The Limits of a 401k Plan

There's $11 trillion in the United States alone in what we call defined contribution plans. For example, if you are age 55 to 64, and that 10 years before traditional retirement, the average balance in a Vanguard 401k account is $89,760. If you take the 4% rule, that's $299 a month to live on. So that means half the people at Vanguard have less than $90,000.