Saving money in a 401(k) plan is one the best things you can do for your retirement.
It's true that many retired workers are eligible for Social Security. But those monthly benefits will only replace a limited portion of your paycheck.
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The average retired worker benefit today is only a little more than $2,000. And while there are steps you can take to boost your benefits, like delaying your Social Security claim past full retirement age, it's important to have outside income to ensure that you're able to pay your bills as a retiree. That's where your savings come in.
Fidelity recently released data on 401(k) savings. And the good news is that the average balance increased during the third quarter of 2025. But the average balance on a whole may surprise you -- either in a good way or a bad way.
What the average 401(k) balance looks like today
The average 401(k) balance as of 2025's third quarter is $144,400, according to Fidelity. That's up 5% from the second quarter of 2025. It's also an impressive 9% increase from 2024's third quarter.
Now a big reason why 401(k) plan balances increased so much in that relatively short period of time likely has to do with stock market gains. It's also worth noting that IRA balances were up comparably during the same timeframe.
But as far as that average 401(k) balance goes, if yours is similar, it could be a good thing or a bad thing, depending on how old you are.
If you're in your mid-30s with $144,400 saved for retirement, you're probably in pretty good shape. You should of course continue to fund your 401(k) so it grows substantially in time for retirement.
But let's say you have $144,400 saved so far and you contribute $400 a month to your 401(k) for an additional 30 years. If your investments give you an 8% yearly return, which is a bit below the stock market's average, you could end up with roughly $2 million in total retirement savings.
On the other hand, if you're in your mid-50s with $144,400 saved, you're in a different situation. It's not a hopeless one, but you may need to do some catching up. If that's your balance at 55 and you save $400 a month for 10 more years at an annual 8% return, you'll be looking at a total balance of about $381,000.
That's still a very nice amount of money. But it's nowhere close to $2 million.
How to boost your 401(k) savings
If your 401(k) balance isn't where you want it to be, there may be some steps you can take to increase it.
Start by making sure you're claiming your employer match in full. It may be that your company's matching program has changed since you first signed up for your 401(k). Get all of the details so you don't miss out.
Next, take a close look at your budget and make sure you aren't spending money on things you can do without. That's money that could go into your 401(k) instead.
If you're spending very carefully and feel you're behind on savings, you may need to turn to the gig economy for extra income. If you can earn a few hundred dollar more per month, that's extra money that can go into your retirement savings.
And while it's not an easy thing to hold down a full-time job and moonlight on the side, if you don't manage to save enough for retirement, you might have to work during retirement. That's not a bad thing if you're up for it physically and it's something you want to do. But if that's not the case and your savings are inadequate, you may not have a choice.
It's encouraging to see that 401(k) balances seem to be on the rise. But if you're not happy with yours, take steps to boost your savings rate so you're able to set yourself up with a lot more retirement income.
