I’m often asked, “How am I doing relative to others my age?” when it comes to saving for retirement. It’s a great question, and Fidelity’s Q4 2024 data on 401(k) balances offers fresh insights to help you gauge your progress. Based on 26,700 plans and 24.5 million participants, here’s how average 401(k) balances break down by age as of December 31, 2024.
For those under 25, the average balance is around $2,800, while Gen Z (ages 25–30) averages $16,371. Millennials (ages 30–44) see balances climb to $38,000–$91,000, reflecting career growth and consistent contributions. Gen X (ages 45–54) averages $169,000, with long-term savers (15 years in the same plan) hitting an impressive $557,800. Boomers (ages 55–64) average $245,000, and those over 65 have about $273,000. These numbers highlight the power of time and steady saving—compounding works wonders.
A good rule of thumb is you should save 1x your salary by age 30, 3x by 40, 6x by 50, and 8x by 60 to maintain your lifestyle in retirement. For example, a 40-year-old earning $100,000 should aim for $300,000. If you’re behind, don’t panic—use this as a catalyst to boost contributions, maximize employer matches, and diversify your portfolio to manage market volatility.
Recent surveys paint a stark picture: 60% of Americans feel behind on retirement savings, with 35% of workers significantly behind. Among Baby Boomers, 39% have less than $100,000 saved, and 1 in 5 adults over 50 have no retirement savings, citing daily expenses, debt, and inflation as barriers.
The key takeaways are to 1) start saving early, 2) take advantage of employer match, 3) increase your contribution % annually, and 4) set an appropriate asset allocation and leave it alone.
If you need to review your company retirement plan, contact us at WealthCharterretirement.com.
Source: Fidelity Investments Q4 2024 401(k) Savings Analysis, CNBC Survey, Prudential Financials 2024 Pulse of the American Retiree Survey