What Is The Average 401k Balance For A 65 Year Old?
The average 401k balance of a 65 year old is 195,500 US dollars, while the median 401k balance is 62,000 US dollars.
The 401k plan allows the employee to dedicate a specific percentage of the pre tax salary to a retirement account. The funds in the 401k plan are thereafter invested in the likes of bonds, funds and stocks - even cash.
What is a 401k plan?
For most people a 401k plan is one of the most common investment plans. Is is also the way many Americans save up for their retirement.
To the majority of people with a 401k plan the plan sponsored by the employer. The plan allows people to save up for their retirement in a tax-sheltered way. By doing so you can save up to 19,500 dollars a year and there by maximize your savings.
Therefor you should always accept a 401k plan, in your employer offers one. You should especially accept it if the employer offers to match your own contributions to your 401k plan.
Despite of the 401k plans many upsides only about one third of all Americans are investing in a 401k plan. This is despite of the fact that 59% of the employees have access to one.
The 401k plan often takes it departure from the age of 22. If you follow the 401k plan, then you can save up more than six million dollars by an annual growth of 8%.
From the age of 50 employees can make additional contributions up to 6,500 dollars a year.
Thanks for the support
As a last note we'd like to thank our Danish friends at avXperten for their support towards this blog post. On their webshop you can find all kinds of electronics, including the modern WiFi solutions from Ubiquiti: https://www.avxperten.dk/ubiquiti/.