Is your 401(k) balance keeping up with the Joneses? Be honest. You — like many U.S. workers with a retirement savings account — are curious about how your nest egg stacks up against the average 401(k) balance by age.
Saving for retirement can be a source of angst for Americans in a world where traditional pensions are fading into obscurity, inflation is eating into monthly budgets, Social Security is in poor financial shape, and financial market volatility is spiking.
It’s no surprise that when fresh data highlighting average 401(k) balances are reported, savers check to see where they stand vs their peers.
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Benchmarking your 401(k) wealth vs savers in your same age bracket might not offer as many clues as to your odds of attaining a secure retirement as you might think.
Average savings totals don’t consider important variables such as salary, investment return projections, how many years you have before retirement, longevity estimates and how much money you’ll need in retirement.
Balance averages can also be skewed by super savers with high balances or young workers starting out with extremely low balances.
Still, average account balances provide a way to benchmark against others your age.
“These average balances can give people an idea of where they might be, given their age,” said Kelly LaVigne, vice president and head of annuity and advanced markets at Allianz Life Insurance Company of North America.
The weakness of doing an average balance analysis is that it doesn’t really explain retirement readiness.
“This information tells us what the average American has saved,” said LaVigne. “But personal finances are, well, personal. Your financial picture may look much different than the average American.”
Average 401(k) balance by age
Average 401(k) balances declined 3% in the first three months of 2025 after hitting a record high in last year’s third quarter, according to Fidelity Investments’ Q1 (first quarter) 2025 Retirement Analysis.
Here’s the average 401(k) balance by generation and age as of March 31, 2025, according to Fidelity's report, which is based on the 25.3 million 401(k) accounts it manages. (Note: the average 401(k) balance was $127,100 at the end of the first quarter, down 1% from a year ago.)
Generation | Age Range | Avg. 401(k) Balance Q1 2025 | Avg. 401(k) Balance Q4 2024 |
|---|---|---|---|
Gen Z | Born 1997-2012 / Age 12-27 | $13,900 | $13,500 |
Millennials | Born 1981-1996 / Age 28-43 | $66,800 | $67,300 |
Gen X | Born 1965-1980 / Age 44-59 | $187,400 | $192,300 |
Boomers | Born 1946-1964 / Age 60-78 | $239,600 | $249,300 |
Table Data Source: Fidelity Investments.
Despite small declines in balances, this latest report has good news.
The total savings rate for Fidelity 401(k) participants hit a record high of 14.3%. That's the closest it has ever been to Fidelity's recommended savings rate of 15% (which includes both employer and worker contributions).
Still, balances decreased for all age groups except Gen Z from the fourth quarter of 2024 (ending December 31) through the first quarter (ending March 31). The decline in account balances was partly due to market swings caused by uncertainty surrounding the Trump administration’s economic policies and concerns about the impact of tariffs on U.S. consumers.
What jumps out in the latest savings data is how low these 401(k) balances are vs what most savers think they will need to retire comfortably.
"Americans' 'magic number' to retire comfortably remains high, far beyond what many people have actually saved," said John Roberts, executive vice president and chief field officer at Northwestern Mutual.
U.S. adults estimate that the magic number for retirement savings is $1.26 million (down from $1.46 million last year), as an April 2025 study by Northwestern Mutual reported.
Working Americans who currently participate in a workplace retirement plan think they’ll need a nest egg of $1.2 million, according to Schroder’s 2024 U.S. Retirement Survey (PDF).
“What the (average 401(k) balances by age) tells us is investors are not saving enough to afford a comfortable retirement,” said Anthony Ogorek, president and founder of Ogorek Wealth Management.
Let’s also look at average 401(k) balances by age band, which shows how much account holders have saved during each decade of their life.
Compare that with Fidelity's recommended retirement savings amount by age, as measured in the multiples of salary a worker should save by a given decade in life.
Here’s the average 401(k) balance by age as of March 31, 2025, according to Fidelity.
Age | Avg. 401(k) Balance Q1 2025 | Avg. 401(k) Balance Q4 2024 | You should have saved at least |
|---|---|---|---|
20s | $18,400 | $18.600 | Row 0 - Cell 3 |
30s | $58,100 | $59,500 | Salary x 1 |
40s | $125,200 | $129,400 | Salary x 3 |
50s | $213,900 | $221,500 | Salary x 6 |
60s | $238,100 | $248,200 | Salary x 8 (and 10x by age 67) |
70s | $241,700 | $250,000 | Row 5 - Cell 3 |
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, senior vice president and national director of wealth planning at Comerica Bank. “Use it as a catalyst to make needed changes to boost your savings.”
Consider using general rules or savings guideposts to better help you determine how much you need to save, gauge if you’re on track and whether you need to tweak your savings strategy. Hopefully, eyeballing these guideposts will serve as a wake-up call to prompt action.
Fidelity, for example, recommends using savings milestones that home in on two savings data points that are more specific to you: your age and your salary, says Michael Shamrell, vice president of workplace 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 40 now and earn $50,000, you should have $150,000 socked away. If your salary rises to $100,000 as you near retirement, you’ll need $1 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. Are you on the right road? Do I need to make a turn? It helps savers know if they’re on track or if they need to make any changes."
Act, don't panic if you're behind
The good news? 401(k) savings balances are far less crisis-like for long-term savers, Fidelity data show. What might look like a low balance today can grow in value over time with 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 around $539,800 and about $406,500 for those saving for 10 straight years, Fidelity data show.
It’s vital that retirement savers build a diversified portfolio so they don’t suffer large losses from, say, a 100% stock portfolio, when markets turn volatile.
As the nearly 20% early April decline in the stock market caused by tariff uncertainty demonstrates, having a retirement portfolio with a diversified mix of stocks, bonds, and liquid assets such as cash can reduce risk and keep losses manageable, says Northwestern Mutual’s Roberts.
“People who have an offense-only investments approach are left vulnerable when the unexpected occurs," said Roberts.
Here are ways to play catch-up if you’re currently 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.
Don’t miss your employer's match. More than 85% of Fidelity 401(k) plan participants received a company match in the first quarter of 2025. 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.
Take advantage of catch-up provisions. For 2025, 401(k) contribution limits for workers under age 50 have increased by $500 to $23,500. The catch-up contribution limit for workers age 50 and older remains unchanged at $7,500 for a total 2025 401(k) contribution limit of $31,000.
Starting in 2025, thanks to the Secure Act 2.0, savers ages 60-63 can boost their catch-up contribution 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 determines your mix of stocks and bonds based on your age and retirement is a way to get proper exposure to stocks.
In this year’s first quarter, two-thirds of Fidelity 401(k) participants had money invested in a target date fund or a managed account, according to Fidelity.
“It’s never too late to save for retirement,” said LaVigne.
The key, though, is to set realistic savings goals, says Brad Bartick, a wealth planner at investment firm Baird.
“Setting an unachievable goal may douse the (savings) fire before it has a chance to build because discouragement invites the risk of halting savings,” said Bartick.
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
Average 401(k) Match: Do You Work for a Generous Company?
The Average IRA Balance by Age
Average Social Security Check by Age
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