Retirement Retirement Planning

The Average 50-Year-Old Has This Much in Their 401(k) — How Do You Compare?

Find out how to boost retirement savings if you have fallen behind.

By Michelle Smith

Edited by Chris Kissell

Updated Dec. 17, 2024

Many people who reach their 50s find that their 401(k) is shaping into a tidy nest egg. But it can be hard to judge whether your balance is where it should be relative to your retirement goals.

Are you putting enough money in savings to keep your retirement plan on track? Or do you need to put away more to keep up with others in your age group?

Find out how much money the average person in their 50s has in their 401(k) account. Then, read on to learn some tips about how to increase your savings.

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How much have people saved by their 50s?

People in their 50s have saved an average of $212,400 in their 401(k) account, according to Fidelity Investments. Meanwhile, the median amount is much lower — $64,300.

Why the difference? An “average” is the value you get when you add up a range of numbers, then divide that total by the number of items included in your data set.

That means the average can be skewed by people who have a lot of money in their account, as well as those who have very little.

On the other hand, the “median” refers to the midpoint of a range of numbers. In the Fidelity example, this means that half of all 401(k) accounts have less than $64,300 while the other half of accounts have more than $64,300.

The median can be more representative of what many people really have saved.

Having just $64,300 in a 401(k) — or even $212,400, for that matter — is not going to last you very long during retirement. Even worse, 1 in 5 individuals 50 and older have no retirement savings, according to an AARP survey.

Finally, remember that the numbers above represent the average and median values for people throughout their 50s. If you’re closer to 50 than 60, you’ve probably had less time to build wealth than someone who’s about to turn 58 or 59.

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How do you compare?

If you’ve saved more than the median or average 401(k) amount, you’re doing better than at least half of your peers. Still, if you can save more than just a couple hundred thousand dollars before retirement, doing so is a good idea.

Sticking to good savings habits should help you secure a comfortable retirement. It’s always worth saving more now if you can afford to do so.

It’s important to remember that even in your 50s, you still have time to save. Follow these steps to boost your savings as you draw closer to retirement age.

Begin saving the maximum in your 401(k)

In 2024, individuals can contribute $23,000 to their 401(k) accounts. In 2025, that amount grows to $23,500. Once you reach age 50, you can contribute an extra $7,500 to your account.

Saving the maximum plus the catch-up contribution can help you get closer to retirement savings goals one year at a time.

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Wait a little longer to retire

Retiring in your late 50s or early 60s sounds ideal to many. But if you can put off retirement for a few years, you’ll be able to continue adding to your 401(k) instead of withdrawing funds from it.

That way, the money you’ve already saved has more time to grow, which will leave you with more substantial savings when you do eventually retire.

Pay down debt so you can save more

The faster you can pay off your obligations, the less money you’ll waste on high-interest debt.

It’s important to build some savings, such as in an emergency fund. But using other money to pay off debt can save you a huge amount of money that will really help over the long run.

Cut unnecessary expenses from your budget

Take a look at your budget to find areas where you can cut costs by eliminating unnecessary expenses.

For example, dropping unused streaming subscriptions or cooking at home rather than eating out can free up money that can be turned into savings that will add up over time.

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Downsize your home

Moving into a smaller home might free you to save the money you would otherwise have spent on higher utility bills, property taxes, and home repairs.

Moving isn’t the right solution for everybody, but it can provide a quick boost to retirement savings for others.

Talk to a tax professional about lowering your tax bill

An accountant or other tax professional can review your situation and help you maximize tax savings.

For example, you might save more money by itemizing your tax deductions rather than taking the standard deduction. Or you might trim your tax bill by simply putting more money into a 401(k) or IRA.

Find ways to generate extra income

If you are far behind in your savings, look for ways to make extra money so you can catch up.

Picking up a side hustle or part-time job opens up a new revenue stream that you can channel entirely into savings or use to pay off debt faster.

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Bottom line

If you’re worried about how much you’ve saved for retirement compared to peers, look over your budget and recommit to retirement savings goals.

Even in your 50s, there’s still plenty of time to make the financial changes that will set you up for a stress-free retirement.

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