This Is the Average 401(k) Balance. How Does Yours Compare?

Is your balance more or less than the average?

By Kailey Hagen – Updated Mar 10, 2025 at 11:23 AM

Key Points

Invest early in 401(k) to leverage compound earnings for a substantial retirement fund.
Average 401(k) balances vary by age and income, affecting retirement readiness.
Retirees may face income shortages; increasing 401(k) contributions can help.

It's imperative that you're financially prepared for retirement. Living on Social Security alone is difficult, so you'll want an additional source of income. For most people, that extra money must come from retirement savings.

A 401(k) is a popular retirement investment account used by millions of U.S. workers, in large part because this account offers generous tax advantages. Because it's administered by employers, it's convenient to invest in.

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average-401k-balance-infographic — Image source: The Motley Fool

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If you have access to a workplace 401(k), saving in it early and aggressively could provide a path to a secure retirement. But how have Americans done with investing in their 401(k) accounts? Check out the average 401(k) balance by age and income level to see where you stack up when it comes to your retirement savings.

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The average 401(k) balance by age

Each year, Vanguard collects data from approximately 5 million retirement accounts. Based on its analysis in 2024, the average 401(k) balance was $134,128 in 2023, up about 19% from 2022 but still below the 2021 high of $141,542. However, averages varied substantially by age. The table below shows the average and median balances for individuals in different age groups.

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Data source: How America Saves, Vanguard.

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Table by author.

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While it may be a challenge to save when you're young, it pays to do so.

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The average 401(k) balance by income level

Not surprisingly, income impacts the amount workers invest in their 401(k). The table below shows the average account balance based on income level.

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Table source: How America Saves, Vanguard.

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Table source: How America Saves, Vanguard.

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Can You Have an IRA and a 401(k)?

You can contribute to an IRA even if you also contribute to a 401(k) at work, but you should know the limitations.

Consider These Steps if Your 401(k) Is Losing Value

Four things you can try to get your retirement savings back on track.

How to Roll Over Your 401(k) to an IRA

When and how to roll over your 401(k) to an IRA.

What You Need to Know About 401(k) Overcontributions

What to do if you've overcontributed to your IRA.

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About the Author

Kailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning. Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.

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