Average Retirement Account Balance by Age
Recent data from the Federal Reserve's Survey of Consumer Finances and reports by Fidelity Investments show that median retirement account balances vary widely by age. For households headed by adults under 35, the median retirement account balance is below 15,000 dollars, while those aged 55 to 64 often exceed 200,000 dollars. Fidelity's annual analysis of workplace retirement plans, updated for the latest available year, reports that the average 401(k) balance for those in their 60s is roughly 230,000 dollars, and for those in their 30s it is closer to 50,000 dollars. These figures reflect a mix of 401(k), 403(b), and IRA balances reported by participating institutions and do not include pension or Social Security benefits. For a detailed breakdown by age, see the latest data from the Federal Reserve's Survey of Consumer Finances at Federal Reserve Survey of Consumer Finances.
When interpreting these numbers, it is important to distinguish between median and average balances. Averages can be skewed by a small number of very large accounts, so medians often better represent typical savers. The Employee Benefit Research Institute's Retirement Confidence Survey, which uses Census-based data, shows that about 40 percent of workers report having less than 10,000 dollars saved for retirement, while roughly 25 percent have at least 250,000 dollars. Vanguard's annual report on employer-sponsored retirement plans shows that participants who consistently contribute at least 10 percent of pay and stay invested tend to have balances well above these averages by their late 50s. These benchmarks help workers understand where they stand relative to peers at the same age.
Retirement Savings Benchmarks by Age Group
Fidelity's widely cited savings benchmarks suggest that by age 30, you should have roughly your annual salary saved, and by age 40, three times your salary, with the target rising to six times by age 50 and ten times by age 60. These targets assume a consistent savings rate and a mix of stocks and bonds, and they are based on models from Fidelity Investments that project a retirement income replacement rate of about 45 percent of pre-retirement income. The latest updates from Fidelity show that the average 401(k) balance for those in their 20s is around 15,000 dollars, while those in their 50s often exceed 200,000 dollars. For a deeper look at these benchmarks and the underlying methodology, visit the official Fidelity retirement savings guidelines at Fidelity Retirement Savings Guidelines.
The Government Accountability Office has found that many near-retirees have limited savings outside of Social Security. Data from the GAO's analysis of the Survey of Consumer Finances indicates that about 30 percent of households aged 55 and older have no retirement account savings at all. Among those who do, balances are heavily concentrated in 401(k) and IRA accounts, with a smaller share in defined-benefit pensions. The SEC's investor education materials note that early and consistent contributions, combined with compound growth, are the primary drivers of higher balances by age 60. For additional context on retirement account ownership and balances, see the Government Accountability Office's reports on retirement security at GAO Retirement Security Report.
Factors That Influence Retirement Account Balances by Age
Several factors explain why retirement account balances differ so much across age groups, including