{"id":613220,"date":"2026-09-03T14:12:10","date_gmt":"2026-09-03T14:12:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/613220\/"},"modified":"2026-09-03T14:12:10","modified_gmt":"2026-09-03T14:12:10","slug":"how-much-money-americans-in-their-30s-and-40s-have-in-their-401ks","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/613220\/","title":{"rendered":"How much money Americans in their 30s and 40s have in their 401(k)s"},"content":{"rendered":"

Boosted by a strong stock market<\/a>, the average 401(k) balance jumped 10.5% from March through June \u2014 the biggest quarterly increase since 2020, according to new data<\/a> from Fidelity.<\/p>\n

Here\u2019s how much Fidelity participants in their 30s and 40s have socked away, on average:<\/p>\n

30s: $75,200 40s: $156,800 <\/p>\n

Workers are also saving a historically high share of their pay, Fidelity says. Including employer contributions, 401(k) holders are investing an average 14.4% of of their paychecks, just shy of Fidelity’s recommended 15%. More than 8 in 10 participants were also contributing enough to receive their full employer match<\/a> \u2014 a contribution based on how much a worker puts into their 401(k), up to a set limit.<\/p>\n

\u201cA 401(k) is a fantastic retirement savings tool for a lot of reasons. I\u2019d generally rank it as one of the more high-priority retirement savings options out there, especially when a match is provided,\u201d says Kevan Melchiorre, certified financial planner and co-founder of Tenet Wealth Partners.<\/p>\n

Fidelity recommends<\/a> having the equivalent of your annual income saved for retirement by age 30 and three times your income by 40. But those benchmarks encompass more than just your 401(k), and a healthy balance alone doesn\u2019t necessarily mean you\u2019re on track for retirement. Fidelity’s guidelines are intended to put workers on a path toward having 10 times their income saved by age 67, which the brokerage estimates can help support retirees’ lifestyle in retirement.<\/p>\n

Here\u2019s how to get a better sense of where you stand \u2014 and what to do if you’re behind.<\/p>\n

Look beyond your 401(k) balance<\/p>\n

A 401(k) can be a foundational part<\/a> of your retirement savings, but it may be only one piece of the picture, alongside IRAs, taxable brokerage accounts and health savings accounts. <\/p>\n

As a general rule of thumb, Melchiorre recommends investing at least 15% of your income for retirement across all of your investment accounts, including any 401(k) contributions from your employer. <\/p>\n

To get a better sense of whether you’re on track for retirement, it can also help to consider your overall net worth, says Adam Vega, a CFP and managing partner at Avance Private Wealth Management. Net worth is the value of assets such as your home, investments and savings, minus debts such as a mortgage or student loans. <\/p>\n

By age 40, Vega likes to see someone\u2019s net worth approaching two to three times their annual income. Equally important, he says, is whether that number is moving higher.<\/p>\n

\u201cSomeone who has built substantial home equity and paid down debt may have a much stronger financial position than their 401(k) balance alone suggests,\u201d says Vega.<\/p>\n

These benchmarks are only rough guides. How much you\u2019ll ultimately need depends on factors including when you plan to retire and how much you expect to spend, he says.<\/p>\n

That said, 401(k)s have some unique advantages for workers trying to build their retirement savings. In 2026, workers can contribute<\/a> up to $24,500 to a 401(k), compared with $7,500 across traditional and Roth IRAs. And many employers will match at least some of what workers contribute.<\/p>\n

Your 40s aren’t too late to catch up<\/p>\n

Falling short of a retirement savings benchmark in your 40s doesn\u2019t mean you can\u2019t make up ground, Melchiorre says. Many workers in their 40s still have more than two decades for their investments to grow before retirement.<\/p>\n

But it pays to start as early as you can. The sooner you invest, the more time your portfolio has to grow at a compounding rate<\/a>. <\/p>\n

For example, a 22-year-old who invests $250 a month would have about $953,680 by age 67, based on a hypothetical 7% rate of return, according to Make It’s compound interest calculator<\/a>. A 40-year-old who starts investing the same monthly amount at the same rate of return would have $240,672 by age 67 \u2014 about one-quarter as much.<\/p>\n

To reach roughly the same $954,000 balance by age 67, the 40-year-old would need to invest about $990 a month. That may be a steep increase, but your 40s can also be a point when you have more room in your budget to save. As expenses such as college or other debts are paid off, some of that money can potentially be redirected toward retirement, Vega says.<\/p>\n

\u201cThe biggest mistake is assuming it’s too late and getting discouraged to start,\u201d Melchiorre says. Instead, he recommends contributing what you can and gradually increasing your savings rate over time.<\/p>\n

Take control of your money with CNBC Select <\/p>\n

CNBC Select is editorially independent and may earn a commission from affiliate partners on links.<\/p>\n

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