401(k) balances for people in their 40s and 50s may differ from the average.

By the 40s and 50s retirement feels more immediate and 401(k) balances matter especially for those considering early retirement because funds generally cannot be accessed without penalty until age 59½.

People in their 40s and 50s often begin to picture retirement and some consider leaving the workforce earlier than traditional retirement ages. When early retirement is being considered, 401(k) balances take on extra importance because savings will need to last longer. Funds in a 401(k) generally cannot be accessed without penalty until age 59½, which can create a gap if work stops earlier. Preparing for an early retirement also means accounting for a longer retirement horizon and potentially higher healthcare costs. Key facts: - 401(k) balances become more important for people who plan to retire earlier than the traditional ages. - 401(k) funds generally cannot be accessed without penalty until age 59½. - Retiring before traditional retirement ages can create a gap that may need other savings or income to cover. - Early retirement planning involves a longer retirement horizon and potentially higher healthcare expenses. - Comparing balances with peers is described as a useful checkpoint but not a complete plan. Summary: Planning for retirement in your 40s and 50s often shifts focus to timing and access limits on 401(k)s, and those considering early retirement will commonly need other savings or income to cover years before penalty-free access at age 59½. The article presents comparing balances with age peers as a checkpoint while noting that broader planning beyond benchmarks is the next consideration.