The Average 401(k) Balance by Age in 2026: Savings Rates Hit a Record — Are You Keeping Up?
401(k) balances dipped in the first quarter of 2026, though savings rates hit their highest level on record. How does your 401(k) balance and savings rate rank vs savers your age?
You can't count on the market and your 401(k) balance to go up all the time. But the one thing you can control is how much you save. Building wealth for your golden years is all about good financial habits, including steady savings. Workers with 401(k)s aced that test in the first quarter of 2026 as total savings rates hit record levels despite a dip in the average 401(k) balance, according to Fidelity Investments.
The total savings rate (which includes both employee and employer contributions) reached 14.4% for the first time, approaching Fidelity's suggested savings rate of 15%.
"You can't control or predict market behavior, but you can decide how much you save," said David Schneider, president of Schneider Wealth Strategies. "Your savings rate is probably the single-most important determinant (in building) long-term wealth."
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So, are your 401(k) balance and total savings rate keeping up with the Joneses?
Saving for retirement remains a source of angst for many Americans in a world where traditional pensions are fading into obscurity, inflation is eating into budgets, Social Security is in poor financial shape, and financial market volatility is a fact of life.
Fidelity's Q1 2026 Retirement Analysis is out
"Retirement savers started the year strong with record-high savings rates and contributions, reflecting the long-term approach they're taking," said Sharon Brovelli, president of workplace investing at Fidelity.
Seeing how your nest egg stacks up against the average 401(k) balance for other people your age is a good way to gauge if you're on track for retirement.
Average retirement savings totals don't take into account your specific circumstances, of course. They don't factor in key variables such as salary, investment return projections, how many years you have before retirement, longevity estimates or how much money you’ll need in retirement.
Balance averages can also be skewed by super savers with high balances or young workers with extremely low balances.
"This information tells us what the average American has saved," said Kelly LaVigne, head of annuity advanced markets at Allianz Life Insurance Company of North America. "But personal finances are, well, personal. Your financial picture may look much different."
The bad news? At the end of March 2026, the average account balance for savers in Fidelity 401(k) plans dipped 4% to $141,000, down from a record $146,400 at the end of 2025. Blame market volatility caused by the U.S. war with Iran and the resulting spike in gas prices.
The good news? 401(k) plan participants shook off the S&P 500 stock index's 4.6% slide in the first quarter of 2026 and boosted their personal account savings rate to a record high of 9.6% (excluding employer matching contributions).
Average 401(k) balance by age and generation
Dragged down by market uncertainty caused by the war with Iran, the average 401(k) balance declined by 3.7%, or $5,400, to $141,000, according to Fidelity Investments’ Q1 (first quarter) 2026 Retirement Analysis.
Here's the average 401(k) balance by generation and age as of March 31, 2026, according to Fidelity's report, which is based on the 25.6 million 401(k) accounts it manages.
Generation | Avg. 401(k) Balance Q1 2026 | Avg. 401(k) Balance Q4 2025 | % With 401(k) Loan Q4 2025 |
|---|---|---|---|
Gen Z | $18,000 | $17,900 | 8.1% |
Millennials | $82,600 | $83,700 | 19.6% |
Gen X | $215,600 | $222,100 | 25.5% |
Boomers | $260,300 | $270,800 | 13.7% |
Table Data Source: Fidelity Investments.
Long-term buy-and-hold approach is winning strategy
Fidelity's latest retirement analysis shows the power of staying the course when market volatility strikes. In the period from 2022 to 2025, Fidelity found that savers starting with $100,000 in their 401(k) who stayed invested in stocks, kept contributing to their account, and rebalanced annually would have ended up with $191,463 at the end of the three-year period. In contrast, a saver who got completely out of stocks and stopped contributing to their 401(k) would have had a balance of just $105,586 at the end of 2025. Finally, a saver who bailed from stocks but continued making contributions to their retirement account would have grown their balance to $143,512.
"While it can be tempting to make changes to retirement savings during market volatility, it is positive to see participants stay the course with their contributions," said Brovelli.
The adoption of Roth 401(k)s also continues to rise. Nearly one in five (18.8%) of Fidelity plan participants now contribute to a Roth 401(k). The main perk of Roth 401(k)s, which are funded with after-tax dollars and now offered by virtually all (97%) of Fidelity plans, is that withdrawals in retirement are tax-free.
A key benefit of a Roth 401(k) is that the contribution limits are much higher than a Roth IRA, says Zjamahl Fain, a private wealth advisor at U.S. Bank. For 2026, the primary contribution limit for a Roth 401(k) (not including catch-up contributions) is $24,500, versus just $7,500 for a Roth IRA. Roth 401(k)s also have another perk: plan participants can make contributions no matter how large their income.
"Roth 401(k)s allow much higher contributions and have no income limits, whereas Roth IRAs have lower limits and strictly restrict high earners," said Fain.
Another positive development: Fidelity 401(k) plan participants boosted their savings vs. the same period last year. The average employee contribution was $3,120 in the first quarter of 2026, up from $3,010 a year ago.
Generation | Employee Savings Rate | Employee Match Rate | Total Savings Rate |
|---|---|---|---|
Boomers | 12.20% | 5.10% | 17.30% |
Gen X | 10.50% | 5.20% | 15.70% |
Millennials | 9.00% | 4.80% | 13.80% |
Gen Z | 7.50% | 4.00% | 11.50% |
Overall | 9.60% | 4.80% | 14.40% |
However, in what could be a sign of financial strain, the Fidelity report also shows that Gen X has the highest percentage (25.5%) of outstanding 401(k) loans.
Financial advisors warn that borrowing from a workplace retirement account should be a last resort.
"If your credit is maxed out, your credit score is low, and there is no emergency fund, a 401(k) loan, while not ideal, is often the only accessible source of cash," said Schneider. "And it requires no underwriting, credit checks or income verification."
How much you need to save for retirement, by age
Let's look at average 401(k) balances by age band, which shows how much account holders have saved during each decade of their lives.
Compare that with Fidelity's recommended retirement savings amount by age, measured as the multiples of salary a worker should save in a given decade of life.
Here's the average 401(k) balance by age as of March 31, 2026, according to Fidelity.
Age | You should have saved at least | Avg. 401(k) Balance Q1 2026 | Avg. 401(k) Balance Q4 2025 |
|---|---|---|---|
20s | Row 0 - Cell 1 | $20,600 | $21,200 |
30s | Salary x 1 | $66,900 | $69,000 |
40s | Salary x 3 | $140,500 | $145,700 |
50s | Salary x 6 | $237,800 | $246,700 |
60s | Salary x 8 (and 10x by age 67) | $257,900 | $269,100 |
70s | Row 5 - Cell 1 | $264,500 | $273,100 |
If your 401(k) balance is below the averages listed above, don’t despair.
“Your reaction shouldn't be giving up, or saying, ‘Oh no, I’m so far behind, I'll never make it up,' " said Lisa Featherngill, national director of wealth planning at Comerica Wealth Management. “Use it as a catalyst to make needed changes to boost your savings."
Consider using savings guideposts to better determine how much you need to save, gauge whether you're on track and decide whether you need to tweak your savings strategy.
Fidelity, for example, recommends using savings milestones that home in on two data points specific to you: your age and your salary, says Michael Shamrell, vice president of thought leadership at Fidelity.
Using Fidelity's guidelines, you should aim to save one times your salary by age 30, three times your pay by age 40, six times by 50, eight times by 60, and 10 times by age 67.
If you're 50 now and earn $100,000, you should have $600,000 socked away. If your salary rises to $125,000 as you near retirement, you'll need $1.25 million saved by the time you're 67, which is when most Americans reach full retirement age and are eligible to receive full Social Security benefits.
"It helps you know where you are on your savings journey, sort of like a map if you're driving from San Francisco to Dallas," said Shamrell. "You want to know if you're headed in the right direction. It helps savers know if they’re on track or if they need to make any changes."
"Fidelity recommends saving 15% of your salary, including your company's matching contribution."
Act, don't panic if you're behind
The good news? 401(k) savings balances are far larger for long-term savers, Fidelity data show. What might appear to be a low balance today can grow over time through steady saving, portfolio gains, and compounding.
For example, the average balance for savers who've been investing in the same 401(k) continuously for 15 years was $600,700 and $450,800 for those saving for 10 straight years, Fidelity's first-quarter 2026 data show.
It's vital that retirement savers build a diversified portfolio of stocks, bonds, cash and other assets so they don't suffer large losses from, say, a 100% stock portfolio or from owning too large a stake in a single company when markets turn volatile.
It's also important for investors to keep their emotions in check and not bail out of the market due to fear when volatility strikes. The good news is that only 5.7% of Fidelity 401(k) plan participants changed their asset mix in the first quarter of 2026, despite ongoing market volatility, according to Fidelity.
Shamrell says staying invested through all market conditions is the key to success.
"We encourage people to remember that saving for retirement is a marathon, not a sprint," said Shamrell.
Having a retirement portfolio with a diversified mix of stocks, bonds, and liquid assets like cash can reduce risk, keep losses manageable, and help investors stay invested during a market downturn.
Here are ways to play catch-up if you're behind on your savings.
Save more. Fidelity recommends saving 15% of your salary, including your company's matching contribution. To reach that goal, boost your 401(k) savings when you get a raise or bonus, or commit to saving 1% more each year until you reach your savings target. Signing up for automatic savings increases is a smart move. In fact, one in four (28.3%) Fidelity 401(k) plans in the first quarter of 2026 now come with employer-set auto-escalation features, up from 19.8% in the first quarter of 2021, according to the Fidelity study.
Don’t miss your employer's match. Eight in 10 (85.4%) of Fidelity 401(k) plan participants received a company match in the first quarter of 2026. The key is to contribute enough to earn the full match, so you don't leave money on the table.
"This can help accelerate your retirement savings," said Sarah Darr, head of financial planning at U.S. Bank Wealth Management.
A popular match is based on a 5% employee contribution rate. Typically, the employer contribution rate matches 100% of the first 3% of employee contributions, and 50% of the next 2%. If you make $100,000 and contribute 5%, or $5,000, to your 401(k), your employer will chip in another $4,000 with the match.
Take advantage of catch-up provisions. For 2026, the 401(k) contribution limit for workers under age 50 is $24,500 (up from $23,500 in 2025). The catch-up contribution limit for workers age 50 and older is $8,000 in 2026 (up from $7,500 in 2025). So, the 2026 401(k) contribution limit for those over 50 is $32,500.
If you are aged 60 to 63, however, you can save even more. Starting in 2025 and continuing in 2026, under the SECURE 2.0 Act, savers ages 60-63 can boost their catch-up contributions to $11,250, according to the IRS. This super catch-up provision should help workers near retirement make up for leaner years when they might not have contributed enough.
Invest more aggressively. Assets with growth potential, such as stocks, will give you a better chance of building a larger nest egg. A target-date fund that adjusts your mix of stocks and bonds based on your age and retirement date is one way to achieve an appropriate level of stock exposure.
In the first quarter of 2026, two-thirds (65.9%) of Fidelity 401(k) participants had all their money invested in a target-date fund, according to Fidelity.
Digging into 401(k) balances by generation
Want more details on your generation's 401(k) balances? Read:
The Average Boomer 401(k) Balance Is Not an 'Easy Rider' Trip
The Average Gen X 401(k) Balance Kind of Bites
The Average Millennial 401(k) Balance Is Not 'Superbad'
Get the full story: What you're worth
Want to see how more of your retirement portfolio compares with peers? Read:
Average Retirement Savings by Age
The Average IRA Balance by Age
Average Social Security Check by Age
Average 401(k) Fund Fees and Expenses: Are You Overpaying?
Next Steps for Building Retirement Security
