401(k) Retirement Savings Guide for 2024: Easy Tips and Trends

• Author: Bryan Miller
• Posted: 2025-10-11

In the United States, a 401(k) plan is a popular way people save for when they retire. It's liked because you don't have to pay taxes on the money right away and your savings can grow over time.

As of the latest research by Vanguard, which looked at over 5 million 401(k) plans, the usual amount in a 401(k) is $112,572. However, this number can be misleading. If we really want to see what a typical American has saved, we look at the median balance, which is a more average number, and that's $27,376.

By 2024, things look a bit better. The average 401(k) balance is predicted to rise to $134,128. But the median balance will be around $35,286, showing us there's a big difference in how much people have saved for retirement.

Why Ages and Earnings Matter

Your age and how much money you make can greatly affect your 401(k) balance. Young people just starting work have less saved, naturally. Someone under 25 has about $7,351, but someone over 65 has a lot more - $272,588 on average.

The rules say if you're under 50, you can put up to $23,000 into your 401(k). If you're 50 or older, you can add an extra $7,500 to that.

Your income plays a big role, too. The more you earn, the more you can save. People making less than $15,000 have an average of $24,175 in their 401(k)s. But those making $150,000 or more? They have a whopping $336,470 saved on average.

And it's important to note that on average, men tend to have more saved than women, which is partly due to men earning more money on average.

How to Boost Your 401(k) Savings

Want a nicer nest egg for your retirement? Here are some straightforward tips:
 

• Start Saving Now: The sooner you start, the more you'll have thanks to compound interest. Try to save regularly, even if it’s a small amount at first.
• Get the Employer Match: Many jobs offer to match your 401(k) contributions up to a certain percentage. Always save enough to get this match—it’s like free money.
• Raise Your Contributions: Got a raise or bonus? Consider putting a bit more into your 401(k). Even a small increase now can mean a lot more money when you retire.
• Mix It Up: Don’t put all your money into one type of investment. Spread it out to reduce risks and potentially increase your returns.
• Keep an Eye on It: Check your 401(k) now and then to make sure it’s doing what you want it to do. If it’s not, it might be time to change things up.
• Avoid Using It Early: Taking money out of your 401(k) before you retire can come with penalties and taxes. Plus, you’ll lose out on future earnings.
• Over 50? Take Advantage: If you’re 50 or older, you can put more money into your 401(k) each year. This can help you catch up if you need to.
• Watch Those Fees: Some 401(k) plans have high fees. Over time, these can really eat into your savings, so look for a plan with lower costs.
• Get Advice If You Need It: If you’re not sure what to do, a financial advisor can help. They can give you advice based on your personal situation.

Remember, when it comes to saving for retirement, everyone’s journey is different. By following these tips and paying attention to your own needs, you can build a more secure future for yourself.

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