Average 401(k) Balance by Age in 2025: How You Compare and How to Grow Faster

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If you’ve ever wondered whether you’re saving enough for retirement, looking at the average 401(k) balance by age is a great place to start. It’s one of the simplest ways to see how your savings stack up — and whether you might need to make adjustments to hit your goals.

Your 401(k) balance depends on a few key things: how long you’ve been saving, your income, your employer’s match and how consistently you contribute. New data from Fidelity Investments shows that the average 401(k) balance was $137,800 at the end of the second quarter of 2025. This figure is a record high, reflecting a strong recovery and an increase of 8% from a year prior.

Let’s break down what the average and median 401(k) balances by age look like — and what you can do to grow yours faster.

Quick Facts: 401(k) Balances by Age in 2025

Sources: Fidelity Investments 2025 Retirement Report, Vanguard 2024 How America Saves, EBRI

Average 401(k) Balance by Age in 2025

Your 401(k) savings journey evolves as you move through different stages of life. The average 401(k) balance by age gives you a snapshot of where most savers stand and how their priorities shift over time — from building momentum in their 20s to protecting wealth in their 60s.

Below is a decade-by-decade look at what the numbers show for 2025 and how to make the most of your retirement strategy at every stage:

Workers in Their 20s: The Foundation Stage

Your 20s are all about building momentum. Most people at this age are just getting started, and that’s okay — what matters most is contributing early and consistently. The average 401(k) balance for savers under 25 is about $6,900, while the median balance sits closer to $1,900, according to Fidelity’s Q1 2025 data.

If your employer offers a 401(k) match, aim to contribute at least enough to get the full match — it’s free money that can accelerate your savings. Even a 10% contribution early in your career can grow into hundreds of thousands over time thanks to compounding returns.

Workers in Their 30s: Building Momentum

By your 30s, your income and savings potential start to rise. The average 401(k) balance jumps to around $43,000, while the median sits near $16,600.

This is the decade to automate contributions and start raising your savings rate toward 15% of your income (including any employer match). A recent Vanguard analysis found that workers who steadily increased their contributions by 1% each year had 25% higher 401(k) balances by their early 40s than those who didn’t.

To stay on track, diversify your portfolio with a healthy mix of index funds and equities for long-term growth.

Workers in Their 40s: Peak Earning Years

Your 40s are often your prime earning years — and a crucial time to grow your retirement nest egg. The average 401(k) balance hits roughly $104,000, but the median remains around $40,000, according to Fidelity.

If you’re behind, don’t panic — you still have decades of earning and investing ahead. Focus on raising your contribution rate, rebalancing your portfolio each year, and keeping expenses low.

Fidelity’s Retirement Index reports that workers who save at least 15% of their income during their 40s are 80% more likely to retire on time compared to those who contribute less than 10%.

Workers in Their 50s: Catch-Up and Retirement Prep

By now, retirement is within view — and the IRS gives you tools to accelerate your savings. For 2025, you can contribute $23,500 to your 401(k), plus an additional $7,500 in catch-up contributions if you’re 50 or older. That’s $31,000 total you can stash away tax-deferred each year.

If you’re between 60 and 63, the SECURE 2.0 Act allows even higher catch-up contributions — an extra $11,250 on top of your regular limit.

At this stage, consider gradually shifting your asset mix toward lower-risk investments while still keeping some growth exposure to combat inflation.

Workers 60 and Older: Nearing Retirement

Once you reach your 60s, your focus shifts from saving to preserving — and eventually drawing from — your 401(k). The average 401(k) balance at this stage is about $299,000, while the median sits around $95,000.

This is also when you’ll start planning withdrawal strategies. Factor in Social Security, pension income and Required Minimum Distributions (RMDs), which begin at age 73 under current IRS rules.

According to the Employee Benefit Research Institute, only 4 in 10 workers feel confident they’re saving enough for retirement, making it more important than ever to review your strategy and maximize catch-up opportunities.

Why Average vs. Median 401(k) Balances Matter

When you’re comparing your savings to the average 401(k) balance by age, it’s important to understand that averages don’t always tell the full story.

A few high-income earners with million-dollar accounts can skew the numbers upward, making it seem like everyone’s saving more than they really are.

Looking at the median 401(k) balance instead gives a clearer picture of how most Americans are actually doing — and helps you set more realistic goals for your own retirement plan.

Averages Can Be Misleading

The “average” often looks inflated because it includes high earners with large balances. For instance, a few participants with $1 million accounts can push up the overall average.

Median Balances Tell the Real Story

The median 401(k) balance across all savers is about $38,176, according to Vanguard’s 2024 data, which paints a more accurate picture of where most people stand.

How to Use These Numbers

Treat these figures as benchmarks, not hard rules. Everyone’s financial life looks different. What matters is consistent progress, not perfection. Aim to save at least 1x your income by 30, 3x by 40, and 10x by retirement.

How Much Should You Have Saved by Age?

Fidelity’s Retirement Score Report notes that savers who stay within these benchmarks typically replace about 45% of their pre-retirement income from personal savings alone — enough to maintain their lifestyle comfortably.

Strategies to Grow Your 401(k) at Any Age

No matter how old you are, there are smart ways to strengthen your retirement plan and grow your 401(k) faster. Whether you’re in your 20s just starting out or in your 50s preparing for retirement, the right mix of contributions, diversification and planning can make a major difference in your long-term wealth.

Here are four proven strategies to help boost your 401(k) balance at any stage of life:

1. Max Out Contributions and Take the Match

Always contribute enough to capture your employer’s match. Fidelity estimates that one in four employees misses out on the full match, leaving potentially $1,000 or more per year on the table.

2. Use Catch-Up Contributions After 50

If you’re 50 or older, max out your 401(k) contributions — it’s one of the most tax-efficient ways to grow your retirement fund quickly.

3. Adjust Your Asset Allocation

Younger workers can take on more stock exposure for growth. As you approach retirement, rebalance toward bonds and stable-value funds to protect your savings from volatility.

4. Diversify Beyond Your 401(k)

Use IRAs or taxable brokerage accounts for extra flexibility. Investors with a diversified mix of account types are 70% more likely to meet retirement goals than those relying only on their 401(k).

Common 401(k) Mistakes to Avoid

• Not contributing enough to get the employer match
• Withdrawing or borrowing early (which triggers a 10% penalty and taxes)
• Investing too conservatively — or too aggressively
• Forgetting to rebalance your portfolio at least once a year

Avoiding these mistakes could add over $100,000 in long-term growth, based on Fidelity’s compounding projections.

Final Take to GO: Know Where You Stand — Then Take Action

Understanding the average 401(k) balance by age helps you see how your savings compare — but your personal progress matters more than any chart. Focus on saving consistently, maximizing your employer match and taking advantage of catch-up contributions as you approach retirement.

Final Take: Knowing where you stand is the first step toward improving your financial future. Use the GoBankingRates Retirement Calculator to project your savings and find out how small increases today can make a huge difference tomorrow.

Information is accurate as of Oct. 23, 2025.

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