News & Trending Investing News

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

Comparing average 401(k) balances offers a look at where your nest egg stands in relation to that of your peers.

senior citizens consulting a broker
Updated Oct. 16, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

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.

Find Medicare plans with low or $0/month premium
Compare Medicare Advantage plans side-by-side to find what’s right for you
— Select a state below —

The average account balance for people in their 20s

emiliezhang/Adobe 401k

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.

The average account balance for people in their 30s

Pcess609/Adobe hand putting coins in retirement jar

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.

The average account balance for people in their 40s

Nana_studio/Adobe woman saving pennies in piggy bank

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.

Earn $200 cash rewards bonus with this incredible card

There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.

The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.

This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.74%, 24.74%, or 29.74% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.

The best part? There's no annual fee.

Click here to apply now.

The average account balance for people in their 50s

Tada Images/Adobe 401(K) Plans on IRS mobile website

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.

The average account balance for people in their 60s

ariya j/Adobe cash money and paper note with text written FOR RETIREMENT

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.

The average account balance for people in their 70s

Lane Erickson/Adobe money jar for savings

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.

Bottom line

jiradet_ponari/Adobe Word Retire on White Calendar

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.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details