How much should you have in your 401(k)? See how your balance compares by age
Why you can trust us
We may earn money from links on this page, but commission does not influence what we write or the products we recommend. AOL upholds a rigorous editorial process to ensure what we publish is fair, accurate and trustworthy.
How much should you have in your 401(k)? See how your balance compares by age
Dori ZinnFebruary 5, 2026 at 10:51 PM
23
How much should you have in hour 401(k)? Average balances by age (JGI/Jamie Grill via Getty Images)
Retirement savings vary widely depending on your age, income and retirement goals — 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).
The average 401(k) balance is $148,153 among Vanguard's 5 million participants, according to the firm's latest How America Saves report. But that number tells only part of the story. The median balance — the middle number after lining up all balances from lowest to highest — sits at just $38,176, almost $110,000 lower than the average.
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.
Retirement savings aren't the same for everyone. Here's how much Americans have saved by age, what experts recommend — and what you need to catch up or stay on track for a comfortable retirement.
Average 401(k) balance by age
For the 2026 tax year, you can save as much as $24,500 in your 401(k) — 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.
Here's how age groups stack up on average and median 401(k) balances.
Age
Average account balance
Median account balance
25 and younger
$6,899
$1,948
25 to 34
$42,640
$16,255
35 to 44
$103,552
$39,958
45 to 54
$188,643
$67,796
55 to 64
$271,320
$95,642
65 and older
$299,442
$95,425
Source: How America Saves 2025, Vanguard
👩🎓 Ages 25 and younger -
Average account balance: $6,899
Median account balance: $1,948
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.
👩🏽🦰 Ages 25 to 34 -
Average account balance: $42,640
Median account balance: $16,255
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.
👨🏾🦰 Ages 35 to 44 -
Average account balance: $103,552
Median account balance: $39,958
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 — significantly more than most millennials have saved.
🧓 Ages 45 to 54 -
Average account balance: $188,643
Median account balance: $67,796
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, that target would be roughly $554,820. While higher earners might have six-figure balances, most haven't crossed the $100K threshold.
👩🏽🦳 Ages 55 to 64 -
Average account balance: $271,320
Median account balance: $95,642
Even higher earners aren’t where advisors say they should be — 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.
👨🏻🦳 Age 65 and older -
Average account balance: $299,442
Median account balance: $95,425
The median 401(k) account balance for those at retirement age is just under $95,500 — nearly identical to the pre-retirement group. It suggests that Americans are reaching retirement without significantly growing their savings in their final working years — years they're allowed higher contributions to catch up.
🔍 Read more: New 401(k) and IRA limits for 2026: Here's how much more you can save
How much should you contribute to your 401(k)?
How much you should contribute to your 401(k) depends on your income, current expenses, expected long-term expenses, age and contribution limits.
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, student loans for adult children, healthcare needs and more will impact longer-term savings.
If you’re employed and aren’t already doing so, maximize available employer matches whenever possible. When you get a match, it’s essentially free money, as employers are giving you cash to save for retirement.
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 for those over 50 — prime years for maximizing retirement savings.
🔍 Read more: 'Investing is for the rich': Finance expert debunks this one expensive myth
How much do you need to retire?
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.
Here’s how much you should have saved for retirement by age, according to Fidelity:
If you are …
You should have saved at least …
Age 30
1 times your salary
Age 40
3 times your salary
Age 50
6 times your salary
Age 60
8 times your salary
Age 67
10 times your salary
Remember that guidelines are not set in stone — rather, they're good rules to follow. For instance, if you’re 30 years old and earn $75,000, you should try to have that much saved in your 401(k). If you’re 40 and earning $120,000 a year, shoot for around $360,000 saved.
🔍 Read more: Suze Orman says you need $5M to retire. The math tells a different story
Steps to take right now
If you’re worried that your retirement savings aren't on track for maximum savings, it’s not too late to start.
First, determine how much you should be contributing based on your age, income and contribution limits. Then, factor that into your monthly budget. If that amount is far more than you can afford right now, that’s OK. Keep that number as a goal.
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, 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, although how much you get depends on your income and when you claim benefits.
Saving for retirement isn’t easy, and asking for help is OK. Talk with an expert financial advisor 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.
Other stories you'll like -
401(k) withdrawal rules: What to know before cashing out — and how to avoid penalties
Best low-risk investments for retirees: Steady returns to protect your nest egg
The 5-step withdrawal plan that can stretch your retirement savings
5 red flags to watch out for when choosing a financial advisor
8 outdated 'rules’ worth breaking in retirement
FAQs: Saving for retirement and your financial health
Learn more from these common questions about how 401(k)s contribute to a healthy retirement. Find related articles in our retirement planning series.
What is a healthy 401(k) balance by age?
"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.
How much do most Americans retire with?
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 — 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 to maintain their standard of living. That's why it's important to grow retirement savings as early as possible.
Can I retire at 55 with $500,000 in my 401(k)?
You can retire early if you have the financial security to stop working before Social Security kicks in or you don’t mind claiming early and getting less than you would at full retirement age. If you use the 4% rule for retirement, you might be able to stretch $500,000 for your entire retirement. Talk to a financial advisor that specializes in retirement to make sure you’re maximizing your savings.
Also, consider that you’ll 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.
I’ve saved up $10,000. Where’s the best place to put it?
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.
What's the best way to budget on a fixed retirement income?
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 and clever ways to save on everyday costs.
About our writer
Dori Zinn is a personal finance journalist with more than a decade of experience covering credit, debt, investing, real estate, student loans, college affordability and personal loans. Her work has been featured in the New York Times, the Wall Street Journal, Yahoo, Forbes and CBS News, among other top publications. She loves helping people learn about money.
Article edited by Kelly Suzan Waggoner
Source: “AOL Money”
