Average 401k Balances by Age Group
The latest available data from Fidelity Investments shows that the average 401k balance varies significantly by age. For workers under 25, the average balance is around $6,000, while those aged 25 to 34 have an average of approximately $30,000. Workers aged 35 to 44 typically hold an average of $80,000, and those 45 to 54 have an average balance near $150,000. For individuals aged 55 to 64, the average 401k balance rises to roughly $250,000, and those 65 and older average about $280,000. These figures reflect the cumulative effect of contributions, employer matches, and market returns over time. For more detailed breakdowns, see the latest reports from Fidelity here.
Median balances are often lower than averages because high savers skew the mean upward. The median 401k balance for workers under 25 is roughly $1,500, while for those aged 25 to 34 it is around $10,000. For ages 35 to 44, the median is approximately $35,000, and for ages 45 to 54 it is about $75,000. Workers aged 55 to 64 have a median balance near $130,000, and those 65 and older average a median of roughly $150,000. Comparing median and average figures helps savers understand where they stand relative to their peers. Additional benchmarks are available from the Employee Benefit Research Institute here.
Factors That Influence 401k Balances by Age
Contribution Limits and Catch-Up Rules
The IRS sets annual contribution limits that directly affect how quickly balances grow. In 2024, the elective deferral limit is $23,000, and workers aged 50 and older can contribute an additional $7,500 as a catch-up contribution. This means older workers can save up to $30,500 per year in a 401k plan. Consistent contributions at or near the limit are a primary driver of higher balances in later age groups. The SEC provides official guidance on retirement plan limits here.
Employer Match and Vesting Schedules
Employer matching contributions can significantly accelerate balance growth, especially for workers in their 30s and 40s. Many companies match a percentage of employee contributions, often 50 cents to $1 per dollar on the first 6 percent of pay. Vesting schedules determine when the matched funds become fully owned by the employee, with some employers requiring several years of service. Workers who stay with a company long enough to become fully vested can see their average 401k balance increase substantially by age 45 and beyond. Details on common employer match practices are available from Forbes here.
How to Compare Your 401k Balance to Age Benchmarks
To benchmark your savings, compare your balance to the average and median figures for your age group. A common guideline is to have