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401(k) balances in the 40s and 50s show gaps for early retirement plans
A Yahoo Finance analysis says the median 401(k) balance is about $161,000 for people in their 40s and about $253,000 for those in their 50s, highlighting how hard it can be to fund more years of expenses before retirement benefits are available.
Retiring before 60 requires more than just saving regularly, because 401(k) balances must last longer and withdrawals are generally restricted until age 59½ without penalties, according to Yahoo Finance.
The outlet points to median 401(k) figures of about $161,000 for workers in their 40s and roughly $253,000 for those in their 50s, noting that the average can be pulled higher by a smaller number of very large accounts.
It also emphasizes that early retirement can mean bridging additional years of spending while managing limits on retirement-account withdrawals, plus time gaps before Medicare and Social Security become available.
Yahoo Finance says many workers appear well below what would likely be needed to stop working a decade or two early, especially when savings must cover longer time horizons and added uncertainty.