For many Americans, the 401(k) is the cornerstone of their retirement savings strategy. Knowing where your 401(k) balance falls compared to others in your age range can help you determine whether you’re on track, ahead of the curve or falling behind when it comes to preparing for a comfortable and secure retirement. It can also highlight whether you need to adjust your contributions, investment choices or retirement timeline to meet your long-term financial goals. While the average balance can offer insight, it’s not the full picture. Your retirement income needs, lifestyle choices and other savings — like IRAs, pensions or Social Security — will all influence whether your 401(k) savings will be sufficient.
A financial advisor can help you assess your current position, develop a sustainable withdrawal plan and explore strategies to maximize your income throughout retirement.
Average 401(k) Balance for Retirees
The average 401(k) balance for retirees varies significantly by age. Below are the average balances for retirees and those nearing retirement according to recent data from Fidelity Investments:
- Ages 61–79: Average 401(k) balance: $249,300
- Ages 45–60: Average 401(k) balance: $192,300
- Ages 75+: Average retirement account balance: $462,410
- Ages 65–74: Average retirement account balance: $609,230
- Ages 55–64: Average retirement account balance: $537,560
- Ages 45–54: Average retirement account balance: $313,220
As you can see in the figures above, those in the beginning of their retirement, between the ages of 65 and 74, have the largest retirement accounts. As the years go on, and retirees start to draw down the balances in their retirement accounts, those numbers start to diminish. Those aged 75 and older have an average retirement account balance of $462,410 compared to $609,230 for those aged 65 to 74.
Keep in mind, while these figures serve as helpful benchmarks, they aren’t one-size-fits-all. Your ideal retirement savings balance will depend on your anticipated expenses, retirement age, healthcare needs and lifestyle goals.
401(k) Recommendations By Age
- Age 30: 1x your annual salary
- Age 35: 2x your annual salary
- Age 40: 3x your annual salary
- Age 45: 4x your annual salary
- Age 50: 6x your annual salary
- Age 55: 7x your annual salary
- Age 60: 8x your annual salary
- Age 67: 10x your annual salary
For example, if you earn $70,000 a year, Fidelity recommends having $560,000 saved by age 60 and $700,000 by age 67. These recommendations account for maintaining your lifestyle in retirement without relying solely on Social Security.
Keep in mind, these are guidelines, not strict rules. If you plan to retire early, travel frequently or have high healthcare costs, you may need more than the standard 10x salary recommendation. If you retire to a lower-cost location or expect a less indulgent lifestyle, you may need less. A financial advisor can help you refine these numbers based on your personal retirement goals and spending habits.
What Does Your 401(k) Balance Mean?
So what does the average 401(k) balance for retirees actually translate to in terms of retirement income? Let’s use the average balance for those aged 65–74, $609,230, and apply a few different withdrawal strategies:
- Using the 4% Rule: This popular guideline suggests withdrawing 4% of your portfolio in the first year of retirement, adjusting for inflation each year after. With a $609,230 balance, 4% yields about $24,369 annually, or roughly $2,030 per month the first year. This could be a solid supplement to Social Security or other income.
- Required minimum distributions (RMDs): Once you turn 73 (or 75, depending on your birth year), the IRS requires you to begin RMDs from your tax-deferred accounts. For someone with a $609,230 balance at age 73 (which is unlikely, as you’d probably start drawing down the account balance years before you start taking RMDs), the first-year RMD would be around $22,990, based on a life expectancy factor of 26.5.
How long your 401(k) lasts depends on your withdrawal rate, investment performance and whether you adjust for inflation. A well-balanced withdrawal plan — blending dividends, RMDs and perhaps a Roth conversion strategy — can stretch your savings further and help minimize taxes.
Behind on Your 401(k)? How to Catch Up
If your current savings fall short of the average 401(k) balance for retirees, you’re not alone — and it’s not too late to catch up. A few strategic changes can significantly boost your balance in the years leading up to retirement.
- Maximize contributions. For 2025, the 401(k) contribution limit is $23,500 for those under 50. If you’re 50 or older, you can contribute an additional $7,500 in catch-up contributions, bringing your total to $31,000. If you’re currently contributing $15,000 a year, increasing to the full limit over the next 10 years could add more than $160,000 ($31,000-$15,000 = $16,000 x 10) to your 401(k). Those between the ages of 60 and 63 can contribute even more, being eligible for a “super catch-up contribution” of $11,250 a year instead of that $7,500 amount.
- Delay retirement. Working even two or three years longer can have a powerful compounding effect. Not only does it allow more time for contributions and growth, but it also reduces the number of years you’ll need to draw from your savings. Plus, delaying Social Security can result in higher monthly benefits.
- Revisit your investment allocation. Ensure your 401(k) is allocated for growth if retirement is still at least five to 10 years away. While moving to safer assets is prudent as you near retirement, being too conservative too early can limit growth.
Bottom Line
Knowing the average 401(k) balance for retirees can help you understand where you stand, but your personal needs and retirement goals will always matter more than the national averages. Whether you’re ahead of the curve or behind on your savings target, there are actionable steps you can take to strengthen your financial position, especially in the final decade before retirement.
Retirement Planning Tips
- A financial advisor can help you create a retirement plan based on your needs. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- SmartAsset’s Social Security calculator can help you estimate future monthly government benefits.
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