A 401(k) can be one of your best options for retirement savings. With its high contribution limit, tax advantages, and potential for a company match, it could be your biggest source of savings once you retire.

But the average person had just $232,710 invested in a 401(k) at age 65 or older as of the end of 2022, according to data from Vanguard. The median balance, which may be more representative of the typical retiree, was just $70,620.

While markets recovered in 2023, likely sending the average 401(k) balance higher, many Americans will find their 401(k) wanting if they reach retirement with an "average" balance. Even when you add in Social Security income and other sources of retirement savings, that level of 401(k) savings is going to make it difficult for many to retire comfortably.

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Source Fool.com