How much money the average American in their 40s has saved up in their 401(k) account

401(k) account is provided through your employer and uses pre-tax money to help you save up for those years when you won’t be working.

Most employees are automatically enrolled in an account by their employer and they can choose how much of each paycheck they want contributed to the account.

The automatic nature of these savings helps you build your balance without having to lift a finger.

The older you get the higher your balance should be unless at one point you made a hardship withdrawal from your 401(k) account.

Information from Vanguard’s 2021 How America Saves Survey to take peek at how much money average American in their 40s has saved up in 401(k) account.

Average 401(k) balance of ages 35–44: $86,582 (average); $32,664 (median)

Average 401(k) balance of ages 45–54: $161,079 (average); $56,722 (median)

Average 401(k) balance of ages 55–64: $232,379 (average); $84,714 (median)

Personal retirement savings goals can differ based on the type of lifestyle you want to enjoy during retirement.