A lot of people have great intentions when it comes to saving for retirement. The problem? Life tends to get in the way.

It’s all too easy to put off retirement savings in your 20s because you’re earning only an entry-level wage. From there, you might plan to start funding a retirement plan in your 30s, only to be thwarted by mortgage payments and childcare costs.

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Then, in your 40s, you might struggle with surprise home repair bills. And during your 50s, a lot of your money might go toward college for your kids.

It’s therefore not so unusual to arrive at your mid-50s to 60s without much money socked away for retirement. But the amount of money Americans 55 to 64 have saved for retirement might surprise you — and not in a good way.

What the typical American aged 55 to 64 has in their 401(k)

Each year, Vanguard does a deep dive on 401(k) participation rates and related trends. And in this year’s report, it compiled data on average savings balances by age.

It turns out that the average 401(k) plan balance among Americans ages 55 to 64 is $244,750. And that’s not such a terribly low number.

But Vanguard also shares that the median 401(k) balance among Americans aged 55 to 64 is $87,571. And in any given data set, when you have a median that’s a lot lower than the average, it tends to be that the median is a more representative number.

When we look at the data that way, it paints a disturbing picture. Americans ages 55 to 64 aren’t very far from retirement. Granted, those in their mid-50s have more time to save than people on the upper end of that range.

But either way, even someone 55 may only have about another decade to build their savings. So, it’s imperative that people in this age group take stock of their savings and find ways to ramp up as needed.

How to boost your 401(k) balance ahead of retirement

If you’re nearing retirement and are unhappy with what your 401(k) looks like, there are steps you can take to catch up. First, make absolutely certain you’re claiming your full employer match in that account. If you’re behind on savings, you can’t afford to give up any of that free money.

You should also know that starting at age 50, you’re eligible to make catch-up contributions to your 401(k) in the amount of $7,500. When combined with the regular limit of $23,500, that brings your total contribution to $31,000 for 2025. And that limit may increase in future years, allowing you to save even more.

There’s also a special super catch-up provision for 401(k) savers ages 60 to 63. With this new rule, you can make a catch-up of $11,250 instead of $7,500, bringing your total allowable contribution this year to $34,750.

Granted, if your 401(k) balance is comparable to the median balance for 55- to 64-year-olds, you may not be in a position to suddenly come up with $31,000 or $34,750 for your retirement plan this year. But there may be creative ways to boost your savings rate, such as joining the gig economy and working a side job for extra money.

Also, as you get into the second half of your 50s or early 60s, you may be coming to the end of paying off your mortgage. If so, that’s money you can use to fund your 401(k) instead. And if your kids are growing up and moving out of the house, that might also allow you to reduce spending and find more money for your savings.

Remember, too, that even if you only manage to boost your savings modestly between now and retirement, all isn’t lost. You can make a smaller nest egg work by living frugally and, if possible, delaying Social Security for larger monthly benefits.

The point, however, is that if you’re close to ending your career, it’s a good time to check up on your 401(k) and figure out what you need to do to improve your long-term financial picture.

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