Quote:
Originally Posted by tripods68
if you are age 55 and 64, you should have an average 401k balance at least $320K.
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I agree with everything you posted. I do think there are fundamental flaws with 401k plans. And I also read the cover story in Time magazine this week where I think some of your facts came from.
What I was pointing out, though, was the flaws in some of those numbers, like what I quoted above.
If you are 55-64, you should have RETIREMENT ASSETS of 320K. That is not the same as saying you should have a 401k balance of 320K. Perhaps you have only 80K in your 401k but you have a rollover IRA from a couple of previous jobs and you have another 200K in there. You've also been maxing out a Roth each year for the past few years and now have 45K in there. You also have a regular taxable brokerage account with some assorted individual stocks worth another 25K.
The fact that your 401k balance is below where it "should" be is irrelevant.
I totally agree that most people aren't saving enough for retirement. I just don't think looking strictly at 401k balances is an accurate way to measure that.