This Was the Average 401(k) Balance Last Year, According to a Recent Vanguard Report. Do Your Savings Stack Up?
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What's remarkable is If you have access to a 401(k) and are regularly contributing, you're already ahead of the game when it comes to retirement planning. A 401(k) is one...
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July 16, 2025
06:00 PM
The Motley Fool
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What's remarkable is If you have access to a 401(k) and are regularly contributing, you're already ahead of the game when it comes to retirement planning
A 401(k) is one of the most powerful retirement tools out there, and it can help supercharge your savings
Furthermore, Moreover, When planning for retirement, everyone's journey will be different
Your savings goals will depend on many factors, such as the cost of living in your area, the number of years you expect to spend in retirement, and the type of lifestyle you want to enjoy
Additionally, Your savings might look wildly different from others your age, and that's OK (noteworthy indeed), in this volatile climate
Moreover, That said, it can sometimes be helpful to see what the average American has stashed in their retirement fund
On the other hand, On the other hand, Here's what the most recent data from Vanguard shows, as well as one simple way to increase your savings, given current economic conditions
Image source: Getty Images, in today's financial world
The average 401(k) balance by age Every year, Vanguard releases its "How America s" report detailing saving habits among Vanguard 401(k) participants
While these figures only account for Vanguard account holders -- not the general population -- they can be helpful to get an idea of where many Americans stand on savings
The most recent report, released in 2025 and based on last year's data, reveals that the average 401(k) balance among all Vanguard participants is $148,153
The evidence shows median, though, is just $38,176
Additionally, Because extremely high-earning outliers may skew the average, the median is often a more accurate representation of the typical person
Broken down by age range, though, the average and median figures differ substantially from the overall average: Age Range Average 401(k) Balance Median 401(k) Balance Under 25 $6,899 $1,948 25 to 34 $42,640 $16,255 35 to 44 $103,552 $39,958 45 to 54 $188,643 $67,796 55 to 64 $271,320 $95,642 65 and older $299,442 $95,425 Data source: Vanguard
Furthermore, Additionally, Again, your individual savings goals will depend on your situation (something worth watching)
However, Meanwhile, So if your 401(k) balance doesn't match up with the average American's, that doesn't necessarily mean you're off track (quite telling)
Rather than relying solely on comparing your balance to the average, it's wise to talk to a retirement planning expert or run your information through a retirement calculator for a savings estimate
Moreover, These tools can give you a rough idea of how much you should aim to based on your unique situation, in today's financial world
On the other hand, The simplest way to boost your 401(k) savings One of the best ways to more in your 401(k) is to take full advantage of the employer match, if your plan offers one (something worth watching)
In contrast, A whopping 86% of Vanguard 401(k) plans offer some type of matching contributions, according to the report, which could boost your savings by thousands of dollars per year with practically zero effort on your part
For example, the median annual income among U (this bears monitoring)
Workers in 2024 was around $60,000 per year, according to the Bureau of Labor Statistics, in light of current trends
Say you're earning $60,000 per year and your employer will match 100% of your contributions up to 3% of your salary -- or $1,800 per year (which is quite significant), in light of current trends
Let's also say that, right now, you're only contributing $1,500 per year while earning the same amount in matching contributions
If you're earning an 8% average annual return on your investments, here's apximately how much more you could earn by increasing your savings to $1,800 per year and earning the full match: Number of Years Total Savings: $1,500 per Year + $1,500 Company Match Total Savings: $1,800 per Year + $1,800 Company Match 20 $137,000 $165,000 25 $219,000 $263,000 30 $340,000 $408,000 35 $517,000 $620,000 40 $777,000 $933,000 Data source: author's calculations via investor
In other words, contributing just $300 more per year -- or $25 per month -- to earn the full employer match could increase your total savings by more than $150,000 over a career
Additionally, In contrast, The company match is essentially free money, and taking full advantage of it can transform your retirement savings, in today's financial world
In your 401(k) is one of the most effective ways to for retirement, and no matter how your balance compares to others, small steps can go a long way
On the other hand, By contributing consistently and taking advantage of perks the company match, you can boost your savings by hundreds of thousands of dollars over time, in light of current trends
In contrast, The Motley Fool has a disclosure policy.
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