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Here’s How Much 55-Year-Olds Have In Their 401(k) on Average (How Do You Compare?)

See where you stand and find out how to accelerate savings.

By Adam Palasciano

Edited by Jessica Gibson

Updated Nov. 26, 2025

Turning 55 can be a wake-up call when it comes to planning for retirement. Many Americans of that age find their 401(k) balances falling short.

Even if retirement feels out of reach, there is still time to make progress toward saving for your golden years. Find out how much the average 55-year-old has in their 401(k) and what you can do to give your own savings a boost.

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How much does the average 55-year-old have in a 401(k)?

Planning for retirement can feel overwhelming for 55-year-olds who realize their nest eggs are not as large as they had hoped. According to Vanguard's "How America Saves 2025" study, the average 401(k) balance for ages 55 to 64 is $271,320, while the median is $95,642.

In many ways, the median, which represents the middle number in a series, is a better yardstick, since wealthy folks can skew the average higher. Since this data spans the ages of 55 to 64, actual 55-year-olds may have slightly less saved than these numbers suggest.

Knowing where you stand is the first step toward mobilizing and quickly closing any savings gap. Here are some actionable strategies you can use to supercharge your 401(k) efforts.

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Start saving as much as you can right away

If your nest egg looks too small, there is a good chance you have not saved enough in the past. You can begin to right that wrong by saving more today.

The longer you delay saving, the less time you will have to take advantage of compound growth. So, start saving immediately and put away as much as you can afford, even if it means making tough budget cuts.

Automating contributions makes it easier to stay consistent. The sooner you increase savings, the more time compound interest has to multiply your money.

Take advantage of catch-up contributions

Once you hit the age of 50, the IRS lets you add a little extra to your retirement accounts each year.

In 2026, those who are 50 or older can contribute an extra $8,000 to their 401(k) and an extra $2,026 to an IRA.

Workers between the ages of 60 and 63 can contribute even more, specifically up to $11,250 extra to a 401(k) account.

These additional dollars compound over time and can bridge large gaps in your savings. Even small increases using catch-up contributions can eventually lead to big gains in retirement savings.

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Stay at a job until you're fully vested

Does your employer contribute to your 401(k)? If so, remaining on the job until you're fully vested will ensure you keep every dollar of that benefit.

Leaving before vesting means forfeiting the matching funds you've earned. That can cause a nasty crack in your nest egg.

Review vesting schedules and plan your career moves around them. Waiting just one more year could mean keeping thousands in employer contributions.

Diversify your assets

Experts generally urge investors to avoid concentrating too much money in a single investment type. Those who do so could experience big losses if their investment crashes.

By spreading contributions across stocks, bonds, and other asset classes, you can reduce the risk of losing huge amounts of money if a single investment goes south. Diversification helps protect against market drops while still providing growth potential.

A mix of asset classes also provides you with flexibility when you start withdrawing the money.

Control your spending

Slashing non-essential spending will increase your capacity to save each month. Small cuts in dining, subscriptions, and travel can free up hundreds of dollars for 401(k) contributions.

Think of it as redirecting lifestyle funds into lifelong financial stability. Creating a written budget can help you stay disciplined and focused on savings goals so you can get ahead financially.

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Don't touch your retirement savings until retirement

Once you turn 59 1/2, you can begin to make penalty-free withdrawals from your retirement accounts. However, if you decide to withdraw before that age, you will generally pay a heavy price.

Early withdrawals from retirement accounts incur taxes and penalties and hurt your ability to compound your savings. By contrast, letting your savings stay untouched allows the money to grow uninterrupted into retirement.

Taking money from your 401(k) can disrupt long-term growth and should be a last resort. Put money into an emergency fund so you avoid having to make early withdrawals from your retirement accounts.

Contribute to your workplace retirement account at least up to the full employer match

Employer contributions to your 401(k) account are essentially free money and can yield immediate returns. Never forgo matching funds, as they provide an immediate return on investment that is tough to beat.

Prioritize at least the full match before exploring other savings options. Skipping the match is like leaving a bonus on the table.

Consider contributing to a Roth IRA

If your earnings are low or moderate, consider contributing to a Roth IRA. Contributions are made after you pay taxes on the money, but withdrawals are tax-free after age 59 1/2.

Immediate tax breaks are great, but they have a smaller impact on taxpayers with lower incomes. So, it might be worth paying the relatively small tax now to enjoy tax-free growth and withdrawals later.

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Don't forget about required minimum distributions (RMDs)

Eventually, the government wants to get its hands on some of the money you have been contributing to tax-deferred IRAs and 401(k) accounts. Required minimum distributions (RMDs) begin at age 73, and failing to withdraw the required amounts can trigger steep penalties.

Plan now to account for future RMDs and their tax impact. Knowing the RMD schedule can help you plan the best withdrawal strategy to minimize taxes. Strategic use of Roth IRA conversions can now also reduce future RMDs.

Bottom line

With the current average 401(k) balance between ages 55 and 64 well above a quarter-million dollars, and a median balance just under $100,000, many 55-year-olds likely need to play catch-up with their savings.

By maximizing matches, controlling spending, and using other strategies, you can boost your balance fast. Take action now to start building a truly stress-free retirement.

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