Average 401(k) Balance by Age
Averages tell you where the crowd is, not where you should be. Here are the real numbers by age group, why the median matters more, and the benchmarks planners actually use.
Average 401(k) balances rise with age but are skewed by a few large accounts; medians run much lower. Fidelity benchmarks of 1x salary by 30, 3x by 40, 6x by 50, and 10x by 67 are better personal targets than any average.
Averages vs medians
Published averages look encouraging until you learn the median, the midpoint saver, holds far less. A small number of very large balances pull every average up. For workers in their 30s, the average can be double the median, which means half of savers sit well below the headline number.
Use the median as your peer comparison and the benchmarks below as your target. Beating the average is nice; hitting the benchmark is what funds retirement.
The benchmarks that matter
Fidelity's age-based multiples are the most quoted targets: 1 times salary by 30, 3 times by 40, 6 times by 50, 8 times by 60, and 10 times by 67. A 40-year-old earning $90,000 targets about $270,000 saved.
These assume you keep saving 15 percent and retire near 67. Retiring earlier, saving less, or earning more later all shift the math, which is why a personalized projection beats any rule of thumb.
Behind at your age? The catch-up playbook
First, capture the full employer match today; it is the fastest gap-closer available. Second, raise your contribution 1 to 2 points per year until you hit 20 percent or more. Third, workers 50 and older get IRS catch-up contributions that raise the annual limit.
Fourth, check your investment mix: an overly conservative portfolio in your 40s can cost more than a low contribution rate. Finally, model it. Plug your numbers into the free 401(k) calculator to see exactly what a higher rate buys you by retirement.
Skip the arithmetic
Compare your balance to your target with the free 401(k) calculator.
401(k) balance questions
What is a good 401(k) balance at 40?
Fidelity's benchmark says 3x salary by 40. Reality varies widely: the median 40-something holds far less. If you are behind, the fix is a higher contribution rate now, when compounding still has 25 years to work, not panic later.
Why is the median 401(k) so much lower than the average?
Averages include executives with seven-figure balances built over decades plus rollovers. The median filters that skew out. Neither number is a target; use age-based salary multiples for that.