Investing in a 401(k) is one of the simplest and most effective ways to save for retirement, but it can be tough to know whether your savings are enough.
Everyone's retirement goals will be different, so how much you should save may differ from what others your age are stashing away. That said, it can sometimes be helpful to see how much the typical worker has in their 401(k), if for no other reason than to satisfy curiosity. Here's what the average balance looks like across all age groups.
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The average 401(k) balance by age
Every year, Vanguard publishes a report detailing its participants' saving habits, including the average and median 401(k) balances for those contributing to a Vanguard account.
The most recent report, released in 2025, shows vast differences between the average and median balances. Because the average can be skewed by extremely high earners, the median is often more representative of the typical person.
| Age Group | Average 401(k) Balance | Median 401(k) Balance |
|---|---|---|
| Under 25 | $6,899 | $1,948 |
| 25 to 34 | $42,640 | $16,255 |
| 35 to 44 | $103,552 | $39,958 |
| 45 to 54 | $188,643 | $67,796 |
| 55 to 64 | $271,320 | $95,642 |
| 65 and older | $299,442 | $95,425 |
Source: Vanguard. Table by author.
If your account balance falls behind that of others your age, that's OK. Again, everyone's retirement needs will differ, so these figures aren't necessarily goals you should be trying to achieve. Rather, the average and median balances can help provide a snapshot of where most workers stand on savings.
How much should you save for retirement?
A general rule of thumb suggested by financial planners is to save enough to cover around 80% of your pre-retirement income. So, for example, if you spend $100,000 per year now, you might expect to spend $80,000 per year in retirement.
Of course, that number can vary widely based on factors like the cost of living in your area and the lifestyle you'd like to enjoy, so you may need to adjust your estimate accordingly. If you have reason to believe you might live a much longer-than-average lifespan, you may need additional cushion in your nest egg to account for more years in retirement.
You'll also need to consider other sources of income, like Social Security benefits. You can see an estimate of your future benefit amount by reviewing your statements in your mySocialSecurity account online, but the average retiree collects about $2,071 per month in benefits, according to December 2025 data from the Social Security Administration.
Your retirement journey is unique, so your savings goals may differ from those of your peers, and that's OK. While it can be helpful to see where the average American stands on savings, it's far more beneficial to calculate your own goals to ensure you're set up for long-term financial success.
