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Every year, some 401(k) holders at Fidelity hit millionaire status. Not one of them? You’re not alone: A seven-figure 401(k) balance is the exception, not the rule.
According to Fidelity's Building Financial Futures report, $125,900 was the average 401(k) balance of23.9 million Fidelity plan participants in the first quarter of 2024. That balance is up 5% from the fourth quarter of 2023 and the highest balances have been since the fourth quarter of 2021, Fidelity said.
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If that balance seems high, consider that averages tend to be skewed by outliers, and in this case, that number is being propped up by those rare millionaires.
Knowing the average balance probably won’t offer you much actionable information. Answering the question of "How much should I have in my 401(k)?" is dependent on factors such as when you want to retire and how much you think you'll need.
» Calculate your future balance with our free 401(k) calculator
Average 401(k) balance by age
According to Fidelity's data, here is the average 401(k) balance by age.
Age | Average 401(k) account balance |
|---|---|
Gen Z(born 1997-2012) | $11,300. |
Millennials(born 1981–1996) | $59,800. |
Gen X(born 1965-1980) | $178,500. |
Boomers(born 1946–1964) | $241,200. |
» Learn more: How much should I contribute to my 401(k)?
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Average 401(k) contribution rates
The IRS sets contribution limits for 401(k) accounts, or the maximum amount you can add to your account in a given year. Those contribution limits are $23,000 in 2024 ($30,500 for those age 50 or older).
In the first quarter of 2024, the average contribution rate among Fidelity plan participants was 14.2%, including employer matches .
Most people don't contribute the max. According to Fidelity, in the first quarter of 2024, the average contribution was $2,840.
If you want to beef up your balance, one way to do it is to contribute at least enough to get the employer match if there's one offered. More than 85% of Fidelity's plan participants got an employer contribution.
In the first quarter of 2024, Gen Z plan participants contributed an average 7.1% of their pay to a 401(k). Millennials contributed 8.6%, Gen Z contributed 10.1% and Baby Boomers contributed 11.8% on average.
Average employee contribution: 9.4% of pay.
Average 401(k) match
The most common match formula is 50 cents to $1 for every dollar an employee contributes up to a certain percentage.
Average employer contribution: 4.8%
Now, let's get back to the balances. The below numbers show how 401(k) balances increase with age, at least until participants start drawing on their money in retirement.
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Gen Z (27 and younger)
Average 401(k) balance: $11,300.
Many of the participants in this age group are new to working and new to saving for retirement. Yet even at this age, it’s a good rule of thumb to prioritize contributing to your workplace retirement plan, especially if your employer matches a portion of your contributions.
These numbers don’t reflect what younger investors may have saved elsewhere, in taxable brokerage accounts, or individual retirement accounts, such as Roth or traditional IRAs.
» Learn more: IRA vs. 401(k)
Millennials (28-43)
Average 401(k) balance: $59,800
At this point, whether measured by the average or the median, participants have increased their balances quite a bit.
As people age and spend more time in the workforce, they’re more likely to hold more than one 401(k), especially if they’ve changed jobs without rolling over or combining accounts.
» Need to simplify? Here’s how to roll over an old 401(k)
Gen X (44-59)
Average 401(k) balance: $178,500
Another solid jump by this age range, with both figures more than doubling — the last time we’ll see a percentage jump that large between age ranges. That’s likely at least partially a product of peak earning years. According to compensation research company Payscale, women hit their peak earnings on average at age 44. For men, that age is 55.
Boomers (60-78)
Average 401(k) balance: $241,200
This group has hit the age at which catch-up contributions are allowed by the IRS: Participants age 50 and older can contribute up to $8,000 in 2024. That can be helpful for those feeling behind at this point, assuming that extra cash is available to put toward retirement.
After this age group, 401(k) balances can begin to fall, or at least grow at a slower pace, as even more people start tapping their accounts.
What you can learn from the average 401(k) balance
Again: not much. This is a fairly arbitrary benchmark. In the aggregate, it can speak to how workers in general are doing when it comes to saving for retirement, but it does little to help you analyze your own situation. It’s also limited to people who have a defined contribution plan at work; not everyone does.
A better approach to benchmarking your efforts: A retirement calculator, which will give you a more personalized recommendation for how much you’ll need at the end of the line. (If you don't think you're saving enough, you might find our guide to retirement planning helpful.)
Finally, it’s worth noting that you may or may not want to put all your retirement eggs into a 401(k) basket. Should you max out your 401(k)? Maybe. But it isn't the best choice for everyone.
Once you’ve earned your employer match, there can be benefits to spreading your money around among other retirement accounts, such as an IRA. » Ready to get started? Read our full guide to opening an IRA
