Retirement Retirement Planning

Trump Said Your 401(k) Is Up $30K - How To Tell If Your Retirement Savings Are Actually on Track

This benchmark will help you know if you're ready.

By Catherine Collins , Edited by Laura Hohenstein

Updated May 8, 2026

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During his February 24 State of the Union address, President Donald Trump said the typical 401(k) retirement plan balance has risen by at least $30,000 since he took office. While retirement balances have increased over the last few years, data from Fidelity shows a slightly smaller number.

At the end of the third quarter of 2025, Fidelity reported that the average 401(k) balance was $144,400. That was $12,700 more than the end of 2024. Of course, the most important number for Americans is not the average 401(k) balance, but how much they personally need to save to retire on time and enjoy their later years.

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The number that matters most is your personal retirement readiness

Although there are average retirement numbers you can use to gauge your retirement readiness, what really matters most is your personal goals. Some people envision a lavish retirement, while others may not need as much to live on. However, if you prefer retirement benchmarks, Fidelity provides guidance on where workers should be at each decade of their lives.

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Retirement benchmarks by age, according to Fidelity

According to Fidelity, a good goal is to save 10 times your income by age 67. In order to get there, Fidelity recommends that you save one times your salary by age 30, three times your salary by age 40, six times your salary by age 50, and eight times your salary by age 60. While retirement savings are very personal, and your lifestyle choices will largely determine how much you need, Fidelity uses this benchmark to give workers a guide for evaluating their progress.

Using the 4% rule to determine how much you'll need

Another benchmark you can use to determine how much you may need in retirement is the 4% rule. William Bengen developed the 4% rule to find a withdrawal strategy that would allow retirees to live on their savings while leaving enough invested to continue compounding.

Bengen acknowledges that today's inflation rate means retirees face greater risk and can approach their retirement spending in many different ways. For example, they can withdraw different amounts each year depending on market performance or live on the same amount year after year.

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Social Security adds an additional income stream for many retirees

In addition to 401(k) income, Social Security can help fill the gap in retirement income. The amount of money you get for Social Security depends on how much you have earned and the age you decide to start collecting a Social Security check.

For example, those who delay Social Security until age 70 can receive a larger check than those who collect earlier. You can create a Social Security account to see what your projected check would be in the future, which can help determine how much you'll need in your 401(k) to retire comfortably.

Consistent retirement investing beats trying to time the market

According to Charles Schwab data, the best investment strategy is to invest immediately, as it is incredibly difficult to time the market. Schwab explains that there is a cost to waiting to enter the market at the perfect time. Ultimately, consistently investing for retirement over a longer period of time is a more straightforward approach than trying to enter and exit the market during the most ideal market cycles.

How to stay on track and not get swayed by headlines

If you read sensational headlines or see your 401(k) balance dip, it's easy to panic and worry about your future. However, using tools, such as a personal retirement calculator, can help turn your stress into awareness and action. As long as you have a plan for weathering the ups and downs of market cycles, you can still reach your goals even if the economy has one (or a few) bad years.

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Where to get help when creating a retirement plan

If you need help creating a retirement plan for figuring out whether or not you're on the right track, work with a financial advisor. A financial advisor can take the time to review your current income, understand your retirement savings, and listen to your financial goals. Using that information, an advisor can help you determine how much you need to invest in order to retire on time.

Bottom line

To have a stress-free retirement one day, it will take some planning. While it may be stressful if you feel behind when meeting specific retirement benchmarks, what really matters is your personal numbers, how much you actually need to live on, and your own goals for your golden years. Ultimately, knowledge is power, so taking the time to use a retirement calculator and create a retirement plan can help give you peace of mind and a goal to work towards.

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