401(k) by Age: How Much Should You Have Saved?

401(k) Savings Targets by Age

Fidelity Investments recommends these savings milestones as multiples of your annual salary:

Average vs Median 401(k) Balance: What the Data Shows

When researching 401(k) balances, you'll see two numbers: average and median. The median is the better benchmark - here's why.

Why Averages Mislead

Averages are skewed by outliers. If five people have 401(k) balances of $10,000, $20,000, $30,000, $50,000, and $1,000,000, the average is $222,000 - but four out of five people have far less.

The median (the middle number when sorted) is $30,000 - a much more realistic benchmark for most Americans.

Actual 401(k) Balances by Age

Data from Fidelity's Q4 2024 report and the Federal Reserve Survey of Consumer Finances:

A Reality Check

Only 54.4% of American families have any retirement savings. Among those saving, only 31% feel on track for retirement.

If you have any money in a 401(k), you're already ahead of nearly half of Americans.

401(k) Benchmarks by Decade

Your savings strategy should evolve as you age. Here's a decade-by-decade guide with realistic targets and action plans.

In Your 20s: The Foundation Years

Target: 0.5-1x salary by age 30

Your 20s are the most valuable years for retirement saving - not because you can save the most, but because time is on your side. Money invested at 25 has 40+ years to compound.

What $200/month becomes:

• At 7% return over 40 years: $479,000
• Starting at 35 instead (30 years): $226,000

Starting 10 years earlier more than doubles your outcome.

Action Plan:

1. Get your full employer match - it's free money (typically 3-6% of salary)
2. Aim for 10-15% total savings rate (including employer match)
3. Choose low-cost investments - target date funds or total market index funds
4. Increase contribution by 1% with each raise

In Your 30s: Building Momentum

Target: 1x salary by 35, 2x by 40

Your 30s bring competing priorities: student loans, buying a home, starting a family. Retirement feels distant. Don't let it slip.

Example: 30-year-old with $45,000 saved

Using our 401(k) calculator:

• Current balance: $45,000
• Salary: $75,000
• Contribution: 10%
• Employer match: 50% up to 6%
• Return: 7%
• Years to retirement: 35

Projected balance at 65: $1.4 million

Starting with the average balance at 30 and maintaining consistent contributions leads to millionaire status by retirement.

In Your 40s: Peak Earning Years

Target: 3x salary by 45, 4x by 50

Your 40s are typically your highest-earning years. Time to accelerate savings.

Action Plan:

1. Max out your 401(k) - $24,500 in 2026
2. Audit investment fees - 1% in fees costs hundreds of thousands over time
3. Consolidate old 401(k)s - easier to manage, often lower fees
4. Calculate your target number - how much do you actually need?
5. Consider Roth conversions - could reduce future taxes

In Your 50s: The Catch-Up Decade

Target: 6x salary by 55, 7x by 60

At 50, you unlock catch-up contributions. In 2026, contribute an extra $8,000 beyond the standard $24,500 limit.

Between ages 60-63, the "super catch-up" allows an additional $11,250 per year.

2026 Contribution Limits:

In Your 60s: The Home Stretch

Target: 8x salary by 60, 10x by 67

You're approaching the finish line. Focus shifts from growing wealth to protecting it.

Action Plan:

1. Continue maxing out contributions (super catch-up at 60-63)
2. Reduce stock allocation - target 50-60% stocks, 40-50% bonds
3. Plan withdrawal strategy - which accounts to tap first
4. Understand RMDs - Required Minimum Distributions start at age 73
5. Coordinate Social Security timing - delaying to 70 maximizes benefits
6. Budget for healthcare - Medicare starts at 65 but doesn't cover everything

What If You're Behind? 6 Catch-Up Strategies

Feeling behind? Here's the good news: it's not too late. These proven strategies help you catch up.

1. Increase Contributions by 1% Annually

If you're contributing 6%, bump it to 7% next year, then 8%. Most people don't miss 1% - especially when timed with raises.

Impact: Going from 6% to 15% over 9 years adds hundreds of thousands to your balance.

2. Capture Your Full Employer Match

Not getting the full match? You're leaving free money behind. A 50% match on 6% of salary equals 3% free money every year.

Impact: On a $75,000 salary, that's $2,250/year - which grows to $100,000+ over 25 years.

3. Use Catch-Up Contributions (Age 50+)

Starting at 50, contribute an extra $8,000 annually. Ages 60-63 get $11,250 extra per year.

Impact: 15 years of catch-up contributions at 7% return adds $200,000+ to your balance.

4. Reduce Investment Fees

High fees silently eat returns. A 1% fee difference compounds dramatically over decades.

Impact: Switching from 1% to 0.05% expense ratio on a $300,000 portfolio saves ~$2,850/year.

5. Delay Retirement 1-2 Years

Each additional year working means:

• One more year of contributions and match
• One more year of investment growth
• One fewer year of withdrawals
• Higher Social Security benefits (up to 8% more per year past 62)

Impact: Working two extra years can increase sustainable retirement income by 15-20%.

6. Automate Contribution Increases

Set up automatic annual bumps. Many 401(k) plans let you schedule 1% increases. What you don't see, you don't miss.

How to Calculate Your Personal Target

The salary multiplier benchmarks are guidelines. Your personal target depends on your situation.

The 4% Rule

A common retirement planning rule: withdraw about 4% of your portfolio each year with high probability of not running out over 30 years.

Working backward:

• Want $60,000/year in retirement? You need ~$1.5 million
• Want $80,000/year? You need ~$2 million
• Want $100,000/year? You need ~$2.5 million

Factors That Affect Your Number

You might need MORE if:

• You plan to retire before 65
• You expect higher healthcare costs
• You want to travel extensively
• You don't have a pension

You might need LESS if:

• You'll have a pension
• You plan part-time retirement work
• Your home will be paid off
• You'll relocate to lower cost-of-living area

Frequently Asked Questions

Your Next Steps

Wherever you are on your retirement journey:

In your 20s-30s:

• Start now - time is your biggest advantage
• Get full employer match
• Aim for 10-15% total savings rate
• Choose low-cost index funds

In your 40s:

• Try to max out your 401(k) ($24,500 in 2026)
• Consolidate old retirement accounts
• Audit investment fees
• Calculate your personal target

In your 50s-60s:

• Max out catch-up contributions ($8,000-$11,250 extra)
• Shift toward lower-risk investments
• Coordinate Social Security timing
• Create detailed retirement income plan