You're Ahead Of Most Millennials If Your Retirement Portfolio Is This Size

Despite the fact that many millennials believe they are starting from behind –- especially when it comes to retirement – this hasn't stopped them from saving. While millennials have faced unique and seemingly never-ending 'unprecedented' economic issues, many have made noticeable gains in terms of wealth over the last few years, even while valuing their time more than other generations. This trend, in theory, should continue as the oldest millennials enter what are known as peak earning years, which generally occur between ages 45 and 54. With that in mind, it could be a good time to take a closer look at retirement savings.

According to a Q4 2025 report from Fidelity, millennials (those born between 1981–1996) had an average 401(k) balance of $83,700 and an average IRA balance of $29,400. For comparison the average 401(k) balance across Baby boomers, Gen X, Millennials, and Gen Z was $146,400 and the average IRA balance was $137,900. While some of this has to do with the fact that older generations have simply had more time to contribute to their retirement accounts, it is also a reflection of the financial toll the economy has had on younger generations and the unique circumstances that have kept younger generations from saving in the same ways previous generations did –- let alone raking in any wealth.

From astronomical housing prices to the burden of student loan debt -– with over 60% of millennials ranking student loan debt as their top financial priority, ahead of saving for retirement, per Transmerica Institute –- many millennials have struggled to save for retirement in the ways they may have wanted to. In fact, according to a 2025 Advisor Authority study, 58% of millennials reported feeling like they had to choose between homeownership and retirement. In that same study, 35% reported that rising housing costs were one of the biggest barriers to their retirement readiness. Another 29% cited market volatility and economic uncertainty, while 23% listed escalating healthcare and insurance costs. All of this is to say, many millennials are feeling financially stretched and in multiple directions which can, and is, affecting overall retirement savings.

As Brett House, an economics professor at Columbia Business School, explained to CNBC, "It's harder for every generation to feel financially comfortable when the management of so much risk related to employment, healthcare, retirement pensions, insurance, and other components of economic well-being has been shifted to individuals during a period of rapidly rising prices." With that said, Fidelity also found that millennials have just an 8.9% savings rate, as of Q4 2025, which is less than Gen X at 10.4% and Baby boomers at 12.4%. Meanwhile, experts largely recommend a 15% annual savings rate for retirement.