- According to Vanguard's annual report, the average 401(k) balance across all age groups is $134,128.
- Comparing average 401(k) benchmarks can help you fine-tune your retirement planning strategy.
- If you're below the benchmark, you can boost your 401(k) with help from a financial advisor.
A 401(k) plan is one of the best retirement plans for U.S. workers to build long-lasting wealth. But how can you ensure you are saving effectively?
While there isn't a set number to aim for, you can use 401(k) benchmarks to ensure you're on track to reach your goal and fine-tune your long-term investing strategy.
Vanguard analyzes data from millions of retirement accounts annually to find the average and median 401(k) plan balances. Understanding benchmarks like the average 401(k) balance at retirement and average 401(k) savings by age can help determine how much you need to retire and whether you're on track to reach those goals.
Vanguard's "How America Saves" 2024 report found that the average 401(k) balance is $134,128. The median 401(k) balance is $134,128. The 2025 report has not yet been published.
Here is how much Americans have saved in their 401(k)s by each age and income, including the average 401(k) balance at retirement.
Average 401(k) balance by age
A 401(k) is more than a savings account. It is a wealth-building tool that ensures a comfortable, secure, and stress-free retirement. By understanding how age, income, and gender impact your retirement savings, you can make better-informed decisions that align with your demographic and your investment goals.
Here is the average 401(k) balance and median 401(k) balance by age using Vanguard's retirement savings statistics from the "How America Saves" report.
| Age | Average 401(k) balance | Median 401(k) balance |
| Under 25 | $7,351 | $2,816 |
| 25 to 34 | $37,557 | $14,933 |
| 35 to 44 | $91,281 | $35,537 |
| 45 to 54 | $168,646 | $60,763 |
| 55 to 64 | $244,750 | $87,571 |
| 65 and up | $272,588 | $88,488 |
In comparison, Fidelity's 2025 report (using Q3 2024 data) found 401(k) and IRA averages by generation.
| Generation | Ages in 2025 | Average 401(k) balance | Average IRA balance | Employee contribution | Employer contribution |
| Gen Z (1997-2012) | 13 to 28 | $13,000 | $6,497 | 7.2% | 3.8% |
| Millennials (1981-1996) | 29 to 44 | $66,500 | $24,097 | 8.6% | 4.6% |
| Gen X (1965-1980) | 45 to 60 | $191,900 | $100,169 | 10.2% | 5.0% |
| Baby boomers (born 1946-1964) | 61 to 88 | $250,900 | $250,966 | 11.8% | 5.1% |
Older generations have greater 401(k) and IRA balances than younger generations. Older workers may have higher salaries, giving them greater financial flexibility to contribute more toward retirement, and they may have had more time in the workforce allowing their savings to grow.
Moreover, those age 50 and older can contribute an additional $7,500 in catch-ups yearly.
Alternative 401(k) benchmarks
Age isn't the only way to compare your 401(k) balance to see if you're on track to retire. Here are other 401(k) benchmarks to consider.
Average 401(k) balance by income level
Here's annual income compared against the average 401(k) balance and median 401(k) balance:
| Annual income | Average 401(k) balance | Median 401(k) balance |
| Less than $15,000 | $24,175 | $3,691 |
| $15,000 to $29,999 | $18,610 | $6,142 |
| $30,000 to $49,999 | $25,096 | $10,072 |
| $50,000 to $74,999 | $59,273 | $24,939 |
| $75,000 to $99,999 | $106,875 | $51,073 |
| $100,000 to $149,999 | $178,818 | $91,323 |
| $150,000 and above | $336,470 | $188,678 |
Average 401(k) balance by gender
| Gender identity | Average 401(k) balance | Median 401(k) balance |
| Men | $157,489 | $42,263 |
| Women | $112,401 | $31,164 |
On average, men save more for retirement than women. Across all age levels, Vanguard's data indicates that women have a median 401(k) account balance of just over $11,099 less than men's. Men and women were the only genders analyzed.
While a large disparity in savings exists, women often need greater retirement savings than men to retire comfortably. Women tend to live longer and, therefore, need more long-term care than men, which could require greater spending in retirement.
Average 401(k) balance by industry
Here's how the average balances break down by industry.
| Industry | Average balance | Median balance |
| Agriculture, mining, construction | $185,511 | $47,517 |
| Finance, insurance, real estate | $184,511 | $53,839 |
| Business, professional, nonprofit | $141,515 | $38,189 |
| Manufacturing | $132,599 | $34,000 |
| Transportation, utilities, communications | $105,335 | $23,261 |
| Media, entertainment, leisure | $178,288 | $78,929 |
| Education and health | $96,258 | $24,114 |
| Wholesale, retail | $102,452 | $23,254 |
People who work in agriculture, mining, and construction contribute significantly to retirement, with the average industry worker's account balance well over $180,000.
However, teachers, healthcare workers, and people who work in wholesale and retail tend to lag, with average account balances under $97,000.
Factors influencing 401(k) balances
Factors influencing 401(k) balances include age, income level, employee benefits, and economic conditions.
Age and years of saving
Time is a crucial part of financial planning for retirement. Contributing money from an early age allows your money to reap the full benefits of compound interest. Even modest contributions can grow into significant savings over time when deposited regularly.
Income level
Higher income typically leads to increased 401(k) contributions, resulting in a larger retirement balance.
However, Vanguard's data found that households with a higher annual income had lower average and median 401(k) balances than in previous years. This may be due to inflated prices and the general increased cost of living that pressured households to contribute less toward retirement and even make 401(k) hardship withdrawals.
It's important to note that prematurely withdrawing from your retirement savings can significantly impact your long-term growth potential.
Investment choices
How you invest the money in your 401(k) is just as important as the initial contribution. In addition to gaining compound interest, you must invest in stocks, bonds, ETFs, and other retirement funds to combat inflation and build wealth.
Diversifying your investment is key to managing risk and volatility in your portfolio. Investment diversification in a 401(k) may also boost growth by getting exposure across multiple market sectors and different kinds of assets.
Economic conditions
As the market fluctuates, so will the composition of your investment portfolio. Your age and proximity to retirement also influence how your portfolio should be allocated.
Regular rebalancing is key to keeping your investments on track and maximizing your 401(k) contributions to help you reach your goals and stay aligned with your risk tolerance.
Make sure to adjust your retirement timeline as needed. If need be, pushing back your retirement date allows you to put more of your employment income aside for retirement. Also, delaying retirement increases the amount you receive in Social Security benefits.
How to boost your 401(k) balance
Don't panic if your 401(k) savings balance is below the benchmark. Follow these steps to boost your savings and get back on track.
1. Start contributing to your 401(k) early
Most 20-year-olds are just starting to contribute a small amount toward a 401(k) or equivalent retirement plan.
Between lower salaries, rent payments, student loans, and other living expenses, younger individuals typically can't contribute much toward retirement. But that's OK, as folks in their 20s have time.
With compounding interest, the earlier money is put into an account, the more opportunity it has to grow and the greater the possible returns. In retirement accounts like 401(k)s, building even a small amount of retirement savings early means a greater chance for growth.
2. Save more as you make more
Ideally, you'll be able to contribute more as your salary increases and your financial situation improves. Salary increases generally coincide with age. So, workers in their 40s can often contribute a much larger portion of their income compared to peers in their 20s and 30s.
Contributions should increase annually. However, be careful not to over-contribute your 401(k) plan. Instead, consider setting aside cash in an emergency fund or creating additional savings buckets for long-term financial goals like having kids or buying a home.
3. Take advantage of employer-match contributions
Some employers offer a dollar-for-dollar or partial match, up to a certain limit, when an employee contributes toward their workplace retirement plan.
If your employer offers a match, consider making your 401(k) contributions enough to unlock your employer's full match and hit your retirement saving benchmarks. You can contribute more than that, but you won't receive additional employer matches on those funds.
4. Reallocate your portfolio
Your retirement portfolio's investments must be rebalanced regularly as market conditions shift and you have less time to recover from significant losses. During retirement, or when near it, your portfolio should be adequately adjusted for stability and provide a steady source of reliable income.
For example, when entering your 40s and 50s, gradually shift your holding to a more conservative risk tolerance so that a larger percentage of your money is invested in low-risk bonds and other fixed-income securities.
That said, many 401(k) plans can be invested in target date funds based on your expected retirement year, which rebalance themselves to be less risky over time.
5. Older workers can make higher catch-up contributions
Catch-up contributions can significantly boost your retirement savings, especially if you had a late start. As you near retirement age, take advantage of catch-up contributions to finalize your retirement goals and continue storing as much as possible in a retirement account.
Employees age 50 and up can contribute an additional $7,500 in catch-up contributions to their retirement plan.
In 2025, employees can contribute up to $23,500 to their 401(k), up from $23,000 in 2024. However, with a catch-up contribution, older employees can contribute up to $31,000 annually.
6. Avoid early 401(k) withdrawals that hinder-long-term growth potential
Withdrawing early from your 401(k) can have significant implications for your retirement savings down the line. You will incur a 10% penalty fee, and the withdrawn funds will miss out on potential growth opportunities.
Even if you were to pay yourself back, like you would with a 401(k) loan, you couldn't compensate for the lost time that money wasn't accruing interest or being invested.
To avoid a premature withdrawal, contribute only money you won't need to access until you're at least 59½. Additional funds can be deposited into your emergency savings or more flexible investment baskets.
You may also consider strategies to invest after retirement to draw out your savings further.
Beyond averages: Setting your own retirement goals
Calculate your retirement needs
While the average investment portfolio balance by age is a good benchmark to help you see if you've saved enough to retire, how much you actually need to save varies based on your desired lifestyle and projected expenses in retirement.
You can use Business Insider's retirement calculator to see how much of your annual income you should contribute each year toward your 401(k) or other retirement plans. This calculator also considers your estimated life span, preferred retirement age, and interest rates.
Work with a financial advisor
Working with a financial advisor specializing in retirement planning is the best way to realize your retirement goals. Like a financial planner, a fiduciary advisor provides unbiased advice and guidance on meeting your goals using a holistic approach that considers your entire financial picture.
Average 401(k) balances by age FAQs
How much does the average person retire with in a 401(k)?
The average person, age 65 and up, retires with $272,588 in a 401(k). According to Vanguard, the median 401(k) balance for retirees is $88,488.
Is my 401(k) balance enough for retirement?
Your 401(k) balance may be enough for retirement if you've saved around 10 times your current salary. Financial advisors recommend saving 15% of your annual income toward your retirement fund. However, be sure to balance this with your other financial goals, and don't invest money you need in the short term.
How much should I be contributing to my 401(k)?
You should be contributing at least enough to your 401(k) to get any employer match that's available. If you're offered one, you should aim to take advantage of the full employer match, as it is essentially free money.
What happens to my 401(k) if I change jobs?
You can roll over your 401(k) into a new 401(k) plan or IRA account if you change jobs. With a 401(k) rollover, you can avoid early withdrawal penalties, additional taxation, and high management fees.
