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| Average 401(k) Balance by Age in 2024 | |
|---|---|
| Age | Average Balance |
| 20-24 | $7,300 |
| 25-29 | $24,000 |
| 30-34 | $45,700 |
| 35-39 | $73,200 |
| 40-44 | $109,100 |
| 45-49 | $152,100 |
| 50-54 | $199,900 |
| 55-59 | $244,900 |
| 60-64 | $246,500 |
| 65-69 | $251,400 |
| 70 and older | $250,000 |
Savings Rate by Age
According to Fidelity data from 2024, older investors tend to save a larger percentage of their income than younger investors. The larger contribution rate suggests that many workers are taking advantage of the catch-up provision for 401(k)s, which allows people ages 50 and older to deposit more (an extra $7,500 in 2023 and 2024) than the standard amount.
Baby Boomers, aged 61 to 79 in 2025, have an average 401(k) balance of $249,300 and an employee contribution rate of 11.9%.
Generation X, aged 45 to 60 in 2025, has an average 401(k) balance of $192,300 and an employee contribution rate of 10.2%.
Millennials, aged 29 to 44 in 2025, have an average 401(k) balance of $67,300 and an employee contribution rate of 8.7%.
Generation Z, aged 13 to 28 in 2025, has an average 401(k) balance of $13,500 and an employee contribution rate of 7.2%.
Average 401(k) Balance by Income Level
The average and median 401(k) balances vary widely by income.
This was the average account balance by income level in 2024, according to Vanguard:
- Under $15,000 per year: $25,716
- $15,000 to $29,999 per year: $19,858
- $30,000 to $49,000 per year: $27,278
- $50,000 to $74,999 per year: $62,618
- $75,000 to $99,999 per year: $109,770
- $100,000 to $149,999 per year: $188,329
- $150,000 or more per year: $377,488
This was the median account balance by income level in 2024, according to Vanguard:
- Under $15,000 per year: $4,055
- $15,000 to $29,999 per year: $6,475
- $30,000 to $49,000 per year: $10,928
- $50,000 to $74,999 per year: $27,528
- $75,000 to $99,999 per year: $53,112
- $100,000 to $149,999 per year: $98,434
- $150,000 or more per year: $221,220
Tip
Depending on your goals, saving in a 401(k) might not be enough for what you want out of retirement. Talk to a financial professional to evaluate other savings vehicles.
How Much Should You Save for Retirement?
Fidelity has some concrete suggestions:
- By age 30, you should have the equivalent of your annual salary saved. For example, if you’re earning $50,000, you should have $50,000 banked for retirement.
- By age 40, you should have three times your annual salary saved.
- By age 50, you should have six times your salary saved.
- By age 60, you should have eight times your salary saved.
- By age 67, you should have 10 times your annual salary saved. For example, if you’re earning $75,000 per year, you should have $750,000 saved.
Another Way to Estimate Retirement Savings
There’s also the tried-and-true 80% rule: Save enough to have 80% of your pre-retirement salary. For example, if you make roughly $75,000 a year, you’d need 80% of that, or $60,000 per year during your retirement years, to maintain the same standard of living you had while working.
14.3%
The average 401(k) savings rate—which combines both employer and employee contribution rates—in the first quarter of 2025.
What’s the Retirement Savings Reality?
If you compare recommended saving amounts with Fidelity’s 401(k) average balance figures, it appears that most Americans are behind in saving for retirement, even if they have savings in addition to what’s in their 401(k)s.
A 2019 U.S. Government Accountability Office study found that nearly 48% of Americans ages 55 and older didn’t have any retirement nest egg or traditional pension plan as of 2016.
Those who did have retirement accounts didn’t have enough money in them. According to our research, 56- to 61-year-olds have an average of $163,577. Those ages 65 to 74 have even less.
If that money were turned into a lifetime annuity, it would only amount to a few hundred dollars a month. Any financial planner would agree that it’s not nearly enough to get by on.
In its 20th annual survey, the Transamerica Center for Retirement Studies found that millennials had median retirement savings of approximately $23,000, compared with $64,000 for Gen Xers and $144,000 for baby boomers.
Similar findings come from the Economic Policy Institute. It estimated in 2019 that those ages 32 to 37 had saved around $31,644. That figure rose substantially to around $67,270 for those ages 38 to 43. For those ages 44 to 49, the average retirement savings were $81,347. Finally, those ages 50 to 55 had saved an average of $124,831.
Although these may seem like healthy amounts, they are well below even the most conservative goals.
According to Transamerica, part of the problem might be a lack of financial understanding and education. Sixty-eight percent of workers believed they didn’t know as much about retirement as they should.
In fact, 37% of workers said they didn’t know anything about asset allocation, and around 22% admitted to not knowing how their retirement money was invested.
For that matter, only 20% of Americans said they knew a great deal about Social Security, even though nearly 74% expect it to be a significant source of income when they stop working.
Important
The Social Security Administration states that its retirement benefits are designed to replace only about 40% of the average worker’s wages.
Tips to Help You Save for Retirement
That most Americans, especially women, don’t have nearly enough savings to sustain them through retirement is sad but true. How do you avoid that fate? Here are some steps that you can take, whether you’re early in your career or closer to your retirement.
- Take the time to carefully consider and estimate how much you’ll need to live comfortably after your 9-to-5 days are over. Based on that, you’ll be better able to develop a plan to accrue the sum you need, by the time you need it.
- Maximize your contributions to your workplace plan. If you cannot contribute that much, at least contribute the amount needed to enable the matching employer contributions that can boost your savings.
- If you haven’t yet, open an IRA and contribute as much as you can to it annually as well. For 2025, you can contribute up to $7,000, or $8,000 if you’re 50 or older.
- Invest more aggressively earlier in your career to capitalize on opportunities to increase your account value. Even if you’re older, you may want to consider adjusting your allocations to allow for greater growth. Speak to a financial advisor to be sure you’re up to speed on different asset allocations and what might be appropriate for your needs and age.
- Examine the fees related to your investments. Since they can have an impact on your account balances over time, lowering them should be a priority.
- Learn how Social Security (and Medicare) work, and what you might expect from them in benefits. Register for an online account at the Social Security Administration’s website. You’ll be able to view and estimate how much you’ll receive per month in benefits when you retire, based on the years you’ve worked and your earnings.
Of course, start saving and investing as early as you possibly can. The longer you have, the better, especially where the power of compounding interest is concerned. Retirement may seem a long way off, but when it comes to saving for it, the days can dwindle away quickly and any delay costs more in the long run.
What Is a Solid 401(k) Balance for a 30-Year-Old Person?
Fidelity reports that individuals ages 13 to 28 have an average 401(k) balance of $13,500. Those between 29 and 44 have $67,300 on average. It recommends that by age 30, you should have an account balance equal to 1× your annual salary.
How Much Should Someone in Their 60s Have in Their 401(k)?
According to Fidelity, the average 401(k) balance for the 61-to-79 age group is $249,300. It suggests that by age 60, you should have eight times your annual salary saved. Of course, you shouldn’t limit your saving effort. The more you can add to your savings at any age, the better.
How Much Money Is Needed for a Comfortable Retirement?
Fidelity estimates that the average person should expect to spend 55% to 80% of their annual income during their retirement, based on their retirement lifestyle and healthcare costs. You can use that range to estimate what dollar amount that suggests for you.
The Bottom Line
Saving for your retirement is perhaps one of the most important financial goals that you will ever have. When you can’t, or don’t wish to, work any longer, you will need substantial savings to sustain yourself, whatever your lifestyle.
Carve out the time to review your savings today. Launch a concrete savings plan if you’re younger or a corrective savings course of action if you’re older. Be disciplined about putting money aside now to ensure a financially secure future.
