As the year draws to a close, it’s time to look back and reflect on what happened in 2025 and what good, and bad, financial decisions were made. Now, a study released by the experts at Fidelity Investments is revealing the average 401(k) balance in each age group in America, so you can see how yours stacks up.
A 401(k) plan, according to Investopedia, is a “workplace retirement plan that allows you to make annual contributions up to a specific limit, investing that money for your later years.” They add that it’s a “company-sponsored retirement account in which employees can contribute a percentage of their income.”
“In most cases, you choose how much money you want to contribute to your 401(k) based on a percentage of your income,” Charles Schwab states. “Your employer will then automatically withhold a portion of each paycheck and puts it into the account, making it easy to regularly contribute to your account.”
Average 401(k) in 2025 for Each Age Group
In a report on the average 401(k) balance in each state, Fidelity Investments notes that “to get a sense for how you’re doing compared to other people, you may want to look at the average retirement savings by age. That way, you can compare your retirement savings with people who have been working and saving for about the same amount of time as you.”
So, let’s get into the numbers. For baby boomers, the average 401(k) balance is $249,300, according to Fidelity, with an average IRA balance of $257,002. For Gen X, the average 401(k) balance is $192,300, and the average IRA balance is $103,952. Millennials currently have an average 401(k) balance of $67,300 and average IRA balance of $25,109. Gen Z has an average 401(k) balance of $13,500 and an average IRA balance of $6,672.
Fidelity also notes that the average savings rate overall for Americans in these retirement plans is 14.1%.
Tips for Retirement Savings
As for retirement tips, Merrill Edge makes the point that the sooner you start saving, the better. “If you’re just beginning to put money away for retirement, start saving as much as you can now,” they note. “That way you let compound interest — the ability of your assets to generate earnings, which are reinvested to generate their own earnings — have an opportunity to work in your favor.”
Vanguard suggests to adjust your investment portfolio as the years go by. “Due to market performance, your initial asset allocation may shift over time,” they note. “Rebalancing your portfolio is the process of realigning the percentage of your investments to maintain your original mix.”
Ameriprise Financial warns against doing emotional investing. “Emotions can cause us to do the opposite of what we should do,” they note. “That’s why regularly investing, and staying invested, over the long-term is a smart approach for most investors.”
