401(k) Balances by Age: Where Do You Stand?
Understanding the average and median 401(k) balance by age helps you see where you really stand. Vanguard’s data shows a wide gap between the average balance of $148,153 and the median of $38,176, revealing how uneven retirement readiness is. Use these benchmarks to evaluate your savings progress.
401(k) Benchmarks by Age
When it comes to 401(k) retirement savings, many investors have no idea whether they’re ahead, behind, or somewhere in the middle.
That’s why age-based benchmarks matter.
Using numbers from Vanguard’s How America Saves 2025 report – a dataset covering nearly 5 million Americans – here’s a clear look at where savers your age actually stand.[1]
Why Averages vs. Medians Matter
When you look at 401(k) balances, averages can often be misleading.
Vanguard’s data shows a small number of very large accounts, typically held by longer-tenured, older, or higher-income workers.
This pulls the average up much higher than what most people actually have saved.
That’s why the median balance is so important.
The median represents the typical saver – half of participants have more, and half have less.
- Average 401(k) balance: $148,153
- Median 401(k) balance: $38,176[1]
That gap highlights just how uneven retirement readiness is across the country.
Most workers have far less than the average suggests, which is why comparing both numbers gives a much clearer picture of where you truly stand.
401(k) Balances by Age (Average + Median)
| Age Group | Average Balance | Median Balance |
|---|---|---|
| Under 25 | $6,899 | $1,948 |
| 25–34 | $42,640 | $16,255 |
| 35–44 | $103,552 | $39,958 |
| 45–54 | $188,643 | $67,796 |
| 55–64 | $271,320 | $95,642 |
| 65+ | $299,442 | $95,425 |
Now let’s break down what these numbers mean for each age group.
Under 25: Early Savers Just Starting Out
Early-career workers typically have low balances simply because they’ve had little time in the workforce.
Vanguard reports that the median balance for this age group is only $1,948, meaning half of young savers have less than $2,000 set aside.
The good news?
Early savers benefit the most from time in the market. Small contributions now, especially if you grab your employer match, compound for decades and make a massive difference later on.
Ages 25-34: Building a Foundation
According to the Vanguard report, the median balance increases to $16,255, reflecting consistent contributions and early compounding.[1]
This age group is typically juggling major financial pressures such as student loans, rent, and early-career salaries – all of which can make saving feel harder.
Ages 35-44: Peak Expense Years
According to Vanguard, the median balance in this age group is $39,958, yet the average is much higher at $103,552.[1]
This group often faces their highest household expenses: Childcare, mortgages, career changes.
Despite this being critical years for building momentum, investors often have trouble staying on track to save due to competing priorities.
Yet this is a critical decade for building momentum.
Ages 45-54: Critical Catch-Up Window
Vanguard shows balances rising sharply here, with an average of $188,643 and a median of $67,796.[1]
This age group typically reaches peak earnings, which makes it a prime time to accelerate retirement contributions.
Ages 55-64: Countdown to Retirement
As workers approach retirement, contribution rates rise significantly.
Vanguard shows this group with an average balance of $271,320 and a median of $95,642, reflecting decades of saving plus catch-up contributions.
While balances are higher, Vanguard data also shows many savers fall short of recommended targets – making these years critical for closing the gap before withdrawals begin.[1]
Ages 65+: Nearing Withdrawals
This is a savings peak for most Americans, with Vanguard reporting an average balance of $299,442.
However, the median remains just $95,425, showing that while some retirees are well-prepared, many face retirement with far less than they expected.[1]
[See also: Think Social Security Will Cover Retirement? Think Again.]
401(k) Savings Rates by Age
Vanguard’s How America Saves 2025 report also provides one of the clearest pictures of how much workers actually contribute to their 401(k)s.
These savings rates represent employee-elective deferrals only (before any employer match).
Average Employee 401(k) Contribution Rates by Age
- Under 25: 5.5% of pay
- Ages 25-34: 6.8% of pay
- Ages 35-44: 7.3% of pay
- Ages 45-54: 7.9% of pay
- Ages 55-64: 9.3% of pay
- Age 65+: 10.1% of pay[1]
These numbers reflect a clear trend: Workers tend to contribute more as they advance in their careers, earn higher incomes, and become more focused on retirement preparedness.
How to Increase Your Retirement Savings
The good news? A few small moves – repeated consistently – may transform your retirement outlook.
Here are the biggest levers you can pull to grow your 401(k) faster.
1. Increase Contributions Each Year
A simple 1% boost annually may make a huge difference over time. Most investors barely feel the change in their paycheck, but the long-term impact is massive.
2. Maximize Your Employer Match
If your employer matches 50% of the first 6% you contribute, putting in anything less than 6% is leaving free money on the table. At the least, try and get the company match.
3. Use Catch-Up Contributions (Age 50+)
Catch-up contributions for workers age 50 and above in 2026 are $8,000 (up from $7,500 in 2025). The IRS allows you to contribute a total of $32,500 in 2026.
Don’t forget the super catch-up contribution for those ages 60, 61, 62, and 63. In 2025 and 2026, it’s $11,250. This means you can contribute a total of $35,750 in 2026.[2]
4. Rebalance Your Account
Don’t set your investments and forget them. From time to time, you should rebalance your 401(k) to help keep your investments aligned with your financial goals, risk tolerance, and time horizon – even as market conditions or life circumstances change.
5. Avoid Loans and Hardship Withdrawals
Money pulled from your 401(k) now costs you growth later and may set your plan back years.
[See also: How a 401(k) Loan Could Derail Your Retirement Goals]
Key Takeaways
- 401(k) balances vary widely by age, with the median balance showing the most accurate picture of what typical savers have…and it’s far lower than the average.
- Vanguard’s data shows a large gap between average and median balances ($148,153 vs. $38,176), driven by a small number of very large accounts
- Median 401(k) balances grow with age from $1,948 under 25 to $95,642 by ages 55-64. However, many savers still fall short of recommended retirement targets.
- Savings rates increase steadily with age, rising from 5.5% of pay for workers under 25 to over 9-10% for workers age 55 and older.
- Small, consistent steps such as increasing contributions, capturing the full employer match, using catch-up contributions, rebalancing, and avoiding withdrawals may help improve long-term retirement readiness.
Sources
[1] Vanguard. How America Saves 2025. Published 2025.
[2] Internal Revenue Service (IRS). 401(k) Limit Increases to $24,500 for 2026; IRA Limit Increases to $7,500.
IRS News Release, Notice 2025-67, published November 13, 2025.
https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
