National 401(k) Day: Do You Know How You Measure Up?
National 401(k) Day is a great opportunity to review your portfolio. Because "If you don’t know where you are going, you’ll end up someplace else."


Keeping track of your 401(k) balance isn’t just about eyeballing the lump sum you’ve socked away in your retirement savings account. What you’ve saved is a key measuring stick to help you figure out whether you’re on track to reach your savings goal and cover your spending needs once you stop working.
And what better time to review the current health of your 401(k) and take charge of your financial future than National 401(k) Day, set aside on the calendar to focus on retirement planning and preparation.
Lisa Featherngill, national director of wealth planning at Comerica Wealth Management, spells out the importance of keeping regular tabs on your 401(k) by sharing a quote from Yogi Berra: "If you don’t know where you are going, you’ll end up someplace else."
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What you can learn from your 401(k) account balance
It’s important to review your 401(k) balance regularly, as it likely represents a significant portion of your retirement savings. “Staying on top of your balance, plan contributions, and performance is essential to staying on track with retirement planning,” says Featherngill.
Knowing your balance today, however, doesn’t tell you much on its own about retirement readiness.
“First, you need to know your retirement number — or how much you need in retirement,” says Featherngill. Everybody’s magic number is different, of course. However, for most Americans, the number tends to be sizable, averaging about $1.26 million. (You can also see how much you need to have saved in your 401(k) by your age, in the table below.)
Once you come up with a retirement savings target, check to see if your current balance and future return projections stack up against your goals, says Eli Taylor, private wealth advisor at U.S. Bank Private Wealth Management. “Think of this as a financial wellness checkup,” says Taylor.
Taylor recommends using one of the free online retirement calculators, which project future account balances based on annual investment return estimates and years until retirement, to get an idea of whether your savings are on pace or if you need to make adjustments. If you’re on track, great. Keep up the good work. However, if you’re falling behind, there are adjustments you can make to your 401(k) savings, even small ones, that can make a substantial difference to your bottom line over time.
“Consider upping your contributions or looking into investment options that might offer higher growth potential,” says Taylor. “It’s also important to make sure you are contributing enough to get the full employer match if your company offers one. If you are not yet able to max out your contributions, consider small, gradual increases. Most plans have the option to automate these increases. Even a 1% increase every year can make a meaningful difference over time.”
Here's what else to include in your 401(k) tune-up.
Are you keeping up with your peers?
Let’s examine average 401(k) balances by age band, which illustrates how much account holders have saved during each decade of their lives.
Compare that with Fidelity's recommended retirement savings amount by age, as measured in multiples of a worker's salary that they should save by a given decade in life.
Here’s the average 401(k) balance by age as of July 31, 2025, according to Fidelity.
Age | Avg. 401(k) Balance Q2 2025 | You should have saved at least |
---|---|---|
20s | $20,100 | Row 0 - Cell 2 |
30s | $63,800 | Salary x 1 |
40s | $136,600 | Salary x 3 |
50s | $231,900 | Salary x 6 |
60s | $255,200 | Salary x 8 (and 10x by age 67) |
70s | $259,000 | Row 5 - Cell 2 |
How much can you save?
The more you contribute to your 401(k) each paycheck, the better. But maxing out might not be possible for many savers. And you want to make sure your retirement savings plan contributions don’t cause a cash flow crunch.
“I suggest maximizing your 401(k) to a point where it still allows for bills to be paid each month and some savings outside of your retirement plan,” says Steven Conners, founder and president of Conners Wealth Management. “You shouldn’t ever be 401(k) poor. You (can) overinvest by not leaving a comfortable cushion for emergencies and discretionary spending.”
That said, check to see you are at least saving enough in your 401(k) to take advantage of your employer’s matching contribution, says Doug Roller, owner and investment advisor representative at Crossroads Financial Group. “It is essentially free money added to your retirement savings account,” he said. You should aim to save 15% of your salary (including your company match), personal finance experts say. “If you’re behind on savings, consider increasing contributions beyond this level,” says Roller.
Once you hit age 50, you are eligible to make “catch-up” 401(k) contributions. “This can be a great way to make up for lost time, especially if you got a late start on your retirement savings,” says Taylor. For 2025, you can contribute an additional $7,500 ($31,000 total).
New this year are super catch-up contributions for taxpayers aged 60 to 63. If you’re in this age group, you can now contribute up to $11,250 to your 401(k), 403(b), or governmental 457 plan, far above the standard catch-up amount. Although they can turbo-charge your savings, super catch-ups aren't for everyone.
Analyze the performance of your fund holdings
Hitting your retirement number in the future requires that your money is working hard for you. That means the mutual funds you invest in must deliver solid performance. Ideally, you’ll want to own funds that keep pace with a market benchmark like the S&P 500 or funds that invest in similar types of investments. So, take the time to make sure your funds are not lagging the market or the competition.
“Most investment companies post the returns of the funds in retirement plans as well as appropriate benchmarks on their website,” said Featherngill. Try not to focus on short-term performance, as it offers too limited a snapshot of a fund’s performance. Instead, “try to focus on longer-term performance — at least three years — in determining whether the fund is keeping up,” says Featherngill. “If it’s not, see what other options are available.”
Also, review your 401(k) to see if there have been any changes in the fund lineup offerings, advises Tim Steffen, director of advanced planning at Baird. If a fund you owned has been replaced with a different fund, “review your options to make sure you’re comfortable with how your account is invested,” he said.
Finally, don't let 401(k) fund fees eat into your account's performance, especially if you work for a smaller company where fees may be larger.
Give your portfolio a quick tune-up
Check to see how much of your portfolio is invested in stocks and bonds. Stocks offer the most growth potential, while the typical role of bonds is to generate income and provide diversification. You want a mix that matches your risk tolerance and time horizon until retirement.
“Asset allocation, or asset mix, has a significant impact on your rate of return,” says Featherngill. So, ensure your portfolio has adequate growth potential to help you reach your goals. It’s prudent to do a quarterly, semi-annual, or annual review of your asset mix to ensure that it hasn’t strayed too far from your financial plan’s predetermined weightings. If there is a significant shift (up or down) in one asset type compared to another, it can be easy for the account to drift from its target allocation and pose more risk than initially intended. So, if your portfolio is out of whack, it’s time to rebalance and get back to your optimal weightings.
“If your strategy is 60% stocks and 40% fixed income, you may start the year with this allocation,” Featherngill explains. “However, if stocks have a great year and bonds are flat, your allocation won’t be 60/40 at the end of the year. Rebalancing forces you to take some gains off the table (in stocks) and invest in (other assets you own, such as bonds), at lower prices.
Review and update your beneficiaries
Life changes like marriage, divorce, or the birth of a child mean it’s time to update your beneficiary designations, says Taylor: “Don’t overlook this step, as it ensures your 401(k) assets go where you want them to.” And don’t forget this key point, adds Taylor: “Your 401(k) beneficiary designations override your will, so if they’re outdated, your assets may not end up where you intend.”
Just do it
With apologies to Nike, we think that 401(k) Day is a great time to "just do it." At the very least, log in to your account.
If you're willing to put in a bit more effort, educate yourself about your investments. “If you are not feeling confident about your investment choices, take advantage of the educational resources your 401(k) provider offers,” says Taylor. “Or consider picking up a book to deepen your understanding.
If managing your investments feels overwhelming, look into options like target-date funds or robo-advisers that can do the heavy lifting for you. They can adjust your asset allocation (for you) based on your expected retirement date, helping you stay on track with minimal effort.”
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Adam Shell is a veteran financial journalist who covers retirement, personal finance, financial markets, and Wall Street. He has written for USA Today, Investor's Business Daily and other publications.
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