised up. Many still have their heads in the sand. I respect the 70 year old greeters at Walmart but don't want to be one of them. I'm maxing out my $19,500 contributions now!

[@DeansWoodworking]

Great info thanks for sharing

[@hleigh842]

Excellent and very informative. Thank you.

[@honesty5964]

Thank you. This videos are very helpful.

[@jrm2383]

I live in small town outside Milwaukee!😀

[@beckyhp7776]

I drive at 2010 a Honda Accord and my husband drives a 1995 Ford. We wonder how people in our neighborhood have bought a 450k house and have new cars in their driveway. I can’t do that and save the 20% in my 401k.

[@dancalmpeaceful3903]

Your neighbors who have 450K houses are dolts. Be assured, they are poor and have nothing saved. The ones you SHOULD be talking to are the folks who have even older cars than you....and yes, I own a rusty 2001 Toyota Corolla and I like it that way. No one wants to steal it, much less park next to it.