Retirement Retirement Planning

I Make About $88,000 Per Year and Currently Have Around $160,000 in My 401(k), Am I too Far Behind?

Is $160,000 in your 401(k) too little? It might not be as bad as you think.

By Anna Armstrong , Edited by Laura Hohenstein

Updated Sept. 7, 2026

Add Us On Google

If you've ever logged into your 401(k), looked at the balance, and wondered whether you're falling behind, you're not alone. One 38-year-old Reddit user is in the same boat. The user earns roughly $88,000 a year and has about $160,000 in their 401(k). They're contributing 14% of their salary, receiving a 6% employer match, and have already maxed out their Roth IRA.

The Reddit user's goal is to retire at 65, but they're unsure whether that's realistic given their current retirement savings. Is the retirement goal achievable? The answer might be more encouraging than you think.

Below is a look at where this user stands, as well as advice on how to improve your retirement plan.

Set up direct deposit - pocket $400

Set up an eligible direct deposit with SoFi Checking and Savings and you could pocket a bonus of up to $400. Make the switch, set up direct deposit, earn the bonus. It basically takes no extra work at all other than following these steps.

Why people are switching: This account earns up to an insane 4.00% APY¹ Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC. on savings for up to six months (3.10% APY standard + 0.90% APY boost) on top of that $50 or $400 bonus.² New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at <a href="https://www.sofi.com/banking/checking-offer/">sofi.com/banking/checking-offer/</a> That's way better than the measly 0.38% APY (as of 06/15/26)³ Based on <a href="https://www.fdic.gov/national-rates-and-rate-caps">this</a> FDIC data, as of 6/15/26. national average savings accounts offer.

No monthly fees and no surprises. Open your account and earn up to a $400 bonus

What current benchmarks say about the $160,000

Based on current benchmarks, $160,000 in a 401(k) might be a little low for a 38-year-old. Fidelity recommends saving 1× your current income by 30, 3× your current income by 40, and 10× your income by 67 if you plan to retire at that age.

Based on this recommendation, the Reddit user is $72,000 above the age-30 benchmark since the goal is $88,000. The 40-year benchmark is $264, 000 (88,000 ✕ 3), so they're at least $104,000 short. Since Fidelity recommends the 1× and 3× benchmarks for retirement at 67, the figure might be higher for the Reddit user since they want to retire at 65.

While the $160,000 figure is below Fidelity's recommendation, it's worth noting that the user still has two years before they hit 40. That means they might not be as far off the benchmark as they appear now.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

Where the user stands compared to other 38-year-old Americans

According to Empower, the average retirement savings balance for people in their 30s is $286,205, and their median is $98,952. If we go by the average, the Reddit user is behind their peers. However, the average might not be a great benchmark, since it's based on the total retirement savings of all savers — the figure might be skewed by high-income earners.

The median, on the other hand, shows the midpoint of all earners. So, it might show a more accurate picture of the typical retirement savings balances of 38-year-olds. Based on this figure, the Reddit user is far ahead of other Americans in their age group.

Is the 14% contribution enough for their savings plan?

Fidelity recommends saving at least 15% of your pre-tax income — including your employer's match. So, the Reddit user's current contribution might be enough.

The user is currently contributing 14% of their $88,000 salary to their 401(k), while their employer contributes another 6%. That brings the total contribution to 20%, which is above the recommended threshold.

That said, Fidelity recommends the 15% rate to individuals looking to retire at 67. So, the user may still need to increase their contribution if they want to retire at 65.

What's more, they admit that they got a late start to saving for retirement because they didn't know much about it. They may need to consistently maintain a higher rate to catch up with people in their income and age bracket who started saving earlier.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up to 25% off your AARP membership, making it just $15 the first year with auto-renewal.

Is the Reddit user too far behind?

Not really. While they might be below some benchmarks, the Reddit user is doing quite well. Beyond surpassing Fidelity's recommended savings benchmark, they've also maxed out their Roth IRA.

According to the IRS, the maximum Roth IRA contribution limit is $7,500 for 2026. If the user contributes 14% to their 401(k) and receives the full 6% employer match, their contribution for the year could be roughly $25,100.

14% ✕ 88,000 = 12,320

6% ✕ 88,000 = 5,280

12,320 + 5,280 + 7,500 = 25,100

What's more, at 38, the user may still have 27 years of contributions to go before they retire. That's quite a long time for their current and future contributions to compound.

How to boost retirement savings

If you're also worried about your retirement savings, consider the following strategies to grow your accounts:

Gradually increase your contribution rate: Try to increase your percentage contribution whenever you get a raise. Increasing it by as little as 1% could boost your retirement savings, especially if you still have many years to go before retirement.
Make sure your money isn't sitting idle in your 401(k): Let your money work for you by choosing investments such as bonds, company stocks, or index funds. However, be careful not to take excessive risks, as that could jeopardize your contributions.
Direct extra money to your retirement accounts: Put unexpected money, like tax refunds and bonuses, in your 401(k). This way, you could increase your total contribution without necessarily reducing your monthly budget.
Capture the full employer match: If your employer matches 401(k) contributions, contribute enough to receive the full match whenever possible. For example, if your employer requires you to save at least 6% of your pay to get the full match, increase your contribution to reach that 6% threshold. You could do so by cutting spending on things such as subscriptions and takeout.

Bottom line

If you're wondering whether you're on track for retirement, like our Reddit user, compare your savings balance and contribution rate to current benchmarks. If you're behind, consider reducing your spending and increasing contributions. Also, allocate extra funds to your retirement accounts and invest your cash rather than letting it sit idle.

If you're at par with current benchmarks, stay consistent while gradually increasing your contributions. The more you have saved up for retirement, the better your chances of living comfortably.

More from FinanceBuzz: