While the youngest millennials today are roughly 30 years old, older millennials may be well into their 40s. And when you're in your 40s -- especially your mid-40s -- it's time to get serious about retirement savings.
As of 2025's third quarter, the average millennial's 401(k) balance was $80,700, according to Fidelity. Is that a strong number? Well, it depends.
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For a younger millennial in their early 30s, $80,700 is a respectable sum of money. For someone who's 45, it could mean there's work to do.
But thankfully, even older millennials have plenty of time to build savings until their careers end, generally speaking. So if you're not super thrilled with your 401(k) plan balance, here are some steps you can take to boost it over the next few decades.
1. Capture your employer match in full
The nice thing about 401(k)s is that many come with a workplace match. Find out what that match entails every year, and do your best not to give so much as a dollar of it up.
Remember, when you give up a portion of your employer match, you don't just lose out on the principal amount. You also take away the opportunity to invest that money and grow it into a larger sum.
2. Invest efficiently
When you don't choose investments for a 401(k), that money tends to land in a target date fund. That's not a totally terrible thing, since target date funds adjust your risk profile based on where you are in your retirement savings journey, making things simple and seamless.
The problem with target date funds is that they tend to both invest too conservatively and charge high fees that can eat away at your returns over time. A better bet may be to load up on broad market index funds in your 401(k), which may offer superior returns and lower fees (known as expense ratios).
3. Don't fall victim to lifestyle creep
Whether you're a younger millennial or an older one, you may be headed into your peak earning years. And as your paycheck rises, it's natural to want to buy yourself some of the luxuries you didn't have before, like a larger house and a nicer car.
But if you keep increasing your spending as your income rises, you may not get ahead on the savings front. So a better bet is to prioritize one or two indulgences as your earnings increase, but only after you've increased your savings rate.
In fact, a good bet is to send a large portion of your raise (or, better yet, your whole raise) into your 401(k) at the start of each year. That way, you'll be boosting your savings rate before you get a chance to spend your extra earnings.
A larger 401(k) balance may be within reach
The average $80,700 balance in millennials' 401(k)s may be higher or lower than your balance. And your balance may or may not be a problem, depending on where you are in your savings journey.
But no matter how your 401(k) balance compares, the above steps apply. And if you follow them, you can boost your retirement savings nicely and set yourself up for a very comfortable lifestyle down the line.
