Wondering how your retirement savings compare to others your age? You’re definitely not alone.
Many people feel unsure about whether they’re saving enough for retirement. Looking at average savings by age and generation can give you a helpful benchmark—and some tips to boost your savings if needed.
How Much Are People Saving for Retirement?
Let’s start with some numbers from Fidelity’s latest data. Keep in mind, these averages mainly look at 401(k) and IRA balances, so they don’t include other savings like real estate or brokerage accounts. Still, they give a pretty good snapshot.
If you’re in your early 20s, the average 401(k) balance is around $7,300.
By your late 20s, it jumps to about $24,000.
In your 30s, it’s roughly $45,700.
For those in their 40s, the average is over $100,000.
And by the time you hit your 50s and 60s, averages range from about $200,000 to $250,000.
So, if you’re wondering how you stack up, these figures can help you get a rough idea.
What About Different Generations?
It’s no surprise that older generations have saved more, since they’ve had more time to build their nest eggs. Here’s a quick look at the average 401(k) and IRA balances by generation:
| Generation | Avg. 401(k) Balance | Avg. IRA Balance | Employee Contribution | Employer Contribution | Roth 401(k) Participation | Target Date Fund Use |
| Baby Boomers | $249,300 | $257,002 | 11.9% | 5.0% | 12.2% | 44.2% |
| Gen X | $192,300 | $103,952 | 10.2% | 5.0% | 14.5% | 54.0% |
| Millennials | $67,300 | $25,109 | 8.7% | 4.6% | 18.3% | 70.1% |
| Gen Z | $13,500 | $6,672 | 7.2% | 3.7% | 18.2% | 81.5% |
Younger generations tend to contribute a bit less and have smaller balances, but many are investing heavily in target date funds, which automatically adjust your investment mix as you get closer to retirement.
Why Consistency Matters
One key to building a solid retirement fund is sticking with your plan over the long haul. People who contribute steadily to their workplace retirement plans for years tend to do better. If you switch jobs, try to keep your savings rate at least as high as before. If you can’t right away, set a reminder to revisit your savings rate soon.
Tips to Boost Your Retirement Savings
If you feel like you’re behind in where you should be, keep in mind that saving for retirement is a marathon, not a sprint.
Here are some tips to help you get on track:
- Aim to save about 15% of your pre-tax income each year. This includes what you put in your 401(k), IRA, and any employer match.
- Invest with growth in mind. You want your money to grow faster than inflation, so consider a diversified mix of investments appropriate for your age.
- Try to save about 10 times your annual income by age 67. If you want to retire earlier, you’ll need to save even more.
- Balance saving in both a 401(k) and an IRA. After you max out any employer match in your 401(k), think about whether you want to save more in your 401(k) or an IRA. Each has its perks—401(k)s usually let you save more and get employer matches, while IRAs offer more investment options.
- Increase your savings rate whenever you can. Even small boosts add up over time. Once you hit 50, you can make catch-up contributions to save extra.
A Roth IRA is a smart way to hedge against future tax increases, enjoy tax-free growth, and keep your retirement savings flexible and accessible.
These are just guidelines, not strict rules. So even if you don’t hit the exact targets, having some savings is always better than none. So, take a moment to check where you’re at, maybe tweak your savings plan a bit and make a plan that fits your goals and lifestyle.
Are you ready to retire with confidence?
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