The 'Average' 401(k) Balance Is $167,970 - But the Typical Saver Has Far Less

A record-high 401(k) balance sounds like good news. Vanguard's How America Saves 2026 report found that the average account held $167,970 at the end of 2025. Yet the median balance (the true midpoint, with half of participants above it and half below it) was only $44,115.

That nearly four-to-one gap matters if you're trying to see how your retirement savings stack up. The national average may leave you discouraged or overly confident, depending on your balance. A comparison with savers near your age provides a much clearer picture. Here is what the numbers actually reveal.

The average balance isn't remotely typical

Vanguard analyzed 4.6 million participant accounts for its 2026 report. The average balance rose 13% in 2025 to $167,970, while the median climbed 16% to $44,115.

Although both reached record highs, the average was nearly 3.8 times the median. Put plainly, most Vanguard participants had nowhere close to $167,970 in the account included in the study.

A small group pulls the average upward

Averages are especially slippery when money is distributed unevenly. Vanguard found that 26% of participants had less than $10,000, while 18% held at least $250,000.

Those large accounts drag the average well above the middle. In fact, Vanguard said the $167,970 average was roughly equivalent to the 75th percentile. About three-quarters of participants had less than the figure commonly presented as "average."

Income, age, and job tenure shape the numbers

The largest balances generally belonged to participants who were older, earned more, and had stayed with the same employer longer. Participants with at least 10 years of job tenure had an average balance of $360,255 and a median of $186,335.

By comparison, those with less than two years of tenure had an average of $17,865 and a median of $3,327. Mixing these groups together creates a national average that describes very few actual people.

$44,115 may provide about $147 per month

Using a simple 4% annual withdrawal as an illustration, a $44,115 balance would generate about $1,765 per year, or $147 per month, before taxes.

That isn't a personalized withdrawal recommendation, but it makes the scale of the balance easier to grasp.

Fidelity's lower figure doesn't contradict Vanguard

Fidelity's year-end analysis found an average 401(k) balance of $146,400.

Neither provider is necessarily more correct. Fidelity analyzed 24.8 million participants across 26,200 plans, while Vanguard studied 4.6 million accounts in approximately 1,300 plans. Differences in employers, worker demographics, salaries, and plan design could shift both the median and average. Each report describes its own participant population.

Compare your balance with savers your age

The age breakdown is considerably more useful than the national average:

Balances generally rise with age as participants have more time to contribute, receive employer matches, and benefit from potential investment growth. Comparing yourself with someone in the same decade removes at least some of the distortion.

Younger workers may be doing better than the balance suggests

A median balance of $2,234 for participants under 25 looks tiny, but many people in this group have only recently entered the workforce. Their income and contribution rates also tend to be lower.

For younger savers, establishing the habit may matter more than hitting a large balance immediately. Receiving the full employer match and increasing contributions with future raises could make the early numbers far less important over time.

The 65-plus number requires some context

The average balance reached its highest level among participants 65 and older, at $330,186. However, the median dipped from $107,269 for ages 55–64 to $103,202 for the oldest group.

Some older participants have likely begun taking withdrawals or rolling money into IRAs. Vanguard also cautions that its figures measure money held in a participant's current or former employer plan, not necessarily that person's lifetime retirement savings, pension, IRA, or household assets.

Hardship withdrawals point to another problem

Among participants who had access to hardship withdrawals, 6% took one in 2025, up from 5% in 2024 and continuing a multiyear climb. Nearly half of those participants made more than one withdrawal during the year.

That suggests some workers are asking their retirement account to serve two jobs: long-term savings and emergency funding. Vanguard found the median hardship withdrawal was $1,900, but repeated withdrawals could quietly erode future growth.

Check your savings rate, not only your balance

Your age-group median is a useful benchmark, but your contribution rate shows where you're headed. Vanguard suggests a total retirement savings rate of 12% to 15% of income, including employer contributions. Only 51% of participants met the applicable target or reached the annual contribution limit in 2025.

If 12% feels unrealistic today, a smaller increase still counts. Check whether your plan offers automatic escalation, which raises your contribution percentage gradually, often once per year.

Bottom line

The $167,970 average 401(k) balance is heavily influenced by larger accounts, while the $44,115 median better reflects what a typical Vanguard participant has saved. Comparing your balance with the median for your age and reviewing your contribution rate offers a more useful measure of whether you're on track for retirement.

Before drawing conclusions, add up every retirement account you own, including old workplace plans and IRAs. Provider reports generally capture only the accounts they administer, so comparing a single 401(k) with a national benchmark could make your overall position look weaker than it really is.

You May Also Like

$200 Bonus + Up to 5% Cash Back

Earn a $200 bonus after spending $500 on purchases in your first 3 months from account opening. Member FDIC

SPONSORED

Almost 80% of Americans Fear a Retirement Age Increase — Here’s the Real Reason Why

By FinanceBuzz Editors

10 Smart Money Moves to Retire

By FinanceBuzz Editors

The Easiest Way to Diversify Your Investment Portfolio With Fine Art

By FinanceBuzz Editors

7 Brilliant Ways to Build Wealth After 40

By FinanceBuzz Editors

5 Ways Seniors Are Throwing Away Money

By FinanceBuzz Editors

Best High-Yield Savings Accounts of August 2026

By FinanceBuzz Editors

Save Money and Get Huge Discounts on Everyday Purchases

AARP Benefits

• Huge discounts on travel, groceries, prescriptions and more
• Access to financial planning resources and health tools
• Join AARP and get 25% off with automatic renewal

Become a member now!

---

Subscribe Today

Unlock the Best Banking Deals and Bonuses

From high-yield savings accounts to cashback checking and sign-up bonuses, we bring you the best banking offers to grow your money smarter.

or

SEE TOP BANKING OFFERS →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms

Author Details

Kristin Hitchcock

Kristin Hitchcock has contributed nearly 200 articles to FinanceBuzz with a specialized focus on retirement planning and the decisions that define long-term financial security. Her writing helps readers benchmark their 401(k) and net worth by age, develop top-notch Social Security strategies, and make smarter everyday money decisions.