Regarding retirement savings, many people may feel that living costs will decrease as they age, however, the importance of savings cannot be ignored. Especially when you reach the age of 45 to 54, this period is a good opportunity to evaluate your retirement savings. If you are not very satisfied with your current savings situation, there are some methods that can help you catch up.

While many retirees rely on fixed incomes, if your salary is at an average level, that income can only replace about 40% of your paycheck, and most people need more income after retirement to maintain a comfortable lifestyle. Therefore, relying solely on this income is unrealistic.

The reality is that saving money is not an easy task, especially in today's society. The current high inflation has left many feeling financially constrained, making it difficult to pay bills, let alone save for retirement. However, despite this, it is still necessary to lay a solid savings foundation for retirement as much as possible. According to authoritative data, people aged 45 to 54 may need to save more.

Every year, relevant data reports reveal the 401(k) savings situation of different age groups. Data shows that by the end of 2024, the average 401(k) balance for the 45 to 54 age group is $188,643, while the median is $67,796. The difference between the two is significant, as the median often reflects the typical level more accurately.

When a small number of people have huge savings, the average in the data will be skewed upwards. Therefore, the median $67,796 is closer to the actual savings level of the 45 to 54 age group in the 401(k) plans. This number may seem somewhat pessimistic for those over 50, as the time for saving has been significantly reduced.

Especially for those born in 1960 or later, the age to receive Social Security is 67. For those who are 54 years old but have only $67,796 in their 401(k) accounts, they may have 13 years to increase this balance. The time to save over these years seems ample, but the actual compounding effect is limited.

If your savings situation is not satisfactory, you might as well try the following strategies:
- Make sure you receive the full 401(k) match from your employer.
- Try to allocate salary increases for savings each year, even if it's just a portion.
- Find a part-time job to rise income.
- Ensure that your portfolio strategy is reasonable to avoid high management fees consumption.

If you have $67,796 in your 401(k), it's certainly better than having nothing at all, and for many people, this already exceeds the average. However, this does not mean you shouldn't strive to accumulate more funds for the future. Take advantage of these years to gradually increase your savings; it's still not too late.