Are You Feeling Ahead or Behind with Your 401(k) Savings?

Jeremy Keil examines Fidelity’s research on retirement savings averages for 2025.

When it comes to retirement, one of the most common questions I hear is: “How do I know if I’m on track?” And that’s a great question! After all, you’ve been working hard, saving diligently, and now you’re wondering—is it enough?

In this YouTube video I created on the Mr. Retirement channel, we took a deep dive into Fidelity’s 2024 Retirement Analysis, and I broke down exactly how much people have saved in their 401(k)s—by age, generation, and years of participation. 

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What’s the Average 401(k) Balance?*

Fidelity’s latest report explores data from millions of 401(k) and IRA accounts, it gives us a clear snapshot of where Americans stand when it comes to retirement savings.

As of December 31, 2024, the average 401(k) balance across all age groups is $131,700.

Sounds decent, right? But that average includes everyone—from people who just opened their 401(k)s to folks who’ve been contributing for decades. That’s why it’s much more helpful to break the data down by age and generation.

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401(k) Savings by Age**

Let’s look at those nearing or in retirement—the folks in their 50s, 60s, and beyond. Surprisingly, the average balance doesn’t change all that much from your early 60s into your 70s:

• Ages 55–59: $250,000 (approx.)
  
• Ages 60–64: $250,000
  
• Ages 65–69: $250,000
  
• Ages 70+: $250,000
  

Why the plateau? Two possible reasons:

1. Many retirees begin withdrawing from their 401(k)s around this time.
   
2. Some aim to keep their nest egg stable, living off the interest, dividends, and market growth.
   

If you’re approaching retirement and your savings aren’t quite at the average, don’t panic. Everyone’s journey is different, and there are still smart strategies you can apply.

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401(k) Savings by Generation***

When you look at savings by generation, things get even more interesting:

• Baby Boomers (61–79): Average balance is $257,000
  
  • Average employee contribution: 12%
    
  • Employer match: 5%
    
  • Roth 401(k) participation: 12.2%
    
• Gen X (45–60): Average balance is $192,300
  • Average employee contribution: 10.2%
    
  • Employer match: 5%
    
  • Roth 401(k) participation: 14.5%
    
• Millennials (29–44): Average balance is $67,300
  
  • Average employee contribution: 8.7%
    
  • Employer match: 4.6%
    
  • Roth 401(k) participation: 18.3%
    

If you’re wondering whether you should use a Roth 401(k), here’s something to think about: many retirees are finding themselves with large pre-tax IRA balances and are now concerned about taxes. Roth accounts offer tax-free income in retirement, which can make an impact when managing your tax bracket and Medicare premiums.

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Time in the Market Matters****

One of the most compelling data points Fidelity shared is how balances change based on years of participation:

• 5 years: $350,000
  
• 10 years: $450,000
  
• 15+ years: $550,000
  

This tells me two things in my opinion:

1. The longer you stay invested, the greater your opportunity for growth.
   
2. Consistency wins over flashy returns.
   

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So, Are You Ahead or Behind?

It’s tempting to compare yourself to the average. But remember, the average doesn’t pay your bills—you do. Instead of focusing on what others are doing, focus on what you can do next.

If you’re looking for a roadmap, I’ve created a helpful video series that walks through my Five Step Retirement Plan. You can find it at FiveStepRetirementPlan.com. It’s designed to help you answer questions like:

• How much income do I need in retirement?
  
• What are my tax strategies?
  
• How can I avoid costly mistakes?
  

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Final Thoughts

Whether you’re ahead of the average or feel like you’ve got some catching up to do, the key is to stay informed and take action. If you want to get a clearer picture of how you’re doing, don’t hesitate to connect with us at KeilFP.com. We help people just like you turn their retirement savings into retirement income.

Now it’s your turn:
✅ How do your numbers compare?
✅ Are you making the most of your 401(k) options?
✅ Do you know your next step?

Let’s find out—together.

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