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Friday, July 25, 2025

The average 401(k) balance by age

The average 401(k) balance by age

According to Empower data, the average 401(k) balance is $315,820, but differs significantly by age. See how your savings stack up 

07.14.2025

Key takeaways

  • The average 401(k) balance for those in their 20s is $97,440, while those in their 50s have the highest average 401(k) balance at $607,055
  • Comparing average 401(k) benchmarks can help you see how your savings compare to others your age, but every financial situation is unique
  • Saving early and often can help you maximize the potential for compounding earnings over time

One of the most common investment vehicles that Americans use to save for retirement is a 401(k).

To help you maximize your retirement dollars, the 401(k) is an employer-sponsored plan that allows you to save for retirement in a tax-sheltered way. In 2025, you can contribute up to $23,500, up from $23,000 in 2024.1

If your employer offers a 401(k) and you are not utilizing it, you may be leaving money on the table — especially if your employer matches your contributions.

The 401(k) is one of the top retirement saving options for many people. Empower data shows that the majority of Americans contribute to a retirement plan (70%), though contributions vary by generation: Only 47% of Gen Zers say they save in a retirement plan, such as a 401(k) or 403 (b), compared to 75% of Millennials and 76% of Gen Xers.

How much do people actually have saved in their 401(k) plans? And how does this stack up against what they could have saved if they were maxing out their 401(k) every year?

 

The average 401(k) balance by age 

TAccording to Empower data, the average 401(k) balance across all age groups is $315,820. Take a look at this chart showing the how the average 401(k) balance differs by age.

Age

Average 401(k)

Median 401(k)

 

20s

$97,440

$37,668

 

30s

$193,895

$77,546

 

40s

$392,026

$158,093

 

50s

$607,055

$249,136

 

60s

$568,040

$188,792

 

70s

$420,975

$92,611

 

80s

$413,614

$78,534

 

 

Anonymized data from Empower Personal DashboardTM as of June 30, 2025.

These figures include 401(k) balance data from people who use Empower’s online financial dashboard and may include balances from both current and former employer-sponsored plans. Investors who use online financial tools tend to be particularly engaged in saving for retirement and other financial best practices. A recent Empower study shows 30% of adults say building up a retirement plan savings like 401(k) investments is key to achieving financial success.

Average 401(k) balance for 20s – $97,440; median – $37,688

When you’re in your 20s, if you’ve paid down any high-interest debt, try to save as much as you can into your 401(k) and other retirement accounts. The earlier you start, the better. As you can see from the potential savings chart below, compounding earnings is no joke.

Average 401(k) balance for 30s – $193,895; median $77,546

Your 30s can be a good time to aggressively pay down any non-mortgage debt. If you still have high-interest debt, you may be earning 8% in your retirement account but may be paying 20% or more in credit card interest.

Average 401(k) balance for 40s – $392,026; median $158,093

If you haven’t already started to max out your 401(k) annually by this age, then you may want to start thinking about what changes you can make to get as close as possible to that $23,500 per-year contribution. You don’t want to lose out on years of potential compounding growth.

Average 401(k) balance for 50s – $607,055; median $249,136

When you hit your 50s, you become eligible to make larger contributions toward your retirement accounts. These are called catch-up contributions. Consider taking advantage of them. Catch-up contributions are $7,500 in 2025.2 So, if you contribute the annual limit of $23,500 plus your catch-up contribution of $7,500, that’s a total of $31,000 tax-advantaged dollars you could be saving towards your retirement.

Average 401(k) balance for 60s – $568,040; median – $188,792

By your early 60s, you should have a better idea of what retirement could look like for you and what it really means for you to be “retired.” Do you want to keep working as long as you can? Would you like to slow down? What are your Social Security benefits and when is the optimal age to start taking them? Are you eligible for spousal or survivor benefits?

Average 401(k) balance for 70s – $420,975; median – $92,611

The average age to retire is 65 for men and 63 for women, so it’s not surprising to see the average and median 401(k) balance figures start to decline in people's 70s as people start withdrawing from their accounts. Once you reach age 65, there are still several considerations for your retirement, even if you are no longer working and accumulating wealth. Some of these include making decisions about Medicare, creating a plan around withdrawing money from your retirement accounts, and evaluating any additional insurance needs.

401(k) savings potential by age

The following chart depicts 401(k) savings potential by age, based on several assumptions. This is how much you could have saved to help you replace your income in retirement. The chart below is based on the following assumptions:

  • You start full-time employment at age 22.
  • Your starting salary is $67,000 (around the current U.S. national average wage) and increases by 3% each year.3
  • You contribute 15% of your salary to a 401(k), capped at $23,500 annually.
  • Your employer provides a 50% match on the first 6% of your salary.
  • Total annual contributions (employee + employer) are capped at $70,000.
  • Contributions continue consistently each year through age 65.
  • The “No growth” column reflects cumulative employee contributions only, with no investment returns.
  • The “Employer match” column shows annual employer contributions based on the match formula.
  • The “8% growth” column assumes an 8% annual return, compounded yearly, on both employee and employer contributions.
  • No withdrawals, fees, or catch-up contributions are included in the model.

Age

Annual salary

Annual contribution (15%)

Employer match

No growth

8% growth

22

$67,000.00

$10,050.00

$2,010.00

$10,050.00

$12,060.00

23

$69,010.00

$10,351.50

$2,070.30

$20,401.50

$25,446.60

24

$71,080.30

$10,662.05

$2,132.41

$31,063.54

$40,276.78

25

$73,212.71

$10,981.91

$2,196.38

$42,045.45

$56,677.21

26

$75,409.09

$11,311.36

$2,262.27

$53,356.81

$74,785.03

27

$77,671.36

$11,650.70

$2,330.14

$65,007.52

$94,748.67

28

$80,001.50

$12,000.23

$2,400.05

$77,007.74

$116,728.84

29

$82,401.55

$12,360.23

$2,472.05

$89,367.98

$140,899.42

30

$84,873.60

$12,731.04

$2,546.21

$102,099.02

$167,448.62

31

$87,419.80

$13,112.97

$2,622.59

$115,211.99

$196,580.08

32

$90,042.40

$13,506.36

$2,701.27

$128,718.35

$228,514.12

33

$92,743.67

$13,911.55

$2,782.31

$142,629.90

$263,489.11

34

$95,525.98

$14,328.90

$2,865.78

$156,958.79

$301,762.91

35

$98,391.76

$14,758.76

$2,951.75

$171,717.56

$343,614.46

36

$101,343.51

$15,201.53

$3,040.31

$186,919.08

$389,345.45

37

$104,383.82

$15,657.57

$3,131.51

$202,576.66

$439,282.17

38

$107,515.33

$16,127.30

$3,225.46

$218,703.96

$493,777.51

39

$110,740.79

$16,611.12

$3,322.22

$235,315.08

$553,213.05

40

$114,063.02

$17,109.45

$3,421.89

$252,424.53

$618,001.44

41

$117,484.91

$17,622.74

$3,524.55

$270,047.26

$688,588.83

42

$121,009.45

$18,151.42

$3,630.28

$288,198.68

$765,457.64

43

$124,639.74

$18,695.96

$3,739.19

$306,894.64

$849,129.41

44

$128,378.93

$19,256.84

$3,851.37

$326,151.48

$940,167.96

45

$132,230.30

$19,834.54

$3,966.91

$345,986.03

$1,039,182.86

46

$136,197.21

$20,429.58

$4,085.92

$366,415.61

$1,146,832.98

47

$140,283.12

$21,042.47

$4,208.49

$387,458.07

$1,263,830.58

48

$144,491.61

$21,673.74

$4,334.75

$409,131.82

$1,390,945.52

49

$148,826.36

$22,323.95

$4,464.79

$431,455.77

$1,529,009.91

50

$153,291.15

$22,993.67

$4,598.73

$454,449.44

$1,678,923.11

55

$177,706.46

$23,500.00

$5,331.19

$571,949.44

$2,634,126.61

60

$206,010.49

$23,500.00

$6,180.31

$689,449.44

$4,042,312.25

65

$238,822.62

$23,500.00

$7,164.68

$806,949.44

$6,116,822.37


*FOR ILLUSTRATIVE PURPOSES ONLY. This hypothetical illustration does not reflect a particular investment and is not a guarantee of future results. It assumes an 8% annual rate of return, reinvestment of earnings and no withdrawals. Rates of return may vary. The illustration does not reflect fees, which could change the outcomes provided.

5 steps to take now to help improve your retirement readiness 

While the average 401(k) balance for people in their 50s at pre-retirement age is around $607,055, , it’s also probably not enough to retire comfortably for most people. For expenses alone, the average American household spends $77,280 each year.

Needless to say, many people are falling below their savings potential. But the good news is it’s not too late to turn things around.

1. Save early, often and aggressively.

Saving can be hard when you are young and not making a large salary, and it’s hard when you’re older and big life expenses get in the way. However, the biggest threat to your retirement is inaction. Even if it’s uncomfortable to max out your 401(k), do it if you can. If you get a salary raise, consider putting 50% of it toward savings if you’re able. The earlier you can save, the better off you may be, and you may even surprise yourself with how much you are able to put away. Compounding can do wonders when there is a positive annual return — as you can see from the high end of the potential savings chart — so the earlier you can save more, the farther your money may go.

2. Don’t rely only on Social Security.

With nearly half of Americans (45%) saying they retired or plan to retire between the ages of 60 and 69 it’s crucial to save in other investment vehicles, such as a 401(k), in order to maintain your desired lifestyle in retirement.

According to the United States Social Security Administration, Social Security is on track to be depleted by 2034, at which point a portion of the benefits will be paid from ongoing tax revenue.4  Nearly three in four Americans rely or expect to rely on Social Security benefits for retirement income, according to Empower research.

3. Have a realistic understanding of when you want to retire.

Having clearly defined personal goals will help you determine how much you should have saved. Your savings objectives will be different if you plan to retire at 50 than if you plan to continue working past 70.

Additionally, it’s important to determine as accurately as you can what your cost of living will be in retirement. How much do you need to spend per year to maintain the lifestyle that you want for the rest of your life? Have a good sense of what your costs will be so you can factor that into your overall retirement strategy. Really evaluate how long you want to continue working, and what retirement age is realistic for you based on your income and your current level of savings.

4. Develop other sources of income.

Think about other ways you can secure sources of income in retirement outside of collecting Social Security and withdrawing from your 401(k). This will not only prevent you from having all your retirement eggs in one basket, but it is also something to consider if your 401(k) balance is lower than you’d like. Where can you invest, and how can you optimize your portfolio for potentially greater returns? Consider other ways you can supplement your retirement income and consider speaking to a financial advisor about what solutions could work for you.

5. Leverage all the resources at your disposal.

There are many tools available to help you understand your financial life in more detail. Not leveraging them can result in a huge blind spot when it comes to your finances. Simply having this information will help you understand if you are on the right track, and how to help accelerate your progress on your retirement goals. If working with a financial professional is an option for you, this can be an invaluable resource, especially as you get closer to retirement.

A financial professional who has your best interest in mind can help you strategize and address potential gaps in your savings and retirement income plans.

The bottom line

Having a good understanding of where you are spending and saving, and having a holistic sense of your lifestyle costs, is crucial to your overall retirement planning objectives. The point of this savings potential chart is not to discourage you if you do not fall somewhere in the defined 401(k) balance range; it is more to show you what is possible.

Yes, consider maxing out your 401(k) if that's right for you. Beyond that, try to save in other ways as well. Even if you don’t think that’s possible for you, striving towards these goals and contributing as much as possible may get you closer to your targets than if you were to contribute very little or nothing at all.

1 IRS, "401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000,” July 2025.

2 IRS, “Retirement topics - Catch-up contributions,” May 2025.

3 Social Security Administration, “National Average Wage Index,” July 2025.

4 CBS News, “Social Security's insolvency date is now a year earlier. Here's how it could impact your benefits,” June 2025. 

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Paul Deer, CFP®

Contributor

Paul Deer is the Vice President of Wealth Private Client at Empower. A CERTIFIED FINANCIAL PLANNER™ professional, he has over a decade of industry experience, and leads a team of financial advisors serving Empower clients.

The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. No part of this blog, nor the links contained therein is a solicitation or offer to sell securities. Compensation for freelance contributions not to exceed $1,250. Third-party data is obtained from sources believed to be reliable; however, Empower cannot guarantee the accuracy, timeliness, completeness or fitness of this data for any particular purpose. Third-party links are provided solely as a convenience and do not imply an affiliation, endorsement or approval by Empower of the contents on such third-party websites. 

Certain sections of this blog may contain forward-looking statements that are based on our reasonable expectations, estimates, projections and assumptions. Past performance is not a guarantee of future return, nor is it indicative of future performance. Investing involves risk. The value of your investment will fluctuate and you may lose money.  

Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.