You Might Be Wealthier Than You Think If You Have This Number In Your 401(k)

Among the savings tools that workers have available, the 401(k) is perhaps the most versatile. This savings account offers a wealth of investment potential and is generally structured as a workplace perk rather than a tax-advantaged savings tool you'd set up on your own (like an IRA or 529 plan). However, self-employed individuals and freelancers can open their own 401(k) to take advantage of the benefits without a defined workplace program covering them through the usual channels. 401(k) accounts enjoy significantly higher annual contribution caps than IRAs — 2026 figures are $7,500 compared to $24,500 — and can be established in both Roth and traditional treatments, too. The benefits are obvious, but Gallup found in 2025 that roughly 59% of Americans have retirement savings in at least one tax-advantaged account. Capitalize found in 2023 that roughly 20% of Americans have money sitting in a forgotten 401(k) account established while working at a former job. This number has only grown in the years since, with nearly 32 million "forgotten" 401(k) accounts sitting dormant in the background of savers' financial lives as of September 2025.

Saving for retirement takes on many forms, but the 401(k) is a guiding light in this endeavor. It's also a tool that offers free money through employer match perks that average 4.6% of employee salaries. With the value of the 401(k) so clear, it can act as a great barometer for where you stand financially as you continue to age and reassess your savings targets. These are the typical figures for savers in each decile of life, based primarily on Empower Personal Dashboard data from January 2026, although other sources will also come into play.

Those in their 20s don't tend to have as much exposure to savings tools as the older cohort they work with. It's commonly advised to start saving for retirement by the time you turn 25, and this age recommendation lines up with an important age grouping that data is available for. According to data reported by Vanguard in 2025, the average American under 25 has a 401(k) balance of $6,899, with a median figure pegged at $1,948. This is a great start, and it indicates that younger people are indeed beginning their retirement savings journey "on time." This also suggests that young people entering the workforce in earnest are also gaining access to employer perk packages, which are hard to come by or nonexistent in much of the gig-dominated economy that rules the present moment. Statista data shows that Millennials are by far the most likely to participate in the freelancer ecosystems (as of 2023), with 45% of the generation's population working in this capacity. In contrast, Gen Z (those aged between 14 and 29 years old) participate at a 15% rate, although some may be too young to start working.

On another note, Gallup's reporting on retirement savings in 2025 found some notable discrepancies across the age divide. Uptake among those between 18 and 29 lags behind older generations, with over 62% of those in every age bracket over 30 maintaining at least one retirement savings account. In contrast, just 39% of those under the big three-oh have opened one. As such, the results are something of a mixed bag for those in the early stages of their career adventure, but fortunately there's still plenty of time to hop on board.

Vanguard's findings point to substantial growth in both average and median values for workers 25 and up. In the 25 to 34 age range, Vanguard found an average balance of $42,640 and a median savings of $16,255 parks in 401(k) accounts. Empower clients had even more saved in their accounts, with those in their 20s averaging 401(k) balances of $116,872 alongside a median savings figure of $43,192. This is a great start, either way, although if you've saved in this neighborhood while falling within the age range, you'll enjoy a much more stable path forward if you're still near the bottom of the timeline as opposed to the end of the age group.

Some experts suggest using your salary as a yardstick for measuring your savings targets rather than arbitrary numbers. This can be particularly helpful early in your career, since the decades separating your savings from their distribution date can muddy the waters when it comes to determining how much you anticipate needing to comfortably exit the fray. A common early target of roughly matching your salary figure by the time you reach 30 acts as a good starting point. Many early career professionals will find themselves right on track if they are within striking distance of the median figure offered by Empower, and likely significantly ahead of the curve if they're sitting around the average savings.

After reaching 30 (but before 40), Empower reports an average balance of $212,356 and a median 401(k) value of $78,857. Fidelity offers two snapshots of the decade, based on 2024 Q4 account information. Those between 30 and 34 average $45,700 and 35 to 39 year olds have an average of $73,100 saved in their 401(k) accounts. A theme is emerging in the data, suggesting that savers across the consumer landscape exhibit wildly different savings behaviors. Reporting on accounts held with one brokerage firm can be entirely different from that of another. Even so, a trend in the crossover into a person's 30s appears to hold. Regardless of the outlet, account values nearly double in this progression from a saver's 20s into their third decade. This is a healthy sign of growth, certainly, but it also establishes a different pattern that will continue to hold long into the future.

Notably, many of the age ranges leave plenty of leeway for interpolation and guesswork. However, a moderately aggressive investment portfolio should double roughly every seven years, while more conservative approaches require as many as 10. These numbers suggest an even slower pace of growth, which either signals that savers aren't utilizing the appropriate asset allocation framework (such as the 120-minus-age rule) or are slowing their deposit pace and allowing the portfolio to grow mostly on its own.

The trend of slightly stifled growth rates continues into savers' 40s, on average. A refocus of priorities often takes place around the 30-year mark, since this is around the time that the average American will get married, have children, and engage in other important life events. These are all costly endeavors, with the average wedding running a couple $32,000 for a hometown event and $41,000 for international affairs, according to The Knot. The median first-time homebuyer is now 40, however, shifting one big ticket item a bit later and making this another potentially expensive decade of life. But pushing back against lifestyle creep to maintain a focus on savings is essential, even if it's grounded in some crucial milestones that you have dreamed about for many years.

Fidelity's data indicates that 40 to 44 year olds have amassed an average 401(k) balance of $109,100, while those between 45 and 49 have $199,900 saved, on average. Empower clients have notably more socked away, with a median figure for those in their 40s of $156,675 and an average 401(k) balance of $409,686. These numbers still underperform a full doubling, but the average figures see a 92.9% increase from Empower clients in their 30s to their 40s as opposed to an 81.6% jump from those in their 20s to their 30s. Fidelity data shows a 138.7% increase from the 30-34 age range to 40-44, although the ranges skew the numbers a little more.

Those over 50 have the ability to utilize catch up contributions to expand their savings volume. This raises the limit on both IRA and 401(k) accounts, with the latter enjoying an additional $8,000 contribution limit in 2026. This means that individuals nearing their decade of retirement can double down on their savings strategy to better position themselves to hit their goals. Vanguard data shows a major jump from the 45 to 54 age range to the 55 to 64 bracket, potentially indicating that savers are indeed utilizing this critical tool. Average 401(k) balances for those over 45 stand at $188,643 with a median figure of $67,796, while the 55 to 64 bucket rises substantially to a $271,320 average and a median figure of $95,642.

Empower numbers show a modest bump in growth over the previous decade. Those in their 50s average a balance of $629,000 with a median 401(k) balance of $246,554. The average numbers rise by a notable margin higher than $200,000 over the previous decade, while the increase from savers in their 30s to their 40s is boosted by less than this round mark. Fidelity data, on the other hand, exhibits a slowdown in the dual-break age groups for this decade. Clients have average balances of $199,900 in the 50 to 54 age range and $244,900 from 55 to 59. The jump from 45-49 up to the 50-54 bracket is nearly $48,000, while the next age range increases by $45,000, suggesting that Fidelity savers may be largely failing to take advantage of the expanded cap.

Upon reaching your 60s, things begin to change rapidly in the retirement savings strategy department. The average American worker leaves their career behind at 62. With full retirement age (for most) pegged at 67 and the maximum Social Security benefit amount coming for those who wait to start taking checks until they reach 70, most will see their transition from retirement account saver to spender happen in this decade. It's important to understand where you fall personally, and some key indicators can signal that delaying your retirement may be beneficial. However, the numbers are clear, and the early half of a person's 60s hold up as the standard pivot point.

Fidelity savers see a massive slow down in the value increases upon reaching 60, with balances boosting from $244,900 before this age to just $246,500 for those 60 to 64. The 65 to 69 age range sees another increase, but this is similarly miniscule, averaging $251,400. These trends suggest that active savings strategies essentially come to a halt in this decade, but aggressive drawdowns aren't yet in the cards, either. Empower's numbers tell a different story. Savers in their 60s do see a reduction in value, dropping from their peak in the prior decade to a $576,755 average balance and a median figure of $187,249.

At 70, you'll surely be drawing Social Security checks. There's no benefit to waiting beyond this age, so all eligible retirees should turn on the flow of this income stream by 70 at the very latest. Your Traditional IRA and 401(k) accounts see another important milestone in this decade of life, namely the initiation of required minimum distributions (RMDs). This value is calculated based on factors including your life expectancy and the amount you've stored away in accounts that are subject to these distributions. Your Roth accounts are not required to pay out RMDs, for instance.

As a result of this new obligation, retirees across the board must be prepared for the tax liabilities that come with this new distribution schedule. Up to this point, it's possible to avoid taking any money out of accounts that come with a tax hit. But with RMDs active once you reach 73, you'll have to take at least some cash every year out of an account that experiences a taxable event. Utilizing one or more key distribution strategies leading up to this age and beyond can help minimize your tax liability as a retiree. Naturally, Empower clients see another steep decline in balances entering this decade. The average 401(k) account for those in their 70s maintains a balance of $431,834, with a median figure of $95,931. Fidelity clients 70-plus finally see their balance decrease, but only to an average of $250,000, down from a peak that's just $1,400 higher.

The average life expectancy for Americans as of 2024 was 79.0, with a figure of 81.4 for women and 76.5 for men, according to Scientific American. However, the percentage of the U.S. population over 65 has steadily risen through the years with the fastest growth rate from 2010 to 2020 since decade ending in 1890, according to the Census Bureau. In 2022, Social Explorer reported that 1.27 million Americans were over 80, and that in 2020 there was a greater percentage of the population in their eighth decade of life than those older than 75 in 1970. It's a fact that people everywhere are living longer, and therefore need a stronger financial plan to support themselves in retirement than those who came before.

Empower clients over 80 retain strong 401(k) balances in aggregate, signaling good financial stability and even the ability to pass on a potentially significant amount of wealth to their loved ones after passing. Average balances for those in their 80s stand at $429,614, while the median 401(k) value for those 80-plus is $77,086. Of course, anyone with a strong portfolio entering this decade of life will want to start thinking about what they'll do with the remainder of their money. It's entirely reasonable to start splurging on vacations and lifestyle enhancers, but those who will remain steady and leave assets in a 401(k) to spouses or children will need to have a conversation about what that means for anyone named as a beneficiary. Inheriting a 401(k) as a non-spouse comes with certain rules, for instance. But this kind of gift can do wonders for a younger saver's own retirement accounts.