Here’s How Much the Average American Has in Their 401(K) by Their 30s, 40s and Beyond

Many people saving for retirement tuck their funds away into a 401(k). Access to this tax-advantaged account is a common benefit offered by employers, and in 2024 the IRS allowed the average person to contribute a maximum of $23,000 a year to their 401(k).

Typically, the average account balance increases with age, and those nearing the end of their career will often have larger balances saved up. 

Unsurprisingly, that means that Gen Xers and Millennials are more likely to have taken advantage of these types of savings accounts than Gen Zers, especially when it comes to using any contribution matching programs offered by their employers.

That being said, whether you are just starting to make money moves or are well established on your wealth-building journey, comparing your 401(k) balance to the average balance of your peers can give you a good idea of where you stand.

Keep reading as we explore the average 401(k) account balances by age.

People with a 401(k) in their 20s have an average of $85,032 saved. The median for this age group is $32,992.

You'll notice that the average account balance is higher than the median account balance. That's because the average is found by adding up all the numbers and dividing them by the number of values in the data set.

In contrast, the median represents the middle value within a data set. Since some people have saved significantly more than their peers, this pulls the average number higher. 

That being said, the median number tends to be more representative of what people have in their accounts, which is why we're using that figure to determine the true average.

People with a 401(k) in their 30s have an average of $182,660 saved. The median for this age group is $76,809.

Throughout their 30s, savers have spent more time in their careers, which has likely led to higher incomes. But many in their 30s face headwinds against saving money, including the high cost of raising young children or buying a house.

People with a 401(k) in their 40s have an average of $381,020 saved. The median for this age group is $162,606.

With retirement popping up on the distant horizon and more time spent building a career, those in their 40s often have more financial resources to commit toward retirement savings. 

The push to save for retirement seems to kick in based on the significant jump in 401(k) balances.

People with a 401(k) in their 50s have an average of $599,684 saved. The median for this age group is $259,160.

If retirement seemed like a distant reality in their 40s, retirement might appear to be careening down the track in their 50s. Some savers take advantage of the opportunity to bump up their retirement contributions as their retirement years inch closer.

People with a 401(k) in their 60s have an average of $572,517 saved. The median for this age group is $207,716.

401(k) balances start to dip for savers in their 60s. That's because some people begin pulling back from work at this age and start tapping into their hard-earned retirement savings.

Of course, while some savers are reaping the rewards of savings, others are still putting in the effort and trying to push their savings into overdrive during their final working years.

People with a 401(k) in their 70s have an average of $428,614 saved. The median for this age group is $104,102.

As more people choose to move forward with retirement in their 70s, you'll notice a sharp drop in average retirement savings. After all, retirees usually lean on their 401(k)s to cover retirement expenses.

While the average 401(k) amount is encouraging, the median 401(k) balance is less than ideal. After all, many retirees will live for years or decades beyond their 70s.

If their balances dip close to the $100,000 mark now, it's possible many will struggle to make ends meet in their later years. 

Savers who want to prevent this unfortunate reality for themselves may want to consider investing more at the beginning of their career to use the power of investment growth to their advantage.

Comparing your 401(k) balance to the average for your age group should only serve as a starting point for your retirement readiness. 

Beyond this simple comparison, you'll need to consider how much money you'll need for a financially secure retirement and determine whether or not you are on track.

If you want a helping hand to help you build an effective retirement savings plan, seek out a competent financial advisor to work with.