You Might Be Behind On Retirement If You Only Have This 401(k) Balance

Given the current financial pressures plaguing many Americans today –- from increased prices on popular food items to the Iran War leading to an oil crisis -– it's safe to assume that keeping up with your 401(k) balance might not exactly be at the top of your priority list. That said, you might find yourself worrying if you've fallen behind in your savings. While contributing as much as you can reasonably afford every year to your retirement savings is a smart financial decision, it can also be worth taking a look at the average 401(k) balances of others like you. This can help you gauge if, and just how much, your current financial priorities might need to change to better set yourself up for success in your golden years.

According to data from Empower, as of January 2026, the average 401(k) account balance in the U.S. was $340,364. However, before you start to compare your own savings amount to this one, it's important to realize that this number accounts for all age groups -– and it's an average figure instead of a more realistic median. That said, the average account balance fluctuates considerably when broken down by more specific age grounds. While it goes without question that those in their 20s are likely to have a lower 401(k) balance than someone in their 60s, the size of the discrepancies between age groups might surprise you.

It's worth considering just how different the average 401(k) account balance is compared to the median balance. At the younger end of the age groups, per Empower, people in their 20s had an average 401(k) account balance of $116,872 in January 2026 – while the median balance painted a significantly different picture at $43,192. Meanwhile those in their 30s had an average of $212,356, with a median of $78,857 and those in their 40s had an average balance of $409,686, but a median of $156,675. This shows that most people are saving considerably less than the average figure, and it also means you should be slightly wary of any 'average' figures you might see without additional context.

The group with both the largest average and median was, surprisingly, not baby boomers but actually those in their 50s, or Gen Xers. Interestingly Gen X is also the generation that tends to spend the most, yet that doesn't seem to be impacting their retirement savings. Those in their 50s boasted an average 401(k) balance of $629,000, with a median of $246,554. In comparison, those in their 60s (the group with the second highest average and median account balances) had an average of $576,755, with a median of $187,249. Meanwhile those in their 70s had an average balance of $431,834, and a median of $95,931 while those in their 80s had an average of $429,614, and a median balance of $77,086. However it's worth noting that those in these older age groups are more likely to have benefitted from pensions in the workplace and therefore might not have the same reliance on 401(k) accounts.