How much should you have in your 401(k) by age?

Short answer: a common benchmark is 1x your annual salary saved by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. These are guidelines built on saving about 15% of income (including any employer match) from your mid-20s. For 2026 you can contribute up to $24,500 to a 401(k), with an extra $8,000 catch-up if you are 50 or older. The typical balance is far below these targets, so use them as direction, not a verdict.

What are the 401(k) benchmarks by age?

These come from retirement providers' modelling and assume you retire around 67, save roughly 15% a year, invest sensibly, and want to replace about 45% of pre-retirement income from savings (with Social Security covering much of the rest). They count all retirement savings, including IRAs and old 401(k)s, not only your current plan.

Why the average balance looks so much lower

Published averages mix people of all ages, include those who have just started, and are pulled upward by a small number of very large balances. Medians are much lower than averages. Many people also hold money in several places or have changed jobs, leaving small balances behind. Comparing yourself to an average is less useful than comparing yourself to your own target for your own retirement age and lifestyle.

How much should you contribute each year?

• At minimum, enough to get the full employer match. If your employer matches 100% of the first 4% you contribute, anything less leaves guaranteed money behind.
• A common target of 15% of gross income, including the employer match. If you start in your 20s, that is usually enough. Start later and you may need more.
• Raise it by 1% each year or with each raise. Many plans have an auto-escalation setting. You hardly notice it, and it compounds.

For 2026 the employee limit is $24,500. Savers aged 50 and over can add an $8,000 catch-up, and those aged 60 to 63 may have a higher catch-up under a recent rule. Total employee plus employer contributions are capped at a much higher figure. Limits change yearly, so check IRS.gov.

What does consistent saving actually build?

Consider $1,000 a month invested at a hypothetical 7% yearly return. After 20 years that grows to about $521,000. After 30 years it grows to about $1.22 million, on $360,000 of contributions. The extra ten years more than doubles the result, which is why starting early matters more than any single investment choice. The 7% is an assumption for illustration, not a guarantee.

What if you are behind?

Most people are, and it is fixable more often than it feels:

1. Check the match and the investments first. A default cash fund or an expensive fund can quietly drag results for decades.
2. Increase the contribution rate in steps. Even 2 or 3 extra points matter over 15 to 20 years.
3. Use catch-up contributions at 50. They exist for exactly this situation.
4. Work a little longer or delay Social Security. Each year of delay shortens the savings period needed and raises the lifetime benefit. See when to claim Social Security.
5. Cut costs that matter least. Retirement spending, not income, is what you have to fund.

Traditional or Roth 401(k)?

If your plan offers a Roth option, the same logic as a Roth IRA applies: pay tax now at today's rate for tax-free withdrawals later, which tends to favor lower brackets today. Many people split the two. Read our Roth vs Traditional guide for how to decide.

Check yourself against your own plan

Benchmarks are a starting point. Your real number depends on when you want to stop working and how much you will spend. Our retirement number guide walks through it, and the readiness report turns your numbers into a clear yes, no or "close, here is the gap".

General education, not personalized advice. Benchmarks are rules of thumb, and limits change yearly.

Frequently asked questions