How Much Should You Have in Your 401(k) at 65? The Average Balance Might Concern You

If you're nearing retirement, you've probably wondered whether your savings are on track and whether your 401(k) balance is enough to support your lifestyle. While some savers are ahead, many Americans may be falling short of what's needed for a stress-free retirement plan.

Knowing the average 401(k) balance can help you make the right moves before age 65 to close any gaps. The numbers might be eye-opening, but the good news is there are still steps you can take to improve your outlook.

The average 401(k) balance for someone age 65

According to Empower, the average 401(k) balance for people in their 60s is $582,546, with a median of $191,372. That's higher than the overall average across all age groups, but it still may not be enough for many retirees, especially with longer life expectancies and rising healthcare costs.

Financial planners often recommend aiming for enough savings to replace about 75% of your pre-retirement income. For many, that may mean accumulating several times their annual salary, which makes these averages a reminder of how much catching up some may need.

The average 401(k) balance for all age groups

Across all age ranges, Empower reports that the average 401(k) balance is $351,242. This figure includes everyone from early-career savers to those already in retirement, so it naturally skews lower.

Even so, it's a useful benchmark for assessing where you stand relative to the broader population. Comparing your balance to national averages can highlight whether your savings rate and investment choices are aligned with long-term goals.

The average 401(k) balance broken out by age group

According to Empower, here's how average and median 401(k) balances vary by age:

• 20s: $125,180 average / $44,627 median
• 30s: $223,429 average / $81,314 median
• 40s: $425,142 average / $160,899 median
• 50s: $642,696 average / $252,501 median
• 60s: $582,546 average / $191,372 median
• 70s: $439,604 average / $98,076 median
• 80s: $422,319 average / $76,609 median

These figures illustrate the power of compounding and why consistent investing over decades is key. If you start early and increase contributions as your income grows, even modest returns can snowball into significant savings by retirement age.

How to increase retirement savings

If your 401(k) balance isn't where you'd like it to be, there's still time to take action. Simple, consistent changes can make a major difference in your long-term nest egg.

Eliminate debt

Carrying high-interest debt, such as credit cards or personal loans, can drain funds that could otherwise be invested for retirement. Paying off debt before leaving the workforce reduces your expenses and increases financial flexibility. Once you're debt-free, you can redirect those monthly payments toward your 401(k) or IRA.

Max out retirement account contributions each year

For 2026, the IRS allows individuals to contribute up to $24,500 to a 401(k). Workers aged 50 or older can make an additional $8,000 catch-up contribution, bringing the total to $32,500.

If you also contribute to an IRA, the 2026 limit is $7,500 (or $8,600 total with the $1,100 catch-up contribution for workers aged 50 or older). Maxing out these contributions, or getting as close as possible, can accelerate your savings in the final stretch before retirement.

Take advantage of an employer match

If your employer offers a 401(k) match, contribute at least enough to receive the full match; it's essentially free money for your retirement. For example, if your employer matches 50% of your contributions up to 6% of your salary, contributing that full amount can potentially boost your annual savings by thousands.

Over decades, these matched contributions, plus investment growth, can significantly increase your total balance.

Cut unnecessary spending

Trimming expenses is one of the simplest ways to free up cash for retirement savings. Review recurring subscriptions, dining out habits, and other discretionary spending.

Redirecting even a few hundred dollars per month to your 401(k) can add up over time. Thanks to compounding, consistent small contributions can grow into large sums by retirement.

Take on extra work

A part-time job, consulting project, or side hustle can create new income streams dedicated solely to savings. Beyond the extra money, staying active in the workforce can delay withdrawals from retirement accounts, giving investments more time to grow.

Even short-term earnings boosts during your 50s and early 60s can have a lasting impact on your overall retirement readiness.

Reassess your investment allocation

As you approach retirement, it's wise to review your investment mix. A portfolio that's too conservative may limit growth, while one that's too aggressive can expose you to volatility.

Consider shifting gradually toward a balanced allocation of stocks, bonds, and cash that aligns with your time horizon and comfort level. Periodic rebalancing can help preserve returns while managing risk.

Bottom line

The average 401(k) balance for those near retirement may not be enough to sustain a comfortable lifestyle, but averages don't define your personal path. By maximizing contributions, reducing debt, cutting costs, and staying invested, you can build a stronger foundation for the future.

Smart, consistent decisions today can help you strengthen your retirement plan and move closer to the financial freedom you've worked toward your entire career.