As 401(k) contribution limits jump to $24,500 for 2026, a new Empower analysis reveals that while average balances are soaring toward record highs, the “median” reality tells a much different story for the average worker.
Today’s visualization the median or average cumulative value of workplace retirement savings within specific cohorts.
It is a good basis to compare your current savings progress against peers.
TL;DR
- The average 401(k) balance for Americans is $340,364, but it varies significantly by age.
- 401 (k) balances in the 30s and 40s can increase quickly, as most workers double their savings by age 40.
The data used in this article are sourced from Empower’s analysis of average 401(k) balances by age from the Empower Personal Dashboard as of October 2025.
Balance by Age
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Age | Annual Salary ($) | Annual Contribution (15%) |
|---|---|---|---|---|---|---|---|
| 1 | Monica Ebunoluwa | 05/04/2026 05:43 PM | Monica Ebunoluwa | 05/04/2026 05:43 PM | 22 | 67,000 | 10,050 |
| 2 | Monica Ebunoluwa | 05/04/2026 05:43 PM | Monica Ebunoluwa | 05/04/2026 05:43 PM | 23 | 69,010 | 10,352 |
| 3 | Monica Ebunoluwa | 05/04/2026 05:43 PM | Monica Ebunoluwa | 05/04/2026 05:43 PM | 24 | 71,080 | 10,662 |
| 4 | Monica Ebunoluwa | 05/04/2026 05:43 PM | Monica Ebunoluwa | 05/04/2026 05:43 PM | 25 | 73,213 | 10,982 |
| 5 | Monica Ebunoluwa | 05/04/2026 05:43 PM | Monica Ebunoluwa | 05/04/2026 05:43 PM | 26 | 75,409 | 11,311 |
| 6 | Monica Ebunoluwa | 05/04/2026 05:43 PM | Monica Ebunoluwa | 05/04/2026 05:43 PM | 27 | 77,671 | 11,651 |
| 7 | Monica Ebunoluwa | 05/04/2026 05:43 PM | Monica Ebunoluwa | 05/04/2026 05:43 PM | 28 | 80,002 | 12,000 |
| 8 | Monica Ebunoluwa | 05/04/2026 05:43 PM | Monica Ebunoluwa | 05/04/2026 05:43 PM | 29 | 82,402 | 12,360 |
| 9 | Monica Ebunoluwa | 05/04/2026 05:43 PM | Monica Ebunoluwa | 05/04/2026 05:43 PM | 30 | 84,874 | 12,731 |
| 10 | Monica Ebunoluwa | 05/04/2026 05:43 PM | Monica Ebunoluwa | 05/04/2026 05:43 PM | 31 | 87,420 | 13,113 |
The Mid-Life Squeeze (30s & 40s)
In your 30s and 40s, 401(k) balances can increase rapidly, with many workers seeing their savings double by age 40.
This is mostly due to higher incomes and consistent contributions as careers become more stable.
Also, this period is marked by high financial stress.
Things like mortgages, childcare, and family expenses often make it difficult for people to save properly.
Those who keep contributing over these years benefit from compound growth most of the time, building a solid foundation for retirement later on.
The Peak Wealth Decade (50s)
The 50s are often called the “golden window” for retirement savings because 401(k) balances typically reach their highest levels during this decade.
Earnings are often at their peak, debts like mortgages are lower, and many people can save more.
This decade allows catch-up contributions. It lets workers add more money to their 401(k)s. With the years of compound growth, these factors explain why average retirement balances are highest in the 50s.
Average vs. Median
Average 401(k) balances usually look higher than you would expect because they include a small group of very wealthy individuals with very high retirement accounts. These large balances shoot the average upward, making it look like the saver has more money than they actually do.
Median balances have a different story because they show the middle point, i.e., where half of the people have more and half have less. This method better shows the financial reality for most workers and reveals how retirement savings are unevenly distributed.
Source: Empower