How Much Should You Have in Your 401(k) by Age? A Realistic Assessment

Understanding Your Retirement Readiness

Determining whether your 401(k) is on track requires more than gut feeling—it demands comparing your balance against established benchmarks for your age cohort. The 2025 Vanguard How America Saves report provides essential data: those in their early years of work often have modest balances, while accounts grow substantially through midcareer before plateauing at retirement age.

The troubling reality? Many workers at every stage fall short of what they’ll actually need.

What Are the Average 401(k) Balances by Age?

Vanguard’s latest research breaks down both average and median account balances across age ranges:

The gap between average and median is striking—especially in later years. This disparity reveals that wealth concentration skews averages upward, meaning many retirees hold significantly less than the headline figures suggest.

The Income Problem Most Miss

Using the widely-accepted 4% withdrawal rule, a $299,442 balance at retirement generates only $11,977.68 annually. Even supplemented by Social Security, this falls short for most seniors seeking comfortable living standards. This underscores why early, consistent saving is non-negotiable.

Age-Based 401(k) Milestones You Should Hit

Financial advisors recommend these savings targets relative to annual salary to ensure adequate retirement funding:

• By age 30: One year’s salary accumulated
• By age 35: Two times annual salary
• By age 40: Three times annual salary
• By age 45: Four times annual salary
• By age 50: Six times annual salary
• By age 55: Seven times annual salary
• By age 60: Eight times annual salary
• By age 67: Ten times annual salary

If your current balance lags these guidelines, the math isn’t hopeless—but action becomes urgent. Redirecting roughly 15% of gross income toward retirement accounts, combined with employer matching, accelerates compounding and closes the gap faster than you might expect.

Evaluating Your Position

Comparing your 401(k) against peers your age illuminates whether you’re ahead, behind, or aligned with your generation. However, true readiness depends on running your own projections: Will your monthly contributions, combined with investment returns, deliver the corpus you need at 67? Are your target withdrawal rates sustainable?

Most people discover they’re further behind than they realized—but those who make strategic adjustments now still have time to course-correct and retire without financial stress.