How Does Your 401(k) Balance Stack Up in 2025 by Age?
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- According to Vanguard's annual report, the average 401(k) balance across all age groups is $134,128.
- Comparing typical 401(k) benchmarks may assist you in refining your retirement planning approach.
- If you fall short of the target, consider enhancing your 401(k) by consulting a financial advisor for assistance.
A 401(k) plan is among the best retirement plans For workers in the U.S. to create enduring wealth. Yet, how do you guarantee that your savings efforts are effective?
Although there isn't a specific target to strive for, you can utilize 401(k) benchmarks to confirm that you're progressing toward your objective and adjust your long-term investment approach accordingly.
Vanguard examines data from millions of retirement accounts each year to identify the typical and median 401(k) plan balances. Grasping metrics such as the mean 401(k) balance upon retiring and the average 401(k) savings across different ages can aid in assessing financial readiness. How much money do you require to achieve retirement? And whether you're on course to achieve those objectives.
Vanguard's " How America Saves The 2024 report indicates that the average 401(k) balance stands at $134,128. Interestingly, the median 401(k) balance also amounts to $134,128. As of now, the 2025 report has not been released.
Here is how much Americans have managed to save in their 401(k)s By each age group and income level, including the typical 401(k) balance at retirement.
Typical 401(k) Balance According to Age
A 401(k) goes beyond being just a savings account; it’s a powerful instrument for building wealth that guarantees a comfy, worry-free retirement. Gaining insight into how factors like age, earnings, and gender affect your retirement funds allows you to make well-thought-out choices tailored to both your personal background and financial aspirations.
The following figures represent the mean and median 401(k) balances segmented by age groups, based on data provided in Vanguard’s “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) identified the average balances for 401(k)s and IRAs across different generations.
| 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% |
Senior citizens possess larger 401(k) and IRA account balances compared to younger individuals. This could be due to older employees earning higher wages, which provides them with increased financial leeway for contributing more towards their retirement funds. Additionally, they might have spent more years working, enabling their savings to accumulate over a longer period.
Furthermore, individuals who are 50 years old and above have the option to add an extra $7,500 annually through catch-up contributions.
Alternative 401(k) benchmarks
Your 401(k) balance can be compared using methods beyond just age to determine if you're set for retirement. Consider these additional 401(k) benchmarks instead.
Mean 401(k) balance across different salary brackets
Below is a comparison of yearly earnings alongside both the mean and median 401(k) balances:
| 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 According to Gender
| Gender identity | Average 401(k) balance | Median 401(k) balance |
| Men | $157,489 | $42,263 |
| Women | $112,401 | $31,164 |
Typically, men tend to save more money for their retirement compared to women. According to Vanguard’s findings across various ages, the median 401(k) account balance for women is approximately $11,099 lower than that of men. The study exclusively examined these two gender categories: men and women.
Even though there is a significant difference in savings levels, women typically require larger retirement funds compared to men to achieve a comfortable retirement. This discrepancy can be attributed to women generally having longer life spans, thus necessitating increased longevity and potential long-term care expenses during their retirement years, potentially leading to higher expenditures for them.
Mean 401(k) Balance Across Industries
This shows how typical balances vary across different sectors.
| 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 |
Individuals employed in sectors such as agriculture, mining, and construction play a substantial role in retirement savings, where the typical worker within these industries has an average account balance exceeding $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
Elements affecting 401(k) account balances encompass age, earnings bracket, company perks, and broader financial circumstances.
Era and decades of savings
Time plays a vital role in financial planning For retiring comfortably, starting to contribute funds at a young age enables your money to fully utilize the power of compound interest. Regular small deposits can accumulate into substantial savings over time due to this effect.
Income level
Greater earnings usually result in higher 401(k) contributions, which can lead to a bigger nest egg for retirement.
Nevertheless, according to Vanguard’s findings, families with a greater yearly income experienced decreased average and median 401(k) balances compared to earlier years. This decline could be attributed to rising costs and an overall increase in the cost of living, which compelled households to decrease their contributions towards retirement savings and even led to withdrawals. 401(k) hardship withdrawals .
It's crucial to understand that taking money out of your retirement savings too early can greatly affect your ability to grow your funds over time.
Investment choices
The way you allocate funds within your 401(k) is equally crucial as making the initial investment. Besides accruing compound interest , you should allocate your investments across stocks, bonds, ETFs, and various retirement funds to counteract inflation and accumulate wealth.
Spreading out your investments is essential for effective risk management. risk and volatility in your portfolio. Investment diversification Participating in a 401(k) might also enhance growth by providing access to various market segments and differing types of investments.
Economic conditions
As the market changes, so too will the makeup of your portfolio. investment portfolio Your age and closeness to retirement likewise affect how you should distribute assets within your portfolio.
Frequent readjustment is essential for maintaining your investment strategy and optimizing your 401(k) contributions so you can achieve your objectives and remain consistent with your acceptable level of risk.
Ensure you modify your retirement schedule as necessary. If required, extending your retirement date enables you to save more of your earned income for retirement purposes. Additionally, postponing retirement boosts the sum you will receive in your pension. Social Security benefits.
Ways to Increase Your 401(k) Balance
If your 401(k) savings balance is lower than expected, stay calm. Here’s how you can increase your savings and regain momentum.
1. Begin adding to your 401(k) as soon as possible
Many individuals at the age of 20 are only beginning to put a modest sum into their 401(k) or similar pension plans.
With lower wages, rental costs, student debt, and various everyday expenditures, young adults generally aren't able to put much towards retirement savings. However, this isn’t an issue since people in their twenties possess ample time ahead of them.
When compound interest is applied, funds placed in an account have more time to increase, potentially leading to higher returns. For instance, starting to save even a modest sum in retirement vehicles such as 401(k)s at an early stage can significantly boost your chances of substantial accumulation over time.
2. Increase your savings as your income grows
Preferably, you will have the ability to contribute more as your earnings rise along with your financial stability. Typically, raises align with advancing years. Thus, employees in their forties tend to be capable of contributing a significantly greater share of their income relative to those in their twenties and thirties.
Contributions ought to rise each year. Nonetheless, ensure you avoid overshooting your contributions to your 401(k). Alternatively, think about stashing some funds into liquid assets. emergency fund Or setting up extra savings categories for long-term objectives such as starting a family or purchasing a house.
3. Leverage employer-matching contributions.
Certain employers provide a matching contribution, either fully or partially on a one-to-one basis, up to a specified maximum, whenever an employee puts money into their company’s retirement savings program.
If your company provides a matching contribution for your 401(k), aim to make contributions sufficient to secure the entire employer match and meet your retirement savings goals. While you have the option to contribute even more beyond this point, doing so will not result in extra employer matches on those additional funds.
4. Reallocate your portfolio
Your retirement portfolio needs periodic adjustments as market circumstances change and you have reduced time to bounce back from major downturns. As you enter retirement or approach it, your portfolio ought to be well-adjusted for stability and serve as a consistent provider of dependable income.
When you reach your 40s and 50s, consider progressively adjusting your portfolio towards a less risky profile, ensuring that a bigger portion of your funds goes into lower-volatility bonds and various fixed-income assets.
As mentioned, numerous 401(k) plans offer investment options in target-date funds tailored to your anticipated retirement year. These funds automatically adjust their risk level over time, becoming more conservative as you approach retirement.
5. Workers with more years of experience can contribute larger catch-up amounts.
Late starts to saving for retirement can be compensated with catch-up contributions which can greatly enhance your nest egg. When nearing retirement, utilize these additional contribution opportunities to achieve your financial objectives and maximize the funds in your retirement accounts.
Staff members who are 50 years old and older have the option to add an extra $7,500 as catch-up contributions to their retirement plans.
In 2025, workers have the option to put aside as much as $23,500 into their 401(k) plans, an increase from the previous limit of $23,000 set in 2024. Furthermore, those who qualify for catch-up contributions may be able to save up to $31,000 per year.
6. Steer clear of withdrawing from your 401(k) too early as this can impede its long-term growth potential.
Taking money out of your 401(k) prematurely could greatly affect your ability to save adequately for retirement. Besides facing a 10% penalty charge, the amount you withdraw won’t benefit from possible increases over time.
Even if you were to reimburse yourself, similar to how you would do so with a loan, 401(k) loan , you were unable to make up for the lost time when the money wasn't earning interest or being invested.
To prevent an early withdrawal, allocate only those funds that you will not require until after you reach age 59½. Any extra amounts should be directed towards your emergency fund or placed in alternative investment options for greater flexibility.
You might want to explore tactics for invest after retirement to extend your withdrawals from your savings even more.
Beyond averages: Setting your own retirement goals
Calculate your retirement needs
Although the typical investment portfolio balance according to age can serve as a useful gauge to determine whether you have amassed sufficient funds for retirement, the actual amount you should save depends on your preferred standard of living and estimated costs during retirement.
You can utilize Business Insider's retirement calculator To determine what portion of your yearly earnings you ought to allocate annually towards your 401(k) or additional retirement savings. The tool also takes into account your projected lifespan, desired retirement age, as well as anticipated interest rates.
Collaborate with a financial advisor
Working with a financial advisor Focusing on retirement planning is the most effective method to achieve your retirement objectives. Similar to a financial planner, a fiduciary advisor offers impartial counsel and direction for fulfilling your aims through an all-encompassing strategy that takes into account your complete financial situation.
Typical 401(k) balances by age FAQ
What is the typical amount of money an individual accumulates in their 401(k) by retirement?
A typical individual aged 65 and older retires with approximately $272,588 in their 401(k). As reported by Vanguard, the middle value of 401(k) balances for those who have retired stands at $88,488.
Is my 401(k) balance sufficient for retirement?
Your 401(k) balance could suffice for retirement if you have accumulated roughly tenfold your present earnings. Experts suggest setting aside 15 percent of your yearly income for your retirement savings. Nonetheless, make certain to weigh this against your additional monetary objectives and avoid allocating funds you might require within the near future.
What amount should I contribute to my 401(k)?
You ought to contribute at least up to the amount needed to secure any matching funds from your employer for your 401(k). Should such an opportunity arise, strive to maximize your benefits by fully utilizing the employer’s matching contribution, since this represents additional earnings at no cost to you.
What occurs to my 401(k) when I switch employers?
If you switch jobs, you have the option to transfer your 401(k) funds into a new employer’s 401(k) plan or an IRA account instead. By doing a 401(k) rollover, you can bypass early withdrawal charges, extra taxes, and steep administration costs.
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