Depending on age, the average 401(k) account balance ranges between roughly $7,000 and $300,000, but median balances are much lower.<\/p>\n
Retirement investors should have at least one year\u2019s worth of their salary saved by age 30, three times\u2019 worth by 40 and ten times\u2019 worth by 67, according to Fidelity.<\/p>\n
To optimize your 401(k), you can increase your contributions each time you get a raise, make catch-up contributions if you\u2019re age 50 or older and explore investing in a Roth 401(k).<\/p>\n
Investors have been on quite a ride the past few years. Consistent contributors<\/a> to retirement plans, such as a 401(k)<\/a>, have been largely rewarded by staying the course through the ups and downs in the markets during the bear market of 2022, interest rate hikes by the Federal Reserve and recent market volatility due to tariffs.<\/p>\n Average 401(k) plan balances reached $148,153 in 2024, up from $134,128 in 2023, according to Vanguard\u2019s \u201cHow America Saves 2025\u201d report<\/a>.<\/p>\n While short-term market volatility is inevitable, it\u2019s important not to overreact to large swings in price. Remember to stay focused on your long-term investment plan<\/a> and keep building up that retirement nest egg.<\/p>\n Get started: Match with an advisor who can help you achieve your financial goals<\/a><\/p>\n These are the average and median balances for specific age groups at the end of 2024, according to Vanguard<\/a>, which gathered data from nearly 5 million defined contribution plan participants across its recordkeeping business.<\/p>\n Age<\/p>\n Average account balance<\/p>\n Median account balance<\/p>\n Under 25<\/p>\n $6,899<\/p>\n $1,948<\/p>\n 25-34<\/p>\n $42,640<\/p>\n $16,255<\/p>\n 35-44<\/p>\n $103,552<\/p>\n $39,958<\/p>\n 45-54<\/p>\n $188,643<\/p>\n $67,796<\/p>\n 55-64<\/p>\n $271,320<\/p>\n $95,642<\/p>\n 65+<\/p>\n $299,442<\/p>\n $95,425<\/p>\n Source: Vanguard, \u201cHow America Saves 2025\u201d<\/p>\n Average 401(k) balance: $6,899<\/p>\n Median 401(k) balance: $1,948<\/p>\n The median balance for people just getting started in their careers is $1,948. That means half of 401(k) plan participants in this age group have less than that amount saved and half have more. The average balance is quite a bit higher, skewed by those who are able to save more in their 401(k).<\/p>\n How much should you strive to save for retirement<\/a>? Fidelity, which manages employee benefits programs for nearly 30,000 businesses and offers a variety of financial planning services, suggests saving at least 10 times your annual salary by age 67.<\/p>\n The firm also advocates following another metric: Save 15 percent of your pretax income from the time you begin your career \u2014 including any company match. So, if your employer matches 3 percent of your salary, you\u2019d need to save 12 percent. If current expenses preclude this possibility, work toward that amount as a goal.<\/p>\n Average 401(k) balance: $42,640<\/p>\n Median 401(k) balance: $16,255<\/p>\n Again, the average 401(k) balance is more than twice the median balance, reflecting the larger savings capacity of high-wage earners and those focused on maximizing their 401(k) plan.<\/p>\n By age 30, Fidelity<\/a> recommends having the equivalent of one year\u2019s salary stashed in your workplace retirement plan<\/a>. So, if you make $50,000, your 401(k) balance should be $50,000 by the time you hit 30.<\/p>\n If you\u2019re running behind, try increasing your contribution amount by a couple of percentage points when you can during your 30s. This is especially easy if you time the increase with any raises or bonuses you get. This way, you don\u2019t feel any pinch in disposable income. In fact, it will help keep your spending in check if you live beneath, rather than above, your means.<\/p>\n Compare advisors: Bankrate’s list of the best financial advisors<\/a><\/p>\n Average 401(k) balance: $103,552<\/p>\n Median 401(k) balance: $39,958<\/p>\n In your 40s, you have lots of financial obligations \u2014 typically a mortgage payment, and perhaps a family with all its related costs. Still, it\u2019s important to defer a good portion of your income toward your 401(k) so you don\u2019t shortchange your golden years. You still have roughly 20 years before the conventional retirement age, so make the most of your savings opportunities.<\/p>\n Fidelity says by age 40, aim to have a multiple of three times your salary saved up. That means if you\u2019re earning $75,000, your retirement account balance should be around $225,000 when you turn 40.<\/p>\n If your employer offers both a traditional and Roth 401(k), you might want to divide your savings between the two. When you hit retirement age and it\u2019s time to take withdrawals, you\u2019ll have to pay tax on money taken from the traditional 401(k), but not from the Roth, because it\u2019s funded with after-tax contributions.<\/p>\n Average 401(k) balance: $188,643<\/p>\n Median 401(k) balance: $67,796<\/p>\n During this decade, you may be getting a larger paycheck than ever, and perhaps you can maximize your 401(k) plan. The 2025 contribution limit is $23,500. Those aged 50 and older can add another $7,500 to that amount, for a total of $31,000. You might also be able to max out a traditional or Roth IRA<\/a>; the limit this year is $7,000 for those under 50, but you can bump that up by another $1,000 as a catch-up contribution if you\u2019re older than 50.<\/p>\n By age 50, Fidelity suggests you should have accumulated a multiple of six times your current salary. That same $75,000 salary would equate to a 401(k) balance of $450,000 by the time you reach 50. The median balance for those aged 45-54 indicates that at least half of workers are not even close to accomplishing that goal. Retirement will be here before you know it, so increase your savings rate if you can.<\/p>\n Average 401(k) balance: $271,320<\/p>\n Median 401(k) balance: $95,642<\/p>\n Those in or near retirement had better be diversified in other asset classes besides stocks, such as bonds<\/a> and cash instruments, which can offer stability to a portfolio during stormy times.<\/p>\n It\u2019s crunch time. Do you have 10 times your annual salary saved up? The average 401(k) balance reflects the fact that many people have saved quite a bit more than $271,320. Alas, the median balance reveals that many people have saved quite a bit less.<\/p>\n Fidelity says by age 60 you should have eight times your current salary saved up. So, if you\u2019re earning $100,000 by then, your 401(k) balance should be $800,000.<\/p>\n Get matched: Find a financial advisor who can help you maximize your investments<\/a><\/p>\n How much money you\u2019ll need to retire<\/a> will vary from person to person depending on different factors such as how long you expect to live, where you live and the investment returns you expect to earn. Estimating your annual expenses is a big factor in knowing how much you\u2019ll need during retirement because these are the costs you\u2019ll have to cover with your savings.<\/p>\n How much money do you need to pay your bills each month? Multiply this figure by 12 for an annual estimate and then multiply the total again by 30 in case you live another 30 years after you retire. This rough calculation doesn\u2019t take into consideration investment earnings or inflation, but it offers a ballpark figure for your future needs. Be sure to include health care expenses in your calculation.<\/p>\n Another popular method is known as the 4 percent rule<\/a>. This method calls for withdrawing 4 percent of your retirement account balance in the first year of retirement and then adjusting for inflation in subsequent years. Some advisors think this approach isn\u2019t conservative enough, but it can help provide a rough guideline for what you\u2019ll need to save.<\/p>\n Another method, called the rule of 25, calls for taking the amount you\u2019ll need each year and multiplying it by 25<\/a> to arrive at an approximation of the savings you\u2019ll need.<\/p>\n