Does Your 401(k) Balance Beat the Average?
Does Your 401(k) Balance Beat the Average?
Christy Bieber, The Motley FoolWed, February 25, 2026 at 4:05 PM UTC
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Key Points -
A 401(k) can be one of the best retirement savings accounts.
Your 401(k) balance should increase over time.
If you're behind on 401(k) investing, you should consider increasing your contributions.
The $23,760 Social Security bonus most retirees completely overlook ›
It's crucial that you save money for your retirement. Unfortunately, most people don't have pensions from employers, and Social Security only replaces 40% of pre-retirement income, which is not nearly enough to have a comfortable retirement.
You can save in several different kinds of retirement plans, but a 401(k) is a preferred option for many workers because it's easy to sign up for, and employers often provide matching contributions that help the account grow. Contributing regularly to your 401(k) over your working life can give you a good chance of building security as a senior, and the more you invest, the easier it will be to grow your wealth.
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If you aren't sure how you're doing on your 401(k) investing, it may help to take a look at how your retirement savings compare with your peers. To do that, check out the average 401(k) balances by age to see if you have more or less money saved than your fellow Americans.
Adults looking at financial paperwork.
Image source: Getty Images.
How does your 401(k) balance stack up?
According to data from Empower, here are the average and median 401(k) balances for people within different age ranges.
Age Range
Average 401(k) Balance
Median 401(k) Balance
20s
$116,872
$43,192
30s
$212,356
$78,857
40s
$409,686
$156,675
50s
$629,000
$246,554
60s
$576,755
$187,249
70s
$431,834
$95,931
80s
$429,614
$77,086
Data source: Empower.
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The gap between the median and the average balance exists because people who contribute a lot to their 401(k)s drive up the average balance. Looking at the median balance can give you a better idea of where you stand, although, of course, ideally you'd want to be one of those 401(k) investors who skews the average up because a high 401(k) balance would provide you with much more retirement security.
It's also worth noting, though, that both average and median balances aren't great. If you follow the 4% rule and your 401(k) balance at 70 was about average, your retirement plan would only give you around $17,273.36 in annual income. Even when combined with Social Security, that's not a very generous amount to live on.
How can you increase your 401(k) balance?
If you want a 401(k) that will provide you with plenty of income to enjoy retirement, the best way to grow your balance is to:
Start investing when you are as young as possible.
Invest as much as you can up to contribution limits, or at least enough to earn your full employer match.
Make smart investments with the money in your retirement account so you can benefit from compound growth.
Avoid making early withdrawals or taking loans against your 401(k).
Going through the retirement planning process, including setting clear goals and automating account contributions, can hopefully help you beat these averages so you won't need to worry about how to pay the bills as a retiree.
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