Workers in their 50s are consistently contributing to their 401(k)s, but many still have balances that fall short of recommended retirement savings goals, according to a recent Fidelity report, which analyzed data from more than 24 million of its 401(k) accounts through March 31.
Here’s how much workers in their 50s have in their accounts, on average:
Fidelity recommends workers aim to save six times their salary by age 50 and eight times by age 60. For someone earning the median income for that age group — roughly $67,000 — that translates to a target between $402,000 and $536,000.
Based on those targets, many 50-somethings are well behind. But that shortfall doesn’t necessarily reflect a lack of effort. Gen Xers — who make up most of this age group — have an average savings rate of 15.4%, according to the study, slightly above Fidelity’s recommended 15% rate.
And 401(k) balances only tell part of the story. Fidelity’s benchmarks are based on total retirement savings, which can also include individual retirement accounts, brokerage accounts, pensions or inheritances, so total retirement savings for people in their 50s could be a lot higher.
