The Average 401(k) Balance by Age (2024)

Knowing the average retirement savings by age can be a motivator that helps you focus your own savings efforts and keeps your on track to meet your goals—which are yours alone. After all, the steps you should take to ensure a safe and happy financial future aren't based on what your peers require but on what you estimate you'll need.

Nonetheless, having a benchmark for an appropriate amount of retirement savings at any given time isn't a bad idea. Here's a look at what your age group (and others) have put away in their 401(k)s.

Key Takeaways

  • Americans' 401(k) balances have slipped slightly, primarily due to market activity.
  • 401(k) account balances and contribution rates vary greatly by age, with those in their 60s racking up the biggest numbers.
  • The average employee 401(k) contribution rate, as a percentage of salary, was 13.8% in 2022.
  • According to the Social Security Administration, its retirement benefits are only designed to replace about 40% of the average worker's wages.
  • Most Americans aren't saving sufficient amounts of money for their retirement years, several studies show.

Average 401(k) Plan Balances by Age

AgeAverage 401(k) Account Balance
20-29$10,500
30-39$38,400
40-49$93,400
50-59$160,000
60-69$182,100
70-79$171,400

According to Fidelity Investments, the financial services firm that administers more than $9.6 trillion in assets and has 40.7 million workplace participant accounts, the average 401(k) plan balance decreased to $97,200 in the third quarter of 2022.

However, the savings rate (a combination of employee and employer 401(k) contributions), was about 14%. This percentage almost met Fidelity's suggested savings rate of 15%.

How does workplace plan saving break down by age? Here's how Fidelity crunches the numbers.

Twentysomethings (Age 20 to 29)

  • Average 401(k) balance: $10,500
  • Contribution rate (% of income): 7%

The participation rate of Generation Z participants in defined contribution plans in Q3 2021 was 15.8%. In 2019, it was 12.6%. Fidelity defines Gen Z individuals as those born from 1997 to 2012.

Thirtysomethings (Age 30 to 39)

  • Average 401(k) balance: $38,400
  • Contribution rate (% of income): 8%

Among millennials (those born between 1981 and 1996), women investors opened 31.3% more IRA accounts in Q3 2021 than they opened a year before. Millennials overall opened 58.5% more Roth IRA accounts in Q3 2021 than they had in Q3 2020. The amount of contributions increased 58.1% in the same period.

The average combined assets at Fidelity of millennials investing in both 401(k) plans and IRAs increased 23.5% from Q3 2020 to Q3 2021.

Fortysomethings (Age 40 to 49)

  • Average 401(k) balance: $93,400
  • Contribution rate (% of income): 8%

The account balance size for Gen Xers may reflect the fact that these folks have logged a good couple of decades in the workforce and have been contributing to plans for that long.

Fiftysomethings (Age 50 to 59)

  • Average 401(k) balance: $160,000
  • Contribution rate (% of income): 10%

The jump in this contribution rate over earlier age groups suggests that many workers are taking advantage of the catch-up provision for 401(k)s, which allows people age 50 and over to deposit more (an extra $7,500 in 2023 as well as 2024) than the standard amount.

Sixtysomethings (Age 60 to 69)

  • Average 401(k) balance: $182,100
  • Contribution rate (% of income): 11%

Workplace plan savings-wise, it's now or never for this group. This contribution rate suggests that many baby boomers are using their workplace plans to add as much as possible to their retirement savings. Fidelity research indicates that Baby Boomers may be too aggressively invested.

Seventysomethings (Age 70 to 79)

  • Average 401(k) balance: $171,400
  • Contribution rate (% of income): 12%

As of January 2020, the Further Consolidated Appropriations Act removed the age limit that made it impossible for individuals 70½ or older to make contributions to traditional IRAs. This opened up an additional retirement savings option for those currently working or running their own business.

Of course, we're living in a vastly different world today than in years past. How each generation's ability to save for retirement will be affected by the financial impacts of the COVID-19 pandemic and other global events is uncertain.

How Much Should You Save for Retirement?

Fidelity has some pretty concrete ideas.

  • By age 30, you should have one time 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 already saved.
  • By age 50, you should have six times your salary in an account.
  • By age 60, you should have eight times your salary working for you.
  • By age 67, your total savings total goal is 10 times the amount of your current annual salary. So, for example, if you're earning $75,000 per year, you should have $750,000 saved.

Another Way to Estimate 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.

13.9%

The 2021 average workplace defined contribution plan savings rate as a percentage of salary (employee and employer rates combined).

What's the Retirement Savings Reality?

If you compare recommended saving amounts to 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 Government Accountability Office study found that nearly 48% of Americans age 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 age 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 to $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 age 32 to 37 had saved around $31,644. That figure rose substantially to around $67,270 for those age 38 to 43. For those age 44 to 49, the average retirement savings were $81,347. Finally, those age 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.

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, espically 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 2022, you can contribute up to $6,000, or $7,000 if you're 50 or older. In 2023, that limit increases to $6,500, or $7,500 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 anydelay costs more in the long run.

What Is a Solid 401(k) Balance for a 30-Year-Old Person?

Fidelity reports that individuals between the ages of 20 and 29 have an average 401(k) balance of $10,500. Those in their 30s have $38,400 on average. It recommends that by age 30, you should have an account balance equal to 1x 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 60-to-69 age group is $182,100. 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 between 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 you, whatever your lifestyle.

Carve out the time to review your savings today. Launch a concrete savings plan if you're younger or corrective savings course of action if you're older. Be disciplined about putting money aside now to ensure a financially secure future.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.

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  2. Fidelity. "Fidelity Building Financial Futures Report."

  3. Social Security Administration. "Fact Sheet for Workers Ages 18–48."

  4. Fidelity. “Q3 2023 Business Update.”

  5. Fidelity. “Aim To Save at Least 15% of Your Income Annually for Retirement.”

  6. Fidelity. "Building Financial Futures Q3 2023.”

  7. Fidelity. "Building Financial Futures-Trends and Insights of Those Saving for Retirement Across America 3rd Quarter 2021."

  8. Fidelity. "Building Financial Futures-Trends and Insights of Those Saving for Retirement Across America 3rd Quarter 2021."

  9. Internal Revenue Service. “2022 Limitations Adjusted as Provided in Section 415(d),” Page 2.

  10. Internal Revenue Service. "Retirement Topics - Catch-Up Contributions."

  11. Internal Revenue Service. "New Law Helps People Save for Retirement; Other Retroactive Changes Impact Many Taxpayers."

  12. Fidelity. "How Much Do I Need to Retire?"

  13. U.S. Government Accountability Office. "Retirement Security: Most Households Approaching Retirement Have Low Savings, an Update."

  14. Transamerica Center for Retirement Studies. "Retirement Security Amid COVID-19: The Outlook of Three Generations," Page 80.

  15. Economic Policy Institute. "The State of American Retirement: How 401(k)s Have Failed Most American Workers."

  16. Transamerica Center for Retirement Studies. "18th Annual Transamerica Retirement Survey," Page 16.

  17. Transamerica Center for Retirement Studies. "18th Annual Transamerica Retirement Survey," Pages 13, 20, and 49.

  18. Social Security Administration. "Alternate Measures of Replacement Rates for Social Security Benefits and Retirement Income."

  19. Internal Revenue Service. "401(k) Limit Increases to $22,500 for 2023; IRA Limit Increases to $6,500."

  20. Internal Revenue Service. "Retirement Topics - IRA Contribution Limits."

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  22. Fidelity. "How Does Your Retirement Savings Progress Stack Up?"

  23. Fidelity Investments. "How Much Will You Spend in Retirement?"

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The Average 401(k) Balance by Age (2024)

FAQs

The Average 401(k) Balance by Age? ›

If you have $400,000 in the bank you can retire early at age 62, but it will be tight. The good news is that if you can keep working for just five more years, you are on track for a potentially quite comfortable retirement by full retirement age.

What is the average 401k balance by age? ›

Average and median 401(k) balances by age
Age rangeAverage balanceMedian balance
25-34$30,017$11,357
35-44$76,354$28,318
45-54$142,069$48,301
55-64$207,874$71,168
2 more rows
Mar 13, 2024

Can I retire at 62 with $400,000 in 401k? ›

If you have $400,000 in the bank you can retire early at age 62, but it will be tight. The good news is that if you can keep working for just five more years, you are on track for a potentially quite comfortable retirement by full retirement age.

At what age should you have 100000 in 401k? ›

“By the time you hit 33 years old, you should have $100,000 saved somewhere,” he said, urging viewers that they can accomplish this goal. “Save 20 percent of your paycheck and let the market grow at 5% to 7% per year,” O'Leary said in the video.

What is the recommended retirement balance by age? ›

By age 50, you would be considered on track if you have three-and-a-half to six times your preretirement gross income saved. And by age 60, you should have six to 11 times your salary saved in order to be considered on track for retirement.

What is a good 401k balance at age 65? ›

Average and median 401(k) balance by age
AgeAverage Account BalanceMedian Account Balance
35-44$76,354$28,318
45-54$142,069$48,301
55-64$207,874$71,168
65+$232,710$70,620
3 more rows
Feb 6, 2024

What is the average 401k balance in the US? ›

Average 401(k) Balance by Age
AgeAverage 401(k) BalanceMedian 401(k) Balance
35 to 44$97,020$36,117
45 to 54$179,200$61,530
55 to 64$256,244$89,716
65 and older$279,997$87,725
2 more rows
Sep 7, 2023

How many people have $1000000 in retirement savings? ›

However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings.

Is $1,500 a month enough to retire on? ›

While $1,500 might not be enough for non-housing retirement expenses for many people, it doesn't mean it's impossible to stick to this or other amounts, such as if you're already retired and don't have the ability to increase your budget.

Is $600,000 enough to retire at 62? ›

Say that you plan to retire at 62 with $600,000 saved. You expect to withdraw 4% each year, starting with a $24,000 withdrawal in Year One. Your money earns a 5% annual rate of return while inflation stays at 2.9%. Based on those numbers, $600,000 would be enough to last you 30 years in retirement.

How much do I need in 401k to get $2000 a month? ›

With the $1,000 per month rule, if you plan to withdraw 5% of your savings each year, you'll need at least $240,000 in savings. If you aim to take out $2,000 every month at a withdrawal rate of 5%, you'll need to set aside $480,000. For $3,000, you would aim to save $720,000.

How much money do most people retire with? ›

What is the average and median retirement savings? The average retirement savings for all families is $333,940 according to the 2022 Survey of Consumer Finances.

At what age is 401k withdrawal tax free? ›

Once you reach 59½, you can take distributions from your 401(k) plan without being subject to the 10% penalty. However, that doesn't mean there are no consequences. All withdrawals from your 401(k), even those taken after age 59½, are subject to ordinary income taxes.

How much does the average American retire with? ›

The above chart shows that U.S. residents 35 and under have an average of $30,170 in retirement savings; those 35 to 44 have an average $131,950; those 45 to 54 have an average $254,720; those 55 to 64 have an average $408,420; those 65 to 74 have an average $426,070; and those over 70 have an average $357,920.

Can I retire on 500k plus Social Security? ›

Key takeaways: Most people in the U.S. retire with less than $1 million. $500,000 is a healthy nest egg to supplement Social Security and other income sources. Assuming a 4% withdrawal rate, $500,000 could provide $20,000/year of inflation-adjusted income.

Can I retire at 60 with 300k? ›

£300k in a pension isn't a huge amount to retire on at the fairly young age of 60, but it's possible for certain lifestyles depending on how your pension fund performs while you're retired and how much you need to live on.

How much money do you need to retire with $100000 a year income? ›

So, if you're aiming for $100,000 a year in retirement and also receiving Social Security checks, you'd need to have this amount in your portfolio: age 62: $2.1 million. age 67: $1.9 million. age 70: $1.8 million.

How much should a 70 year old have in a 401k? ›

How Much Should a 70-Year-Old Have in Savings? Financial experts generally recommend saving anywhere from $1 million to $2 million for retirement. If you consider an average retirement savings of $426,000 for those in the 65 to 74-year-old range, the numbers obviously don't match up.

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