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Here's the Average 401(k) Balance of 55-Year-Old Americans (How Do You Compare?)

Smart adjustments in your 50s can help you strengthen your retirement plan and future income.

By Kristin Hitchcock

Edited by Laura Hohenstein

Updated Nov. 10, 2025

By age 55, many Americans begin taking a closer look at their retirement portfolio to see if they're on track to retire comfortably. It's a sharp question, and comparing your 401(k) balance to peer benchmarks can help you assess your standing.

We'll examine what the data shows about the average (and median) 401(k) balance for 55-year-olds, and then walk through actionable strategies to boost your retirement savings in the next decade.

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What the data says: typical 401(k) for 55-year-olds

There's no single "official" 401(k) figure for age 55, because outcomes vary by income, tenure, and investment behavior, but several data points offer guideposts. According to recent data from Fidelity and Vanguard, Americans between 55 and 59 hold an average 401(k) balance of roughly $244,000 to $271,000. The median (where half have more, half have less) is closer to $87,000 to $95,000. That gap means many savers are behind, while a few high earners skew the average upward. If you're below that range, you're far from alone.

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Why so many people fall behind

Aging into your 50s often brings competing priorities, like mortgage payments, college costs, or supporting aging parents. Many people also lacked access to 401(k) plans early in their careers or didn't contribute consistently. Market downturns and job changes compound the issue. The good news: your 50s are a prime time to accelerate savings thanks to catch-up contributions and compounding growth potential.

How much should you aim to have by 55

Financial experts often suggest saving seven to eight times your annual salary by age 55. For someone earning $90,000, that's around $630,000 to $720,000 in total retirement savings, not just in your 401(k). These benchmarks aren't rigid rules but useful guideposts. If you're below target, focus on what you can control from here on out: contributions and spending habits.

1. Take advantage of catch-up contributions

Once you turn 50, the IRS lets you make extra 401(k) contributions: an additional $7,500 per year, on top of the $23,500 regular limit. That's $31,000 total you could stash away annually. If your plan offers Roth options, consider splitting contributions for tax diversification. Every extra dollar saved in your 50s can compound meaningfully over the next decade.

2. Gradually increase your contribution rate

Small percentage increases can make a big difference over time. Try bumping up your 401(k) deferral by 1% or 2% each year, ideally after a raise, so you won't notice the change in your paycheck. Many employers now offer automatic escalation features that increase your savings rate annually without you lifting a finger. This slow, steady approach can transform your balance over time.

3. Rebalance and reassess your investments

By 55, your portfolio may have drifted toward more conservative assets (sometimes too conservative). Check your asset allocation to ensure it still fits your time horizon. Keeping too much in cash or bonds could limit growth. Meanwhile, review fund fees and consider switching to low-cost index options to capture more market returns over the years ahead.

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4. Consider a Roth or "mega backdoor" option

If your employer's plan allows after-tax contributions and in-plan Roth conversions, the "Mega Backdoor Roth" strategy can be a powerful tool. It lets higher earners contribute well beyond normal limits while gaining tax-free growth potential. Even smaller Roth contributions can add flexibility, giving you more control over taxes in retirement, a key factor in preserving your income later on.

5. Use an HSA or IRA to supplement savings

If you're already maxing out your 401(k), consider Individual Retirement Accounts (IRAs) or Health Savings Accounts (HSAs) as additional retirement vehicles. HSAs, in particular, offer a triple tax advantage: contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. Think of them as a stealth retirement account for healthcare costs down the road.

6. Coordinate your plan with Social Security

Your 401(k) doesn't exist in isolation. When you plan retirement income, think about Social Security timing too. Delaying benefits can increase your monthly payout by up to 8% per year between ages 67 and 70. Coordinating withdrawals and claiming strategies could stretch your savings further, potentially reducing how much you need to pull from your 401(k) early on.

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7. Cut hidden costs that drain your nest egg

Fees can quietly eat into your returns. A 1% annual expense ratio might sound small, but over 20 years it could reduce your balance by six figures. Review your plan's fund options, compare expense ratios, and favor low-cost index funds or target-date funds when appropriate. The less you pay in fees, the more your money works for you.

Bottom line

By 55, many Americans have a 401(k) balance of around $244,000 to $271,000, but averages can be misleading. What truly matters is how prepared you are for your own future. Take this time to check up on your retirement readiness and fine-tune your strategy for the next decade.

According to the Employee Benefit Research Institute, workers who consistently contributed for 20 years or more had balances nearly five times higher than those who didn't. The takeaway? Consistency pays off, and it's never too late to make meaningful progress toward a stronger retirement plan.

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