The average 401 k balance by age is one of the clearest benchmarks to measure retirement readiness in America. As of 2025, retirement savings are growing, but the distribution is far from even. Some workers in their 50s or 60s are sitting on balances in the hundreds of thousands, while many others—especially younger or lower-income earners—have accounts barely started.
Understanding these averages and medians is crucial for setting personal goals. They show not only how much your peers are saving but also highlight the gaps many Americans must close before retirement.
Why Look at 401(k) Balances by Age?
Retirement savings don’t build evenly over time. The earlier you start, the more compounding interest works in your favor. By comparing balances by decade, you can:
- See if you’re on track compared to national benchmarks.
- Identify whether you’re ahead or behind peers in your age group.
- Adjust your contribution strategy while you still have time.
The story of the average 401 k balance by age is really the story of compounding, consistency, and access to retirement plans.
Average and Median 401(k) Balances in 2025
Here’s a snapshot of the most recent figures across age groups. Both average and median balances are included because they tell different stories.
| 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 how the median is consistently much lower than the average. That means a small number of very high account balances pull the averages upward, while many typical workers hold much less.
Breaking Down 401(k) Balances by Life Stage
Under 25: Just Starting Out
- Average balance: Around $7,000
- Median balance: Around $2,000
At this age, most workers are only beginning their careers. Some may not yet have access to a 401(k) plan, and others contribute only enough to get the employer match. The balances are small, but the key advantage is time. A worker who starts at 22 and consistently contributes, even modestly, will almost always finish ahead of someone who waits until their 30s or 40s to start.
Ages 25–34: Building Momentum
- Average balance: About $42,000
- Median balance: $16,000
In their late 20s and early 30s, workers start gaining financial stability. Many face competing costs like student loans, rent, childcare, or buying a first home. Contributions may be uneven, but those who commit to consistent savings—10–15% of income—build strong momentum for later decades.
Ages 35–44: The Crucial Middle Years
- Average balance: Over $100,000
- Median balance: $40,000
This age group often shows the biggest jump in balances. By now, earnings are higher, and many have more disposable income. Yet financial responsibilities—mortgages, children’s education, healthcare—can eat into savings capacity. For many Americans, this decade is the make-or-break moment for hitting long-term retirement targets.
Ages 45–54: Peak Earnings and Catch-Up
- Average balance: About $189,000
- Median balance: $68,000
At this stage, many workers are at their highest earning potential. The IRS also allows “catch-up contributions” once you turn 50, enabling higher annual savings. Those who started early are often well on their way to retirement readiness. But those who delayed may find themselves far behind the averages and in need of aggressive savings strategies.
Ages 55–64: Retirement in Sight
- Average balance: Around $271,000
- Median balance: $96,000
These are the years when balances peak. Many workers maximize contributions, taking advantage of catch-up allowances. However, the median still shows that nearly half of people this age have less than $100,000 saved—an amount far too low for a 20- to 30-year retirement. Planning withdrawals, Social Security timing, and debt reduction become critical at this stage.
Ages 65 and Older: Transition and Drawdown
- Average balance: $300,000
- Median balance: $95,000
Older workers may continue contributing if still employed, but many begin taking withdrawals. Required minimum distributions (RMDs) begin at age 73 under current law, forcing retirees to draw down their accounts. Some will find their savings adequate when combined with Social Security, while others face difficult decisions.
Salary Multiples: Are You on Track?
Experts often suggest aiming for multiples of your annual salary. Here’s a guideline:
- Age 30: 1× salary
- Age 40: 3× salary
- Age 50: 6× salary
- Age 60: 8× salary
- Age 67: 10× salary or more
For example, if you earn $80,000, you’d want around $240,000 by age 40 and $800,000 by retirement. Compared with the average 401 k balance by age, these benchmarks show that many Americans are underprepared.
Why Averages Can Be Misleading
Looking at averages alone can create a false sense of security.
- High earners skew the numbers: A small group with million-dollar accounts pulls averages up.
- Medians show reality: The typical saver often has far less than the average.
- Access matters: Millions of workers still lack access to employer-sponsored retirement plans, dragging balances lower.
This is why comparing your balance to the median for your age may give you a clearer sense of where you stand.
Factors Driving 401(k) Growth
Several trends have shaped 401(k) balances in 2025:
- Higher contribution limits: Workers under 50 can contribute up to $23,500 per year, and those over 50 can add $7,500 more in catch-ups.
- Employer matches: Many companies now automatically enroll workers and provide stronger matches.
- Market performance: A strong stock market has lifted balances, especially for those heavily invested in equities.
- Better awareness: Younger workers are increasingly educated about retirement savings, starting earlier than previous generations.
Common Obstacles to Higher Balances
Even with positive trends, many workers face barriers:
- Debt: Student loans, mortgages, and credit cards limit available funds.
- Job changes: Cashing out 401(k)s when switching jobs erodes savings.
- Early withdrawals: Taking hardship distributions or loans from accounts reduces long-term growth.
- High expenses: Rising costs for housing, healthcare, and childcare crowd out retirement contributions.
- Lack of access: Millions of workers, especially in small businesses, still don’t have 401(k) access.
Saver Profiles: Early vs. Late Starters
To see the difference, imagine two savers:
- Saver A: Starts at 22, contributes $300 per month until age 65, earns 7% annually. Final balance: over $750,000.
- Saver B: Waits until age 40, then contributes $600 per month until age 65. Final balance: about $400,000.
Even though Saver B contributed more per month, starting later resulted in a much smaller account. The earlier you start, the more compounding works in your favor.
How to Boost Your 401(k) Balance
If your balance is below the averages, you can still make progress:
- Contribute enough to capture the full employer match.
- Increase contributions gradually, especially after raises.
- Use catch-up contributions once you reach 50.
- Avoid borrowing or withdrawing early.
- Rebalance investments to keep the right mix of stocks and bonds.
- Keep fees low by choosing low-cost funds when possible.
- Automate savings increases so contributions rise without effort.
Even small adjustments can add up over decades.
Why 401(k) Balances Are Only Part of the Picture
The average 401 k balance by age is a useful guide, but it’s not the whole story. Retirement security also depends on:
- Social Security benefits
- Other investment accounts (IRAs, brokerage accounts)
- Real estate equity
- Pensions, for those who still have them
- Lifestyle expectations in retirement
For many, a 401(k) is the largest savings vehicle, but it should be combined with other income sources for a complete plan.
Final Thoughts
The average 401 k balance by age in 2025 shows progress, but also deep divides. While some savers are on track with balances well above national averages, many others remain behind—especially when compared to recommended salary multiples.
The lesson is clear: start early, contribute consistently, and take advantage of employer matches and catch-up contributions. Whether you’re in your 20s or 60s, the best time to improve your savings is now.
How do your balances compare to these averages? Share your perspective below.
Three Short FAQs
Q1: Is the average 401(k) balance enough for retirement?
For most people, no. Even $300,000 won’t last long without Social Security or other assets.
Q2: Why is the median lower than the average?
Because a few very high balances pull averages up, while most savers hold far less.
Q3: What’s the most important step to grow my 401(k)?
Start early and stay consistent. Time in the market is more powerful than the size of each contribution.
Disclaimer
This article is for educational purposes only. It should not be taken as financial advice. Everyone’s financial situation is unique. Speak with a licensed advisor for guidance tailored to your needs.