401K savings by age is based on cumulative balance, not annual contribution. Discover what’s average, what’s ideal, and how to plan better for retirement.
401K Average Savings Is Cumulative, Not Annual
The average 401K savings per age group includes total balance — employee contributions, employer match, and investment returns. It's not what you save yearly.
401K Average Balance by Age
- Early 20s: $4,400
- 25–34: $22,187
- 35–44: $60,528
- 45–54: $116,192
- 55–64: $177,805
- Early 60s: $195,200
Recommended Retirement Savings Targets
- By age 30: 1x your salary
- By age 40: 3x your salary
- By age 50: 6x your salary
- By age 60: 8–10x your salary
Note: “X times your salary” means your salary at that age. E.g., age 50 with $300K salary = $1.8M retirement target.
Real Gap Between Averages and Targets
| Age | Target (Based on $300K) | Actual Average |
|---|---|---|
| 50 | $1,800,000 | $116,192 |
| 60 | $2.4M–$3M | $195,200 |
Why Are Retirement Savings So Low?
- Late start in saving
- Early withdrawals
- Low-income demographics
- Reliance on other asset types (e.g., real estate)
401K Savings Simulation (Starting at Age 23)
| Age | Years Worked | No Growth | 8% Investment Return |
|---|---|---|---|
| 30 | 8 | $144,500 | $201,624 |
| 40 | 18 | $339,500 | $740,379 |
| 50 | 28 | $534,500 | $1,903,511 |
| 65 | 43 | $827,000 | $6,610,084 |
Summary
- 401K average = total balance (not yearly saving)
- Includes employer match and investment returns
- Most people fall short of ideal retirement targets
- Target: 8–10x salary by age 60
- Start early and let compounding work in your favor
