"The average 401(k) balance reached $148,153 in 2024, but the median balance was only $38,176, revealing a significant disparity in retirement savings among American workers."
"Only 16% of participants hold $250,000 or more in their accounts, which skews the average upward, while 28% have less than $10,000."
"Income explains much of the disparity; participants earning $150,000 or more had a 95% participation rate, compared to only 31% for those earning under $15,000."
In 2024, the average 401(k) account balance reached $148,153, but the median balance was only $38,176, highlighting a significant disparity. The average is skewed by a small number of high balances, with only 16% of participants holding $250,000 or more. The median represents the typical participant, while the average reflects the wealthiest 25%. Income levels greatly influence participation rates and contribution amounts, with high earners contributing more and participating at higher rates than low earners, resulting in a steeply sloped distribution of retirement savings.
Read at 24/7 Wall St.
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