How Much Money Americans Have in Their 401(k) Plans at Every Age
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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Just over two-thirds of working-age families are participating in retirement plans, according to the latest data from the Federal Reserve. As for why nearly one-third of Americans are not saving for retirement in a 401(k) or other retirement account, there are a number of explanations that could apply. Inflation could make it harder to set aside funds for saving, and whatever money is left over might be needed for more pressing financial concerns, such as building an emergency fund or paying off high-interest credit card debt.
Among those who are saving in a 401(k), the largest proportion of Americans (28%) have a balance of between $50,001 and $100,000, a new GOBankingRates survey found. The survey polled 1,000 working Americans ages 21 and older who are employed and have been in their current role at least one full year about their 401(k) balances and saving behaviors. Surprisingly, 401(k) balances didn’t vary as much by age as one might expect.
Here’s a closer look at how much Americans have in their 401(k) plans at every age.
Key Findings
- Older adults have shockingly low balances: 36% of adults 65 and older say they have $50,000 or less in their 401(k) plans.
- The majority of Americans (51%) believes that the typical middle-class American has less than $150,000 in retirement savings by age 65.
- More than 1 in 3 Americans expect to have $100,000 or less in their 401(k) plans by retirement age. In reality, this percentage could be higher — 58% of Americans ages 65 and older have $100,000 or less in their 401(k) accounts.
- 38% of Americans believe it is “impossible” to retire with $1 million in their 401(k) plans and less than 2% of Americans currently report having over $1 million in their 401(k) plans.
- Gen Z is the most optimistic about retiring with a $1 million+ 401(k) balance — 22% believe they will have more than $1 million by the time they retire.
How Much Americans Currently Have in Their 401(k) Plans
Among Gen Z and younger millennials (ages 21 to 34), the majority (65%) have between $25,000 and $100,000 saved in 401(k) plans. Additionally, 20% have $25,000 or less, 11% have between $100,001 and $500,000, and 5% do not have a 401(k).
Older millennials (ages 35 to 43) are more likely than Gen Z to not be saving in a 401(k) — 10% don’t have one. Among the ones who do, balances are pretty evenly spread between $0 and $500,000: 19% have less than $25,000, 21% have between $25,001 and $50,000, 28% have between $50,001 and $100,000, and 18% have between $100,001 and $500,000. Roughly 5% have $500,001 or more in a 401(k).
Gen X (ages 45 to 54) have similar 401(k) balances to millennials, despite having more time to build savings: 17% have less than $25,000, 22% have between $25,001 and $50,000, 28% have between $50,001 and $100,000, 21% have between $100,001 and $500,000, and 5% have $500,001 or more.
Older Gen Xers and younger boomers (ages 55 to 64) also have similar balances, which is troubling considering they are on the cusp of retirement: 19% have less than $25,000, 21% have between $25,001 and $50,000, 28% have between $50,001 and $100,000, 17% have between $100,001 and $500,000, and 7% have $500,001 or more. Eight percent don’t have a 401(k) at all.
Americans who are at retirement age (65 and older) are most likely to not have a 401(k) — 19% don’t have one. This could be because they are reliant on other retirement accounts, such as pensions. Only 8% have $500,001 or more in their 401(k) plans, with the majority (58%) having $100,000 or less — 36% have $50,000 or less.
How Much Americans Expect To Have in Their 401(k) Plans by Retirement Age
The largest proportion of Gen Z and younger millennials (ages 21 to 34) (21%) believes they will have between $100,001 and $500,000 when they retire, with an additional 20% believing they will have between $500,001 and $1 million. They are also the most hopeful that they will have more than $1 million in their 401(k) plans when they retire, with 22% believing they will reach this threshold.
Among older millennials (ages 35 to 43), 20% believe they will retire with less than $50,000 in their 401(k) plans, 51% believe they will have $50,001 to $1 million, and 20% believe they will have over $1 million.
Of the ranges given, Gen X (ages 45 to 54) mostly believes they will have $100,001 to $500,000 in their 401(k) plans by the time they retire, with 22% predicting they will have an amount in this range. Almost 15% believe they will have more than $1 million.
Older Gen Xers and younger boomers (ages 55 to 64) should have a pretty clear idea about what their 401(k) balances will be by the time they retire. The most popular balance predictions among this age group were $100,001 to $500,000 (29%) and less than $50,000 (22%). Only 9% believe they will retire with over $1 million in their 401(k) plans.
Do Americans Believe They Can Retire With $1 Million in Their 401(k) Plans?
Gen Z and younger millennials (ages 21 to 34) are the most likely of all the age groups to be “very confident” they will retire with $1 million in their 401(k) plans, with 14% choosing this response. However, the largest proportion (40%) believes there is a “very small chance” they will retire with this amount.
Older millennials (ages 35 to 43) are not optimistic about retiring with million-dollar 401(k) balances — 35% said there is a “very small chance” and 34% believe it’s “impossible.”
Gen X (ages 45 to 54) is similarly pessimistic — 31% said there is a “very small chance” and 42% believe it’s “impossible.”
Older Gen Xers and younger boomers (ages 55 to 64) are the most pessimistic of all, with 47% believing it’s impossible to have over $1 million in their 401(k) plans by the time they retire. On the flipside, over 1 in 5 Americans in this age group said that there is a possibility they will reach this threshold.
How Much You Should Have in Your 401(k), According to Experts
The amount you should have in your 401(k) will vary greatly by your age and your lifestyle expectations, but there are some rules of thumb to keep in mind.
“The general rule of thumb is this — in your 30s, your retirement savings should be equal to your annual salary; in your 40s, it should be three times your annual salary; six times in your 50s; and eight times in your 60s,” said Steve Sexton, CEO of Sexton Advisory Group. “This is a starting point and by no means a foolproof method, as you’ll need to factor in inflation, health/medical expenses, the number of children and/or dependents you’re financially responsible for, other streams of income in retirement, and more.”
Matthew Cleary, CFP, financial planner at Sentinel Group, said that by the time you retire, you should have at least 10 times your pre-retirement income saved in a 401(k).
“They should also plan to live on 80% of their pre-retirement income,” he said. “This savings plan along with an appropriate investment plan will allow for the best chance to replace 80% of income in retirement.”
If you are nearing retirement, Cleary advises seeking professional help to ensure your 401(k) is in good standing, and help you make adjustments if it’s not.
“Anyone within 10 years of retirement should consult with a financial planner to create a personalized financial plan,” he said. “They can review current savings and spending rates to help make sure you are on track.”
If $1 million is your retirement savings goal, it’s likely more possible than you think. And the 22% of Gen Z who believes they will have more than $1 million by the time they retire probably can get there if they remain disciplined.
“A million-dollar retirement portfolio is achievable,” Cleary said. “The most important factor is saving early and often. A 22-year-old planning to retire at 67 and receiving an annual 8% return would need to save $2,600 to achieve this goal. Someone who waits until 32 to start saving would need to contribute $5,800 to achieve the same goal. Having a disciplined process of saving and investing can really pay off.”
Methodology: GOBankingRates surveyed 1,000 working Americans ages 21+ who are employed and have been in their current role at least one full year from across the country between Nov. 16 and Nov. 22, 2024, asking 14 different questions: (1) How much money do you currently have in your 401(k)?; (2) How much retirement savings do you believe the typical middle class American has by 65 years old?; (3) How much savings do you believe Americans will need in order to retire rich in 2025?; (4) How much do you expect to have in your 401(k) by the time you retire?; (5) What is the likelihood that you believe you can retire with more than $1,000,000 in retirement savings?; (6) How much did you contribute to your 401(k) in 2024?; (7) How much do you plan to contribute to your 401(k) in 2025?; (8) How much do you believe you need to contribute to your 401(k) in order to retire as a millionaire?; (9) Do you tend to change retirement contributions to your 401(k) during economic downtimes?; (10) Have you decreased your contributions to your 401(k) at any point within the past year?; (11) At what age did you first begin investing in your 401(k)?; (12) Have you ever consulted a financial advisor about your retirement?; (13) How well do you understand the tax implications of your current 401(k) plan?; and (14) How confident are you in your management of your 401(k)? GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
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