The average 401(k) balance is $118,600. That number steadily increases quarterly as Americans take retirement savings seriously, due to changes in other retirement income sources and uncertainty about Social Security for future generations.
People have many options for how to save for retirement. However, the most common retirement account type is a 401(k) because many employers offer these accounts alongside matching contributions, enticing employees to contribute. Plus, 401(k)s offer a way to save pre-tax toward retirement, which can reduce tax burdens now. Reviewing the average 401(k) balance by age can help you understand how you’re doing compared to your peers and adjust your savings rate accordingly to catch up or stay in line with where you should be to enjoy a relaxing retirement.
The Average 401(k) Balance by Age
What is the average 401(k) balance? According to Fidelity, the average balance as of the end of the fourth quarter of 2023 was $118,600. That’s a 10% increase over the average balance in Q3 2023 and a 32% increase over the average balance 10 years prior in 2013.
If you want to see how you're saving for your retirement, you might want to see it broken down more granularly based on age. Review this table to see how people’s 401(k) balance grows as they age.
| Age | Average 401(k) | Median 401(k) |
| 20s | $74,460 | $29,753 |
| 30s | $160,517 | $69,718 |
| 40s | $344,182 | $151,274 |
| 50s | $558,740 | $247,338 |
| 60s | $555,621 | $209,382 |
| 70s | $417,379 | $103,219 |
Average 401(k) balance for 20s
Average 401(k) balance: $74,460
Median 401(k) balance: $29,753
According to Experian, individuals in their 20s carry an average of $27,251 in debt. That makes it challenging to save for retirement while getting started with items like a car, solo living arrangements, etc. But the sooner young adults can get started putting back money for retirement, the more they’ll reap the benefits of compound interest and ROI from investments to meet their savings goals.
Average 401(k) balance for 30s
Average 401(k) balance: $160,517
Median 401(k) balance: $69,718
Once adults reach age 30, many begin to get married. According to the U.S. Census Bureau, the average age for marriage in 2022 was 30.5 for men and 28.6 for women. This can be an opportunity to pool income, finish paying down high-interest debt and get more serious about saving toward retirement.
Average 401(k) balance for 40s
Average 401(k) balance: $344,182
Median 401(k) balance: $151,274
By age 40, experts recommend maxing out your 401(k) contribution as you head toward the midway point in your career and grow closer to retirement. The maximum contribution for 2024 is $23,000. If you can’t reach that maximum, grow your income and adjust your budget to accommodate more aggressive saving rates.
Average 401(k) balance for 50s
Average 401(k) balance: $558,740
Median 401(k) balance: $247,338
At this point, you are eligible for catch-up contributions, which increase your total contribution limit by $7,500 to $30,500 in 2024. This also lowers your current tax obligation, which can make it easier to save toward retirement.
Average 401(k) balance for 60s
Average 401(k) balance: $555,621
Median 401(k) balance: $209,382
As you approach retirement age, you’ll have a clearer view of your savings and whether you should make adjustments to your strategy and savings rates. You’ll also have a better idea of your Social Security benefits and at what age you should start drawing those benefits to maximize them.
Average 401(k) balance for 70s
Average 401(k) balance: $417,379
Median 401(k) balance: $103,219
You’ll notice that the average 401(k) balance starts declining, for Americans, in their 70s. That’s because many people have retired at this point and are beginning to draw on those funds. The average age to retire is 65, meaning many people have already taken 401(k) distributions for 5 years once they are in their 70s.
How Much Should You Save for Retirement?
With varying income levels and obligations, knowing whether you should have the average 401(k) amount at retirement or more or less is tough. A more specific way of calculating this is by using your current salary and multiplying that by your age. Here’s what Fidelity recommends to reach the average retirement savings by age.
- Age 30: You should have your current total salary saved in your retirement account.
- Age 35: Experts recommend having 2 times your current salary saved in your retirement account.
- Age 40: You should have 3 times your current salary saved in your retirement account.
- Age 50: With compounding interest and fewer obligations at this point in life, you should have 6 times your salary saved.
- Age 55: Catchup contributions can help you reach 7 times your salary in your account as you work with a financial advisor to strategize your final decade of working.
- Age 60: Closing in on retirement age, you should now have 8 times your current salary in your retirement account.
- Age 67: To be ready for retirement, you should have 10 times your salary saved to be ready to retire.
Prepare for the Lifestyle You Want in Retirement
After reviewing average retirement account balances by decade, you might feel discouraged because of where your savings are at. Don’t let the numbers get you down. Instead, review your lifestyle goals for retirement and adjust your savings rate based on those goals.
Frequently Asked Questions
What is a good 401k balance by age?
A good 401k balance by age is one that is based on your current salary. You should have the equivalent of your salary by age 30 and increase to 10 times your salary by age 67.
Can I retire at 62 with $400,000 in 401k?
While you could retire at age 62 with $400,000 in your 401(k), you’ll live on a tight budget and have little room for inflation or surprise expenses. If you can, continue working for a few more years and max out your contribution limits to maximize your savings.
How many people have $1,000,000 in retirement savings?
Only about 10% of all retirees have $1 million saved before retirement. Most have much less saved and yet still choose to retire.
About Rebekah Brately
Rebekah Brately is an investment writer passionate about helping people learn more about how to grow their wealth. She has more than 12 years of writing experience, focused on technology, travel, family and finance. Her work has been published in Benzinga, Hearst Bay Area, FreightWaves and Dallas Observer publications.