Average 401(k) balance in your 50s: How do you match up?

Close to two-thirds of U.S. workers have access to a 401(k) or similar employer-sponsored retirement account, according to the U.S. Bureau of Labor Statistics. And with a bullish stock market, disappearing pensions and more companies utilizing automatic enrollment, participation is on the rise.

But how much are Americans putting away?

The average 401(k) balance reached a record $148,153 in 2024, according to data from investment management firm Vanguard. Averages can be skewed by a few high-net-worth investors, though— the median balance was a much more modest $38,176.

401(k)s tend to grow as we mature and earn more, so it's not surprising that older employees have larger balances. For people 45 to 54, the average was $188,642 and the median was $67,796. For workers 45 to 54, the average soared to $271,320 and the median rose to $95,642.

Personal retirement goals vary depending on your cost of living, health care needs, post-work plans and other criteria. According to the Federal Reserve, Americans of retirement age spent an average of $59,616 a year in 2025, or about $5,000 a month. 

It's hard to say if that's the right amount for your lifestyle, though. Many experts recommend saving enough to have 70% to 80% of your current salary available.

If you have access to a 401(k) or other employer-backed plan, here's how to take advantage of it to its fullest extent.

Max out your contributions (if you can)

Experts suggest setting aside 10–15% of your gross income, depending on when you begin contributing. Even 3% is a good start — you can try to increase your contribution 1% every year.

The IRS sets annual limits on how much you can divert to a 401(k). For workers under 50 in 2026, that limit is $24,500.

Take advantage of catch-up contributions

To help older workers make up for years they may not have saved enough, the IRS allows people over 50 to make catch-up contributions beyond the standard limit. In 2026, the 401(k) catch-up contribution limit is $8,000.

For workers age 60-63 whose plan permits it, there is a "super" catch-up contribution limit of $11,250.

Fully utilize your employer match

Most employers will match all or some of their employees' 401(k) contributions. It's about as close to free money as you can get.

Employer matching contributions don't count towards your personal 401(k) deferral limit, though they do count toward the overall 401(k) contribution limit, which is $72,000 in 2026 ($80,000 for workers 50+)

Employer contributions can be a dollar-to-dollar or a partial match—say, 50 cents for every dollar you set aside. Most companies cap how much they'll match: You might put 10% of your paycheck into your 401(k), for example, but your company only matches the first 5%.

IRA: You contribute after-tax money with a Roth IRA, so you won't be taxed when you make withdrawals in retirement and are likely in a higher bracket. Plus, IRAs aren't tied to your employer, so you can keep contributing if you leave your company.

Annuities: An annuity can also provide guaranteed income for life, reassuring people who worry they'll outlive their retirement savings. Annuity sales have soared to a record $461 billion in 2025

Reverse mortgage: If you have substantial home equity and are at least 62, you can apply for a reverse mortgage, is a loan that allows homeowners to access their home equity as a lump sum, in monthly installments, as a line of credit or as a combination of these options. Instead of making monthly payments, you owe the full amount when you move out or die. The lender can foreclose if you don't keep up with maintenance, taxes or insurance, however, and you could saddle your loved ones with a financial headache after you die.

Health Savings Account (HSA): Workers with a high-deductible medical plan can enroll in an HSA to defray medical and over-the-counter expenses. Contributions roll over indefinitely and, after 65, can be used for any reason. The One Big Beautiful Bill expanded eligibility for HSAs, and participation is now on track to increase by 3 to 4 million in 2026, Morningstar reported.

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