About this Video

• Video Title: How Much You Should Save In Your 401K By Age - 2025 Edition!
• Channel: Humphrey Yang
• Speakers: Humphrey Yang
• Duration: 00:14:33

Introduction

This video analyzes Vanguard's 2025 report on 401k savings trends across different age groups in America. The speaker discusses the average and median 401k balances, contribution rates, and provides advice tailored to each age bracket, emphasizing the importance of consistent saving and early planning.

Key Takeaways

• Under 25: Average 401k balance is down year-over-year, likely due to low participation rates and high job turnover. Focus on starting a 401k, utilizing employer matching, and establishing good personal finance habits.
• 25-34: Average balance is $42,640 (median $16,255). Focus on avoiding lifestyle inflation, increasing savings rate (aiming for 15-20%), and planning for major future purchases.
• 35-44: Average balance is $103,552 (median $39,958). Consider early retirement feasibility, aim to save 3-4 times annual salary by age 44, and eliminate consumer debt.
• 45-54: Average balance is $188,643 (median $67,796). Pay off mortgage if possible, track spending to estimate retirement needs, and create an estate plan. Fidelity suggests having 7 times annual salary saved by age 55.
• 55-64: Average balance is $271,300 (median $95,642). Balances haven't changed much due to less equity exposure. Aim for 10 times annual salary saved by age 65, according to Fidelity.
• 65 and up: Average balance is $299,942 (median close to $100,000). Financial planning should largely be complete.
• Consistent Saving: The video repeatedly stresses that increasing and maintaining a high savings rate is the most crucial factor for successful retirement savings.