Average 401(k) Balance by Age in 2026: How Do You Compare?

If you’ve checked your 401(k) recently and wondered how it compares nationally, Vanguard’s How America Saves 2026 report offers a concrete starting point. Based on 4.6 million participant accounts, the average 401(k) balance at year-end 2025 was $167,970. The median was $44,115.

Both of those figures are new records. But the average has a way of making most readers feel further behind than they really are. The age-by-age benchmarks shift the picture.

Now in its 25th edition, the report covers data through December 31, 2025 and is the most thorough annual benchmark of 401(k) savings available to the public. What follows is built from it.

What Is the Average 401(k) Balance by Age in 2026?

The overall figures matter less than the breakdown by age. That’s where you can find a meaningful comparison. Here’s the full data:

Age	Average Balance	Median Balance
Under 25	$7,259	$2,234
25–34	$50,261	$18,732
35–44	$120,742	$46,919
45–54	$214,991	$78,730
55–64	$305,006	$107,269
65 and older	$330,186	$103,202
All participants	$167,970	$44,115

Source: Vanguard, How America Saves 2026. Data as of December 31, 2025.

Note that these numbers reflect only what’s held inside a 401(k) plan. IRAs, pensions, home equity, and Social Security aren’t included. 

Vanguard’s scope also skews toward larger employers, so the data doesn’t capture every American 401(k) holder. But it provides a singularly consistent, large-scale snapshot of account balances across employer-sponsored plans. No other source publishes this kind of benchmark annually at this scale.

Why the Average Balance Doesn’t Represent Most Savers

The $167,970 average 401(k) balance reflects roughly the 75th percentile, meaning about three-quarters of participants held less than that amount.

That’s how averages behave when a distribution is skewed. A small number of very large accounts pull the mean well above what a typical account holder carries. Vanguard’s own analysis makes this point: average balances are more representative of participants who are older, longer-tenured, or more affluent.

The median lands at $44,115.

Here’s how the full distribution breaks down:

• 1 in 4 participants had less than $10,000
• 35% had more than $100,000
• 18% had $250,000 or more

For additional context, Fidelity’s Q4 2025 retirement analysis reports an average 401(k) balance of $146,400 and a median of $34,400. Both are well below Vanguard’s figures, but the gap reflects plan composition. Vanguard administers a higher concentration of large-employer plans skewed toward higher-income participants. Fidelity’s broader mix of plan sizes pulls both numbers down. Neither figure is more accurate. They’re snapshots of different cross-sections of the same workforce.

When you compare your balance to the $167,970 figure, you’re measuring yourself against someone in the top quarter of all savers. The median for your age group is the more useful comparison.

If your balance falls below the average but above the median for your age, you’re ahead of more than half your peers. That’s worth knowing before you conclude you’re behind.

How Does Income Affect Your 401(k) Balance?

Income is the single strongest predictor of 401(k) account balance, and the range across earning levels is wide.

Annual Income	Average Balance	Median Balance
Under $15,000	$19,601	$3,489
$15,000–$29,999	$20,146	$6,896
$30,000–$49,999	$29,172	$11,659
$50,000–$74,999	$65,239	$29,033
$75,000–$99,999	$114,670	$56,115
$100,000–$149,999	$198,912	$103,396
$150,000 and above	$401,412	$230,536

Source: Vanguard, How America Saves 2026.

Higher earners simply have more income to save. They’re more likely to work at larger companies with more generous employer match programs. They also tend to stay in those jobs longer, which compounds the effect on their balance.

There’s also a structural layer at the contribution limit level. Workers earning under $100,000 who are 50 or older would need to defer more than 20% of their income just to reach the catch-up contribution threshold. The rules exist for everyone on paper. In practice, they’re out of reach for a lot of people in that income range.

The numbers bear this out. Fewer than 1% of participants earning under $30,000 used catch-up contributions in 2025. Among participants earning $150,000 or more, 52% did.

What Drove 401(k) Balances Higher in 2025?

The record-high 401(k) balances in 2025 were a market story. Savings behavior held steady.

The S&P 500 gained 16% on a price basis over the year. International equities returned roughly 32%. The U.S. bond market returned about 7%. The average one-year participant total return across Vanguard plans was 19.3%.

Among participants who held accounts throughout the full year, the median balance rose 27%. Ninety-four percent saw their balance increase.

One thing worth keeping in mind: a strong market year lifts balances across the board. The balance on any given date reflects where the market happened to be that day. It says nothing about what the account will be worth in 10 or 20 years.

That’s already playing out in early 2026. According to the Investment Company Institute’s Q1 2026 Quarterly Retirement Market Data, total 401(k) assets fell to $9.9 trillion by March 31, down from $10.1 trillion at year-end 2025.

Contributing consistently and leaving the money invested is what’s worth focusing on. Those habits are the part you control.

Are You Saving Enough? What the Data Says About Contribution Rates

Vanguard recommends a total contribution rate of 12% to 15% of income, combining what you put in and what your employer adds, as the target for staying on track toward retirement.

In 2025, 51% of Vanguard participants met that target or hit the statutory maximum, up from 47% in 2021. Roughly half are still below it. Contribution rates stayed flat.

Here’s how contributions broke down in 2025:

• The average employee deferral rate was 7.6%; the median was 6.6%
• Only 14% of participants maxed out: $23,500 for most workers; $31,000 for those 50 and older, and up to $34,750 for workers ages 60 to 63
• Among workers earning $150,000 or more, 51% maxed out; among those earning under $50,000, fewer than 1% did

Catch-up contributions, available to workers 50 and older, were used by 17% of eligible participants. Among eligible participants ages 60 to 63, 19% made any catch-up contributions, but only 9% hit the full $11,250 “super catch-up” limit. For most people in that age range, the structural barriers above apply.

“Clients may ask, ‘What’s my magic number?’ They first need to answer, ‘What am I planning to spend?’ No one knows how long they’re going to live. And then the other complications come in such as inflation and unexpected events during retirement,” notes Bruce Lorenz, CFP® professional and Boldin Advisor. “Balancing all of this with what guaranteed income they will have and where they stand is a worthwhile exercise. Getting a handle on expected spending can go a long way toward answering the question of when you can retire.”

Not sure whether your savings rate hits your retirement income target? That calculation needs to account for Social Security, expected spending, inflation, and taxes. The Boldin Planner lets you model it with your actual numbers.

Record Balances, Record Hardship Withdrawals: The Other Side of the Data

In the same year 401(k) balances hit a record high, the share of Americans tapping their accounts for financial emergencies also reached an all-time high.

Some 6% of Vanguard participants made a hardship withdrawal in 2025. It was the latest jump, from 5% in 2024, 4% in 2023, 3% in 2022, and 2% in 2021. That’s four straight years of increases.

Of those who withdrew, 46% took more than one distribution over the year, with 21% taking three or more.

The median withdrawal amount was $1,900. At that size, a hardship distribution often signals an emergency savings shortfall more than a retirement plan problem. People are using their 401(k) the way a savings account is meant to work.

Workers cited reasons that tell that story:

• 36% used hardship funds to avoid home foreclosure or eviction. 
• 31% covered medical expenses. 
• 13% paid for tuition.
• 11% used the money for home repairs.

Workers earning under $100,000 were 3.5 times more likely to initiate a hardship withdrawal than those above that threshold. Part of what’s driving the trend is administrative. Only 10% of plans now require documentation before approving a hardship withdrawal, down from near-universal requirements in earlier years. Easier access does lead to higher use.

If your 401(k) is serving double duty as your emergency fund, that’s a planning priority worth addressing. Building even a few months of expenses in a separate account changes how you respond to a financial shock. It keeps your 401(k) compounding toward the purpose it was built for.

What Your 401(k) Balance Tells You About Retirement Readiness

A 401(k) balance is a starting point. It becomes useful only when you model it against what you’ll spend.

The median balance for workers ages 55 to 64 is $107,269. Using a 4% annual withdrawal rate as a rough frame, that balance generates about $4,300 per year in portfolio income. Whether that’s enough depends on when you stop working, when you claim Social Security, and what you plan to spend each year. Healthcare costs over time are part of that picture too.

Social Security timing, other savings, your tax situation, and sequence-of-returns risk all shape what you can spend each year. No single number captures all of that.

One finding from Vanguard’s data worth holding onto: 97% of all plan assets available for distribution in 2025 were preserved. Most people who leave a job keep their retirement money invested. That habit, sustained over years, does more for long-term outcomes than any single year’s balance number.

Running your own numbers, with your actual income, savings, spending estimate, and Social Security projection, is what turns a benchmark into a plan. The Boldin Planner is built for that translation: from “here’s what I’ve saved” to “here’s what my retirement looks like.”

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