Retirement savings vary widely depending on your age, income and retirement goals \u2014 which means your ideal amount will look different from your neighbor’s. For some workers, 401(k) contributions might get maxed out every year. For others, there’s a chance you haven’t contributed in a few years (if at all).<\/p>\n
The average 401(k) balance is $148,153 among Vanguard’s 5 million participants, according to the firm’s latest How America Saves report<\/a>. But that number tells only part of the story. The median balance \u2014 the middle number after lining up all balances from lowest to highest \u2014 sits at just $38,176, almost $110,000 lower than the average.<\/p>\n Why the difference? A small group of high-balance accounts pulls the average way up. Nearly 30% of accounts contain $10,000 or less, while 16% hold $250,000 or more. Some workers max out their 401(k) contributions every year, while others contribute smaller amounts or take breaks from saving during different life stages.<\/p>\n Retirement savings aren’t the same for everyone. Here’s how much Americans have saved by age, what experts recommend \u2014 and what you need to catch up or stay on track for a comfortable retirement.<\/p>\n Average 401(k) balance by age<\/p>\n For the 2026 tax year, you can save as much as $24,500 in your 401(k)<\/a> \u2014 that’s $1,000 more than 2025. If you’re 50 or older, you can add up to $8,000 more in catch-up contributions for a total of $32,500. People ages 60 to 63 have a higher catch-up limit of $11,250 for a total of $35,750 in 2026.<\/p>\n Here’s how age groups stack up on average and median 401(k) balances.<\/p>\n Age<\/p>\n Average account balance<\/p>\n Median account balance<\/p>\n 25 and younger<\/p>\n $6,899<\/p>\n $1,948<\/p>\n 25 to 34<\/p>\n $42,640<\/p>\n $16,255<\/p>\n 35 to 44<\/p>\n $103,552<\/p>\n $39,958<\/p>\n 45 to 54<\/p>\n $188,643<\/p>\n $67,796<\/p>\n 55 to 64<\/p>\n $271,320<\/p>\n $95,642<\/p>\n 65 and older<\/p>\n $299,442<\/p>\n $95,425<\/p>\n Source: How America Saves 2025, Vanguard<\/p>\n \ud83d\udc69\u200d\ud83c\udf93 Ages 25 and younger<\/p>\n Average account balance: $6,899<\/p>\n Median account balance: $1,948<\/p>\n Your retirement savings should grow as you age. Young adults recently graduating from college or just starting out in their careers naturally have far less saved than those in their 50s approaching retirement. The key is building momentum early.<\/p>\n \ud83d\udc69\ud83c\udffd\u200d\ud83e\uddb0 Ages 25 to 34<\/p>\n Average account balance: $42,640<\/p>\n Median account balance: $16,255<\/p>\n Older Gen Zers and young millennials having been in the workforce for a few years, yet their median 401(k) balance is less than $17,000. The average balance is higher because high earners skew the numbers north, but most workers are just building a foundation for retirement.<\/p>\n \ud83d\udc68\ud83c\udffe\u200d\ud83e\uddb0 Ages 35 to 44<\/p>\n Average account balance: $103,552<\/p>\n Median account balance: $39,958<\/p>\n Millennials have a median balance of just about $40,000, which is more than younger peers but short of recommendations. Most financial advisors suggest having 3 times your annual salary by age 40. For someone earning $75,000, that’s $225,000 \u2014 significantly more than most millennials have saved.<\/p>\n \ud83e\uddd3 Ages 45 to 54<\/p>\n Average account balance: $188,643<\/p>\n Median account balance: $67,796<\/p>\n Young Gen Xers nearing retirement have a median 401(k) account balance of $67,796. Advisors suggest 6 times your salary by the time you hit age 50. At the median income of $92,470 for this age group<\/a>, that target would be roughly $554,820. While higher earners might have six-figure balances, most haven’t crossed the $100K threshold.<\/p>\n \ud83d\udc69\ud83c\udffd\u200d\ud83e\uddb3 Ages 55 to 64<\/p>\n Average account balance: $271,320<\/p>\n Median account balance: $95,642<\/p>\n Even higher earners aren\u2019t where advisors say they should be \u2014 ideally with 10 times their annual salary saved. While median savings is more than their younger Gen X peers, it’s far below the benchmark for a comfortable retirement.<\/p>\n \ud83d\udc68\ud83c\udffb\u200d\ud83e\uddb3 Age 65 and older<\/p>\n Average account balance: $299,442<\/p>\n Median account balance: $95,425<\/p>\n The median 401(k) account balance for those at retirement age is just under $95,500 \u2014 nearly identical to the pre-retirement group. It suggests that Americans are reaching retirement without significantly growing their savings in their final working years \u2014 years they’re allowed higher contributions to catch up.<\/p>\n \ud83d\udd0d Read more: New 401(k) and IRA limits for 2026: Here’s how much more you can save<\/a><\/p>\n How much should you contribute to your 401(k)?<\/p>\n How much you should contribute to your 401(k) depends on your income, current expenses, expected long-term expenses, age and contribution limits.<\/p>\n Many folks may not be able to contribute nearly as much as they’d like because of current expenses. Hefty costs like mortgages and upkeep<\/a>, student loans<\/a> for adult children, healthcare needs<\/a> and more will impact longer-term savings.<\/p>\n If you\u2019re employed and aren\u2019t already doing so, maximize available employer matches whenever possible. When you get a match, it\u2019s essentially free money, as employers are giving you cash to save for retirement.<\/p>\n Keep in mind contribution limits can hold you back from saving as much as possible. For 2026, you can contribute as much as $23,000 to your 401(k) with catch-up contributions of $8,000 or more<\/a> for those over 50 \u2014 prime years for maximizing retirement savings.<\/p>\n \ud83d\udd0d Read more: ‘Investing is for the rich’: Finance expert debunks this one expensive myth<\/a><\/p>\n How much do you need to retire?<\/p>\n Not everyone has the financial means to save as much as they should for retirement. For some, retirement falls lower on the priority list for those with other pressing expenses.<\/p>\n Here\u2019s how much you should have saved for retirement by age, according to Fidelity:<\/p>\n If you are \u2026<\/p>\n You should have saved at least \u2026<\/p>\n Age 30<\/p>\n 1 times your salary<\/p>\n Age 40<\/p>\n 3 times your salary<\/p>\n Age 50<\/p>\n 6 times your salary<\/p>\n Age 60<\/p>\n 8 times your salary<\/p>\n Age 67<\/p>\n 10 times your salary<\/p>\n Remember that guidelines are not set in stone \u2014 rather, they’re good rules to follow. For instance, if you\u2019re 30 years old and earn $75,000, you should try to have that much saved in your 401(k). If you\u2019re 40 and earning $120,000 a year, shoot for around $360,000 saved.<\/p>\n \ud83d\udd0d Read more: Suze Orman says you need $5M to retire. The math tells a different story<\/a><\/p>\n Steps to take right now<\/p>\n If you\u2019re worried that your retirement savings aren’t on track for maximum savings, it\u2019s not too late to start.<\/p>\n First, determine how much you should be contributing based on your age, income and contribution limits. Then, factor that into your monthly budget<\/a>. If that amount is far more than you can afford right now, that\u2019s OK. Keep that number as a goal.<\/p>\n Add more to your retirement account when you can, and update your budget to continually increase your contribution amount. After you pay off your high-interest debt<\/a>, use those payments to boost your retirement account. Look for different ways to reduce nonessentials and save more in other areas. You can expect a Social Security check when you retire<\/a>, although how much you get depends on your income and when you claim benefits.<\/p>\n Saving for retirement isn\u2019t easy, and asking for help is OK. Talk with an expert financial advisor<\/a> or someone with experience in financial planning, especially in retirement. Having a personalized plan can help you get and stay on track right now and in the long term.<\/p>\n Other stories you’ll likeFAQs: Saving for retirement and your financial health<\/p>\n Learn more from these common questions about how 401(k)s contribute to a healthy retirement. Find related articles in our retirement planning series<\/a>.<\/p>\n What is a healthy 401(k) balance by age?<\/p>\n “Healthy” is relative, since so many folks have varying incomes, expenses, interests and needs. Rule of thumb, however, is to have the equivalent of your annual salary saved by age 30, three times your salary by 40, six times by 50, eight times by 60, and 10 times your salary by age 67. At an $80,000 annual salary, you should target about $240,000 in savings by age 40 and $480,000 by age 50.<\/p>\n How much do most Americans retire with?<\/p>\n The median account balance for people of retirement age was $95,425 in 2024, according to Vanguard. This amount typically generates about $3,817 a year in retirement income using the common 4% withdrawal rule<\/a> \u2014 or roughly $318 monthly. While Social Security is designed to supplement retirement income, the combined income from median savings and Social Security may leave retirees struggling<\/a> to maintain their standard of living. That’s why it’s important to grow retirement savings as early as possible.<\/p>\n Can I retire at 55 with $500,000 in my 401(k)?<\/p>\n You can retire early if you have the financial security to stop working before Social Security kicks in or you don\u2019t mind claiming early and getting less<\/a> than you would at full retirement age. If you use the 4% rule for retirement<\/a>, you might be able to stretch $500,000 for your entire retirement. Talk to a financial advisor that specializes in retirement<\/a> to make sure you\u2019re maximizing your savings.<\/p>\n Also, consider that you\u2019ll need to pay for health insurance if you stop working before age 65, when Medicare kicks in. Explore ways to stay covered in our guide to health insurance for early retirees<\/a>.<\/p>\n I\u2019ve saved up $10,000. Where\u2019s the best place to put it?<\/p>\n Saving up $10,000 is an impressive milestone that opens up several financial opportunities that can better position you for a more stable financial future. You can put it to work through passive income streams, contribute to growing a retirement fund or pay down high-interest debt. See our guide to the five smartest moves to make with your $10,000<\/a>.<\/p>\n What’s the best way to budget on a fixed retirement income?<\/p>\n There’s no one best way to maintain your finances after retirement, but you’ll want to build a savings and spending strategy that fits the money you bring in and how you spend it with the flexibility to absorb life’s unexpected curveballs. Get started with our seven steps to budgeting in retirement<\/a> and clever ways to save on everyday costs<\/a>.<\/p>\n About our writer<\/p>\n