Key Takeaways<\/p>\n
According to Fidelity, millennials (ages 29-44) had an average 401(k) balance<\/a> of $67,300 in 2024, with an 8.7% average contribution rate\u2014the second-lowest among generations.\u00a0 The average millennial had about $67,300 saved for retirement, according to Fidelity Investments\u2014a figure that looks modest next to Gen X’s $192,300 or boomers’ $249,300, though these generations have had longer to save.\n<\/p>\n The story brightens when we look at contribution rates (including with employer contributions), with millennials at about 13.3%, not far from the 15% that financial advisors recommend, and almost 40% of savers increased their contribution rate last year. The generation that came of age during economic chaos is gaining ground, though whether it’s enough and can hold through a period of economic uncertainty<\/a> is an open question.\n<\/p>\n<\/p>\n What Average Balance Tells Us\u2014And What It Doesn’t <\/p>\n The overall average masks a wide range within the generation. Millennials span ages 29 to 44 in 2025, which means some are just a few years into their careers, while others are approaching midlife. Vanguard’s 2024 data shows 25-to-34-year-olds averaged $42,640 in their defined contribution plans<\/a>, while 35-to-44-year-olds averaged $103,552.\n<\/p>\n The median figure, which is less influenced by outlier high numbers among the well-to-do, shows that the typical savings are more modest. Vanguard’s median for the 35-44 age group was just $39,958, suggesting that a few high balances are pulling up the average figures. Transamerica’s figures, which focus on middle-class Americans, put the median millennial retirement savings at $65,000\u2014meaning half the generation had less than that.\n<\/p>\n Why Many Millennials Are Playing Catch-Up <\/p>\n For those who see these figures and feel behind\u2014it’s not as if economic circumstances were always in millennials’ favor. The oldest millennials entered the workforce around 2003, only to face the Great Recession<\/a> just a few years later. At one point, more than 15% of millennials were unemployed during that downturn, and many who kept their jobs had wages that were stagnant for years.\n<\/p>\n Then there’s the student debt crisis<\/a> that was starting to crest just as millennials were entering adulthood. Millennials collectively hold the most student debt of any generation (about 40%), and for years, many prioritized paying down their loans over funding retirement accounts. The pandemic added another disruption\u2014some millennials tapped their 401(k)s during job losses, while others paused contributions entirely.\n<\/p>\n<\/p>\n How You Can Close the Gap <\/p>\n If you’re behind on saving for retirement, you still have time. You don’t just need to save more but can look for ways to save more smartly. For example, about a fifth (18.3%) of millennial savers are now using Roth 401(k)s<\/a>, which offer tax-free withdrawals in retirement\u2014a move workers take if they expect to be in a higher tax bracket later.\n<\/p>\n Fidelity suggests having about three times your annual salary saved by 40. If you’re behind, boosting your contribution rate by even 1% per year can make a significant difference over time\u2014especially as you’re decades away from retirement.\n<\/p>\n Tip<\/p>\n
\nThe Transamerica Center for Retirement Studies put the median millennial retirement savings<\/a> even lower at $65,000\u2014meaning half had less than that.
\nMany millennials savers increased their contributions to retirement accounts in 2024.<\/p>\n