The average 401 k balance by age is one of the most common benchmarks Americans use to measure retirement readiness. Looking at these numbers by decade gives a clear picture of how savings grow over time—and how wide the gap can be between those on track and those falling behind.
In 2025, balances have generally increased thanks to higher contribution limits and strong market performance. But the data also shows sharp differences across generations. Many savers are well ahead of the curve, while others risk entering retirement with little cushion.
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Why Age Matters in Retirement Savings
Retirement savings are not just about how much you set aside—they’re about when you start. Time in the market is the most powerful factor in building wealth through compounding.
- A worker in their 20s who contributes even modestly each month can end up with a larger balance than someone who starts in their 40s and contributes twice as much.
- Consistency, not just contribution size, is what creates wealth across decades.
That’s why looking at the average 401 k balance by age matters. It helps you see whether you’re pacing yourself against peers and whether you’re on track for long-term goals.
Average and Median Balances by Age Group
Below is a snapshot of the most recent averages for 401(k) balances by age. Alongside averages, median balances are included because they often paint a more realistic picture.
| Age Group | Average Balance | Median Balance |
|---|---|---|
| Under 25 | $7,000 | $2,000 |
| 25–34 | $42,000 | $16,000 |
| 35–44 | $104,000 | $40,000 |
| 45–54 | $189,000 | $68,000 |
| 55–64 | $271,000 | $96,000 |
| 65+ | $300,000 | $95,000 |
Notice the gap between averages and medians. In nearly every bracket, the average is two to three times higher than the median, which means a small number of very high balances are pulling the averages upward.
How to Read These Numbers
- Average: Adds all balances together and divides by the number of participants. A few very high savers make the numbers look bigger than what most people have.
- Median: The middle balance when all accounts are lined up. This is often closer to what the “typical” person in that age group has saved.
So if the average 401(k) balance for people in their 50s is nearly $200,000, but the median is only $68,000, it means half of savers in that age range hold less than $68,000.
Contribution Limits in 2025
One reason balances are increasing is that contribution limits are higher than in past years.
- Workers under 50 can contribute up to $23,500 annually.
- Those age 50 and older can make catch-up contributions of up to $7,500, raising their limit to $31,000.
- Workers ages 60–63 may also qualify for an additional temporary “super catch-up,” allowing even more contributions.
Maximizing these limits—especially later in your career—can make a major difference in final retirement balances.
Average 401(k) Balance by Age: A Closer Look
Ages Under 25
At this stage, most people are just starting their careers. Balances are low, averaging under $10,000. But those who begin contributing early gain decades of compounding. Even a 3% contribution at this age can create six-figure growth by retirement.
Ages 25–34
By this stage, workers are more settled in their careers. The average balance climbs above $40,000, though the median remains far lower. Many young professionals struggle with student loans, housing costs, and childcare, making it harder to save. Still, contributing consistently—even if only enough to capture an employer match—pays off later.
Ages 35–44
Savings growth accelerates here, with averages crossing $100,000. Median balances, however, are closer to $40,000. Workers in this age range are often at their peak earning growth, but also face heavy financial pressures such as mortgages and raising children. This is a critical decade for getting serious about contributions.
Ages 45–54
By this point, many savers are entering their highest earning years. Average balances near $190,000, though the median lags around $68,000. This is often the stage where people realize whether they are on track—or whether they need to make drastic adjustments. Catch-up contributions become increasingly important.
Ages 55–64
With retirement on the horizon, the average 401(k) balance passes $270,000. But the median, under $100,000, shows many are unprepared. Those who started early and contributed consistently are often well ahead, while late starters may struggle. Planning withdrawals and minimizing debt become priorities.
Ages 65 and Older
Balances average around $300,000, though the median remains just under $100,000. Some retirees begin drawing down funds, while others keep investing to stretch savings. Whether this is enough depends heavily on lifestyle, health, and whether other assets (like pensions or Social Security) provide additional support.
Benchmarks for Savings by Age
Experts often recommend aiming for multiples of your annual salary as retirement savings milestones. These are broad guidelines, but useful for comparison:
- By age 30: 1× your annual salary
- By age 40: 3× your salary
- By age 50: 6× your salary
- By age 60: 8× your salary
- By age 67: 10× your salary
For example, if you earn $70,000 at age 50, an ideal balance would be around $420,000. Many Americans fall short of these targets, but they serve as motivation to contribute more when possible.
Why Many Fall Behind
Even with higher averages in 2025, large groups of workers remain underprepared for retirement. Some common reasons include:
- Inconsistent contributions: Gaps due to job changes or unemployment reduce compounding.
- Lack of access: Not all workers are offered 401(k) plans, particularly in small businesses.
- Debt burden: Student loans, credit cards, and mortgages often take priority over saving.
- Early withdrawals: Borrowing against 401(k)s or cashing out when leaving jobs hurts growth.
- High expenses: Rising costs for housing, healthcare, and childcare leave little to save.
Strategies to Improve Your Balance
If your 401(k) balance is behind the averages, it’s not too late to catch up. Here are strategies that make a difference:
- Contribute enough to get the full employer match. This is free money.
- Increase your savings rate slowly. Boost contributions 1–2% each year.
- Take advantage of catch-up contributions if you’re 50 or older.
- Avoid loans and early withdrawals that shrink your account.
- Review fees in your plan. High fees can eat away at returns.
- Diversify investments for both growth and safety as you age.
- Stay consistent—regular contributions matter more than one-time large deposits.
The Role of Market Performance
The stock market has a major impact on 401(k) balances. In years of strong growth, balances increase dramatically. In downturns, they can drop quickly. That’s why diversification and staying invested for the long term are crucial.
Trying to time the market rarely works. Those who kept contributing during downturns typically recovered faster and ended with higher balances than those who stopped or withdrew.
Retirement Is More Than a Number
While the average 401 k balance by age provides useful benchmarks, retirement readiness isn’t just about one account. Other factors play big roles:
- Social Security benefits
- IRAs and other investment accounts
- Real estate equity
- Pensions (if available)
- Part-time work or side income in retirement
Your 401(k) is the foundation, but total retirement readiness comes from a mix of income sources.
Three Short FAQs
Q1: Is the average 401(k) balance enough for retirement?
For many, no. Even $300,000 may not provide enough income without Social Security or other savings.
Q2: What’s more important, the average or median balance?
The median is a better reflection of what most people have. Averages are skewed by very high balances.
Q3: How can younger workers improve their balances?
Start early, even with small amounts. Consistency over decades leads to the biggest growth.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Individual circumstances vary. For personalized guidance, consult a licensed financial advisor.