Average 401k Balance By Age (2026 Edition)
4/24/202638 min
Have you ever wondered how much the average American has in their 401k? We've done the research and we've found the answers! Don't miss this breakdown into the data accompanied with the tips to help make sure you are ahead of the curve moving forward. Plus, we add in our Money Guy Markers to help you track your personal financial journey throughout every decade!
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Transcript preview
First 90 secondsBrian Preston· Host0:00
Hip, hip, hooray. It's 401[k]s, and on this show, we're breaking it down by age Bryan, I am so excited because today we're gonna take a look at one of America's favorite accounts, the 401[k].
Bo Hanson· Host0:11
And we're gonna find out just how much Americans actually have saved in these wealth-building machines.
Brian Preston· Host0:16
So I'm Bryan, he's Bo, and we're financial advisors here to give you the 411 on 401[k]s. With that, let's dive right in.
Bo Hanson· Host0:23
[gentle music] Yeah, if you've watched any of our content for any amount of time, you know that we absolutely love 401[k] accounts. They're one of the most powerful tools in your wealth-building arsenal. And most millionaires, when they hit that seven-figure status, when they hit the two-comma club, it often happens inside their 401[k] account.
Brian Preston· Host0:48
I- I- I think it's important to understand this is not all fluff. We need you to know why we absolutely love 401[k]s. Look, there's a lot of mathematics and things that are going for this, including these things are tax advantage.
Bo Hanson· Host1:00
Mm-hmm.
Brian Preston· Host1:00
If you think about the fact that you get to put money in, if you're using the Roth, it grows completely tax-free. How about that?
Bo Hanson· Host1:06
Yep.
Brian Preston· Host1:07
If you're using traditional, you get a tax deduction right now, and then it grows tax-deferred. This is powerful.
Bo Hanson· Host1:13
Yeah, the second mathematical advantage is that there is an employer match oftentimes.
Brian Preston· Host1:17
Get that free money.
Bo Hanson· Host1:19
You get free... That's right, it is free money that your employer's willing to put in. So there are obviously mathematical reasons why we love 401[k]s, but there are also behavioral reasons- Mm-hmm ... why we love 401[k]s.
Brian Preston· Host1:28
Yeah, I like the automation.