How much should you have in your 401(k)? Here's how your balance compares to others by age

Saving for retirement is easy to preach but not always simple enough to practice. The amount people should save for retirement and the amount they stash away aren’t exactly the same.

How much you save depends on how old you are, when you want to retire and your long-term plans. For some workers, 401(k) contributions might get maxed out every year. For others, there’s a chance you haven’t contributed to your 401(k) in a few years — if at all.

The average 401(k) balance for five million Vanguard participants was $134,128 across all age groups in 2023, according to the firm's How America Saves report. However, this figure doesn’t illustrate the entire story, since a small group of very wealthy savers pulls the average up significantly.

The median 401(k) balance for the same participants — the middle number when you line up all balances from lowest to highest — paints a different picture at just $35,286, almost $100,000 less than the average. That’s because as many as 28% of the accounts had $10,000 or less in them, while 15% had $250,000 or more.

The data goes to show that retirement savings aren't the same for everyone. Learn how much the average American has saved by age, and rules of thumb for how much you should have in your own 401(k) for a solid road to a comfortable retirement.

Average 401(k) balance by age

For tax year 2024, you can save as much as $23,000 in your 401(k), with that amount increasing to $23,500 for tax year 2025.

If you’re 50 or older, you can add up to $7,500 in catch-up contributions in 2024 and 2025 for a total of $30,500 this year and $31,000 next year. People who are between 60 and 63 have a higher catch-up limit of $11,250 for a total of $34,750 in tax year 2025.

Here's how age groups stack up on average and median 401(k) balances as of 2024:

Ages 25 and younger

• Average account balance: $7,351

• Median account balance: $2,816

Young adults recently graduating from college or just starting out in their careers have the lowest account balances. How much you saved in your 20s should vastly differ from what you saved in your 60s. Typically, younger folks new to the workforce don’t have as much savings as those working most of their lives.

Ages 25 to 34

• Average account balance: $37,557

• Median account balance: $14,933

Even though older Gen Zers and young millennials have been in the workforce for a few years, their median account balance is less than $15,000. A few savers contribute much more because they earn more, which is why the average account balance is skewed higher.

Ages 35 to 44

• Average account balance: $91,281

• Median account balance: $35,537

Millennials have more savings than their younger peers, but their median account balance shows that they don’t have enough in savings. A good guideline is to have at least 3 times your salary by age 40, according to Fidelity.

Ages 45 to 54

• Average account balance: $168,646

• Median account balance: $60,763

Young Gen Xers who are just entering pre-retirement age have a median account balance of $60,763. The goal is to have 6 times your salary by the time you hit age 50. If that’s the case, that would mean these folks are earning $10,000 a year, while the 2023 median income for folks ages 65 and older was $92,470, according to the Census Bureau.

Ages 55 to 64

• Average account balance: $244,750

• Median account balance: $87,571

Even higher earners aren’t saving as much as they should be by this age. Some Gen Xers are contributing much more than others, which explains the higher account balance compared to the median account balance. But most folks in this age bracket haven’t broken the six-figure mark.

Age 65 and older

• Average account balance: $272,588

• Median account balance: $88,488

Folks at this age should have at least 10 times their salary saved. Currently, those of retirement age don’t have much more than their younger peers — the median account balance for this age group is $917 more than those ages 55 to 64.

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, 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 2024 and 2025, you can contribute as much as $23,000 to your 401(k).

Dig deeper: 12 states with the lowest average 401(k) balances

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:

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 years of age earning $120,000 a year, your account should have around $360,000 in it.

Steps to take right now

If you’re worried that your retirement account isn’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 some sort of Social Security payout when you retire, although how much you get depends on your income and when you start to receive 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.

Dig deeper: How to plan your retirement withdrawal strategy

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FAQs: Saving for retirement and your financial health

Learn more in these common questions about 401(k)s and how to 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 ten times your salary by age 67. For example, if you earn $80,000 annually, 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 less than $89,000 in 2024, according to Vanguard. This amount typically generates only about $3,560 per year in retirement income using the common 4% withdrawal rule — or roughly $297 monthly. While Social Security benefits help supplement retirement income, the combined income from median savings and Social Security may still leave many 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 Social Security 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 who specializes in retirement to make sure you’re maximizing your retirement 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 see our roundup of the best discounts for seniors and retirees for simple ways to save on your everyday costs.

Sources

• How America Saves in 2024 [PDF], Vanguard. Accessed December 11, 2024.

• Figure 1. Median Household Income and Percent Change by Selected Characteristics [PDF], U.S. Census Bureau. Accessed December 11, 2024.

• 401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000, IRS. Accessed December 11, 2024.

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