If You've Saved This Much for Retirement by Age 50, You're Ahead of the Game

Key Points Most people around this age have passed the six-figure mark, with some on track for a seven-figure nest egg. Workplace 401(k) accounts remain the workhorse for accumulating retirement savings, although most of this crowd also have sizable IRA balances. No matter where you stand, creating or updating a written plan for reaching your retirement goal improves your odds of success. The $23,760 Social Security bonus most retirees completely overlook › It's absolutely possible to worry too much about how your retirement savings compare to those of your peers. On the other hand, it's not necessarily an unfruitful exercise... particularly if you're behind, but still have time to catch up. If nothing else, seeing how your number stacks up to others might be just the motivation you need to change how -- and how much -- you save. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » If you're 50 years old right now (or in that ballpark), here's how much money your peers have tucked away for retirement. Where your peers are 401(k)s are obviously not the only vehicle you can use to build your nest egg. For most of the 50-ish crowd, however, workplace 401(k)s make up the lion's share of their savings. To this end, mutual fund company and retirement plan administrator Fidelity reports that, as of the end of the first quarter, the average 401(k) balance for 45- to 49-year-olds participating in its retirement plans was $163,200, and $215,700 for 50- to 54-year-olds. These numbers jibe with those from rival fund company and retirement plan administrator Vanguard, which reports that as of last year, the 45- to 54-year-olds participating in its 401(k) plans were sitting on accounts averaging $214,991. The number changes -- albeit not dramatically -- when retirement savings held outside a 401(k) account are included. In the Federal Reserve's most recent (2022) snapshot of U.S. consumers' finances, it finds the typical 45- to 54-year-old has saved $313,220 for retirement. Presumably, most of the difference reflects money held in an ordinary IRA . Image source: Getty Images. Don't beat yourself up too much if you're nowhere near these numbers, however. Most people aren't. Although they're averages, they've been skewed higher by a small number of very large account balances. Vanguard adds that the median account value of 45- to 54-year-old participants in its 401(k) plans is a measurably lower $78,730. That just means half of all these customers have more than this amount saved for retirement, while half have less. In this same vein, the Federal Reserve's 2022 survey indicates that the average median retirement savings for the nation's 45-to-54 crowd is a similarly lower $115,700. Again, much of this difference likely reflects savings in retirement accounts other than a 401(k). Simply making a clear plan is half the battle Don't worry too much about where you stand compared to these numbers. You may end up needing less than you think. Conversely, it's possible that those with the very most saved up for retirement still won't have enough money when the time comes. The key is creating a savings plan that works for you now, and a spending plan that will work for you then. Most people don't, which is a mistake in and of itself. Putting things in writing dramatically increases the chance of doing them simply because it forces you to map out exactly what you need to do to reach your goal. Of course, simply having a specific savings goal also improves your long-term returns. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more ... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies. View the "Social Security secrets" » The Motley Fool has a disclosure policy .

Most people around this age have passed the six-figure mark, with some on track for a seven-figure nest egg.

Workplace 401(k) accounts remain the workhorse for accumulating retirement savings, although most of this crowd also have sizable IRA balances.

No matter where you stand, creating or updating a written plan for reaching your retirement goal improves your odds of success.

It's absolutely possible to worry too much about how your retirement savings compare to those of your peers.

On the other hand, it's not necessarily an unfruitful exercise... particularly if you're behind, but still have time to catch up. If nothing else, seeing how your number stacks up to others might be just the motivation you need to change how -- and how much -- you save.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

If you're 50 years old right now (or in that ballpark), here's how much money your peers have tucked away for retirement.