Retirement Retirement Planning

Here's The Average 401(k) Balance Today (It May Surprise You)

These numbers don't tell the whole story.

By Catherine Collins , Edited by Laura Hohenstein

Updated March 31, 2026

Add Us On Google

Knowing how much to save for retirement can be incredibly daunting. There are many different benchmarks that financial advisory firms recommend employees meet at different ages. However, the truth is that Americans don't have as much saved in their 401(k)s retirement plans as they want to.

Headlines might report very large numbers for average 401(k) savings across different age groups; however, viewing the median 401(k) numbers is likely a more accurate indicator of what's typical. The average 401(k) balance is often brought up by people with high incomes and large 401(k) balances. So, with that in mind, below are the most recent 401(k) balance numbers according to data from Empower.

Steal this billionaire wealth-building technique

The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.

A new company called Masterworks allows everyday investors to buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.

If you have at least $10k to invest, see what Masterworks has on offer. (Hurry, they often sell out!)

Employees in their 20s and 30s are just getting started

Data from Empower found that the average 401(k) balance for people in their 20s is $116,872, while the median is $43,192. For employees in their 30s, the average balance is $212,356, while the median is $78,857.

Keep in mind that it's far more common for workers in their 20s and 30s to have lower 401(k) balances. Many of these workers are balancing priorities such as paying down student loans, saving up for a house, and paying for daycare. Although people in their 20s and 30s have more expenses than ever before, it is still the best time to start investing for retirement, thanks to the power of compound interest.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Workers in their 40s and 50s make more progress towards retirement

According to data from Empower, the average 401(k) balance for people in their 40s is $409,686, while the median is $156,675. For employees in their 50s, the average balance is $629,000, while the median is $246,554.

Your 40s and 50s are typically high-earning years. This is a time when you are no longer an entry-level worker, and you have established yourself and your career. This is a time when many workers decide to increase their contribution limits, but it's also when the gap between the average 401(k) balance and the median 401(k) balance grows.

Many workers head into retirement with lower balances than expected

According to data from Empower, the average 401(k) balance for employees in their 60s is $576,755, while the median is $187,249.

Keep in mind that many retirees have more than one source of income. These workers may also have invested in IRAs, have Social Security benefits, and may own small businesses or earn money from renting out real estate, all of which provide income during retirement.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

The important differences between average and median retirement savings

While many reports focus on average 401(k) balances, it's also important to consider median retirement savings. The median retirement savings is often a better benchmark because it reflects a more typical 401(k) balance, whereas the average must incorporate extremes at either end. The average 401(k) balance is not the midpoint, unlike the median. The average balance includes those who have not saved up much at all, as well as those who have maxed out their 401(k)s from the beginning.

Ways employees can grow their nest egg over time

If you want to grow your nest egg over time, there are several steps you can take. First, contribute enough to get the employer match if your employer offers one, as this is free money towards your retirement. Once you hit age 50, take advantage of catch-up contributions to add to your 401(k) as you need retirement.

Finally, it's important to increase your 401(k) contributions over time. Some employers allow you to do so automatically, while others may require you to log in to your account and increase your contribution percentage each year.

The new 2026 401(k) contribution limits and updated policies

As of 2026, there are new 401(k) contribution limits. For example, workers can now contribute up to $24,500 per year to their 401(k). Additionally, those aged 50 and above can make an extra $8,000 in catch-up contributions, and workers 60 to 63 can make an additional $11,250 in contributions.

Additionally, thanks to updated policies, workplaces are now required to automatically enroll employees in a 401(k) plan, which can reduce paperwork backlog and help people start investing right away.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

How much people need to retire, according to Fidelity

Fidelity Investments published a few benchmarks that employees can refer to when deciding whether or not they're on track for retirement. For example, Fidelity suggests having one times your salary saved by age 30, three times by age 40, six times by age 50, and 10 times by age 67. These benchmarks may be more useful to people than looking at 401(k) averages.

Bottom line

Ultimately, reading about 401(k) averages can feel disheartening for those balancing numerous financial obligations at once. Many people in their 30s and 40s are paying for child care, helping their parents, handling rising inflation costs, and paying off their own student loans. That's why workers should not be hard on themselves if they're not near the age-based averages listed above.

What this data shows is that more people are working towards saving for retirement than those who have a fully funded nest egg. That said, it is possible to have a stress-free retirement by taking certain actions now, such as increasing 401(k) contributions and taking advantage of an employer match.

More from FinanceBuzz: