Yet, many people aren’t able to save as much as they’d like to in their 401(k)s. Many don’t save anything during the early years of their career. But it might still be possible to catch up. Here’s a look at how long it would take you to save the average 401(k) balance if you’re starting from zero.<\/p><\/blockquote>\n
The average 401(k) balance was $134,128 in 2024, according to Vanguard’s “How America Saves” report. However, the median balance \u2014 a better representation of what the typical American has \u2014 is just $35,286.<\/strong><\/p>\n
These numbers will be based on the current full-scale wage.\u00a0 In fact, there will be an increase in wages that will accelerate the amounts saved.\u00a0 With that in mind, here we go.<\/p>\n
The GM hourly full scale wage is $36.96 x 40 hours per week = $1,478.40 x 52 weeks per year = $76,876.80.<\/p>\n
$76,876.80 x 10% GM contribution to the Members 401k = $7,687.68 per year company contribution to the Members 401k.<\/p>\n
Divide the typical American 401k figure of $35,286 from the article by the yearly contribution of $7,687 and you get 4.58. 4.58 years for a full scale member to save as much as the median American 401k, without contributing a penny from their paycheck.\u00a0<\/em><\/strong><\/p>\n
The 10% company contribution negotiated in the 2023 National Agreement is a life changing benefit that provides an exceptional foundation for members retirement that is not available to most American workers. The exact language outlining the benefit is pictured below.<\/p>\n
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