How Much Should You Have in Your 401(k) at 55? The Average Balance Might Concern You

By 55, you're around a decade away from the "typical" retirement age. Now's the time to carefully consider your future spending and see how your retirement savings stack up to what you should have at that age. While your required savings will depend on many factors, you can use age-based benchmarks to determine if your 401(k) balance is falling short.

Thankfully, you still have time to build a more secure retirement, even into your late 50s. Here's how much the average American has in their 401(k) and what to do if you're behind.

The average 401(k) balance at 55

According to Vanguard's 2025 How America Saves report, Americans aged 55-64 have an average 401(k) balance of $244,750. Meanwhile, recent data from Empower shows a much higher average of $629,000 for 401(k) savers in their 50s.

While these large numbers may sound surprising, consider how averages work. Since they're based on all the 401(k) balances of a large group, even a small number of people with very high balances could skew the numbers. Depending on their income, job situation, and other factors, some people can afford to save significantly more than others.

The median is the more honest metric

The gap between the average and median 401(k) balances for this age group is surprisingly wide and in the hundreds of thousands. Vanguard reports a median of only $87,571 for the 55-64 age group. Empower lists the median at a higher $246,554 for those in their 50s.

Since the median is a central number that isn't as much affected by unusually large or small 401(k) balances, it better represents the typical retirement saver. However, while the median can be a useful benchmark for comparisons, remember that it might not be enough to cover your retirement needs. You'll need to consider other income sources and your spending.

What your retirement savings target should be

Fidelity suggests having seven times your salary saved by age 55, eight times saved by 60, and 10 times saved by 67. The U.S. Bureau of Labor Statistics reports a median weekly income of $1,235 ($64,220 per year) for full-time workers.

Therefore, the typical worker would need roughly $450,000 to $514,000 saved to be on track in their late 50s. That's well above what the typical 55-year-old has in their 401(k).

However, your savings target will depend on personal factors, such as your planned retirement age, expected spending, life expectancy, and other retirement income sources.

Why many in their 50s haven't saved enough

Many 55-year-olds may be behind for various reasons, including competing priorities like paying for their children's college and paying off a mortgage.

Inflation has also raised the cost of everything from housing to food. So, some 50-somethings may be choosing between contributing more to retirement and covering necessities. Saving for retirement can be even harder without budgeting and sufficient pay increases.

Plus, Gen Xers (aged 45 to 60) owe an average of $158,105 in debt, according to 2025 Experian data. Auto loans, student loans, credit cards, and mortgages can quickly take up leftover money each month, with potentially high interest costs.

What to do if your 401(k) is off track

If you haven't saved enough at 55 to reasonably reach your savings target, it's not too late to get back on track. You're in a better position than those who are in their 60s and have fewer working years to readjust their finances.

However, you should plan to boost your contributions as much as possible and possibly rethink what retirement will look like, including when you'll start that next chapter.

Take advantage of catch-up contributions

Your 50s are a prime time to catch up on 401(k) contributions.

The IRS allows workers 50 and older to contribute up to $32,500 in these accounts in 2026. That amount includes the $24,500 standard contribution limit plus an $8,000 catch-up limit.

The SECURE 2.0 ACT allows you to contribute even more when you're 60 to 63. Thanks to an $11,250 catch-up contribution limit, someone in that age group can contribute up to $35,750 to their 401(k) in 2026.

Maximize employer matches

Many employers offer a partial or full match for 401(k) contributions, often up to a percentage of your salary. Even if your 401(k) is on track, it still makes sense to contribute enough to get this "free" money, which can grow in your account.

However, if you start a new company in your late 50s, be aware of the vesting rules that apply to these contributions. You might need to stay with your employer for several years before the matches are fully yours.

Consider delaying Social Security

If you planned to start receiving Social Security before full retirement age (67 if you were born in 1960 or later), you may want to reconsider, especially if your 401(k) is falling short.

Claiming benefits as early as age 62 reduces your amount by up to 30%, making it even harder to stretch your retirement savings. On the other hand, claiming benefits later at age 70 could boost your monthly check by up to 24%.

However, there's not one right claim age for everybody. For example, claiming later might make more sense if you're very healthy and longevity runs in your family than if you're unsure you'll be able to work well into your 60s.

Reassess your full retirement plan

You might also need to rethink what retirement will look like. Maybe you're open to working a full-time job for a few years longer or opting for semi-retirement. Either gives you more time to contribute to your savings, cover expenses, and potentially delay claiming Social Security.

Also, review your retirement budget to determine whether you can afford your desired lifestyle. If you're significantly behind on your savings at 55 and don't expect to catch up, you might need to sacrifice some luxuries and settle for a more modest lifestyle in retirement.

Bottom line

Even if you're currently falling short, don't let these 401(k) balance benchmarks for 55-year-olds discourage you if you're short of that amount. Remember that your 401(k) is only part of the picture when it comes to retirement readiness. Social Security, home equity, balances in IRAs and brokerage accounts, and even part-time income also have their place.

A financial advisor can better determine whether you're on track for retirement and offer realistic next steps to resolve any gaps. Also, use the Social Security benefit estimator to better understand how much savings you might need to supplement that income.