How much money Americans in their 30s and 40s have in their 401(k)s—see how you stack up
Americans' 401(k) Balances Soar
Boosted by a strong stock market, Fidelity’s data shows the average 401(k) balance rose 10.5% between March and June, delivering the steepest quarterly gain recorded since 2020.
Average 401(k) Balances by Age Group
The firm broke down the average savings for participants in their 30s and 40s, indicating meaningful progress for those cohorts. Across the board, 401(k) participants are allocating a historically high slice of earnings to retirement, with an average contribution rate of 14.4% of each paycheck—just under Fidelity’s suggested 15% target. More than eight‑in‑ten workers are contributing enough to capture their full employer match, a benefit that mirrors the amount an employee puts in up to a predefined limit.
Retirement Savings Guidelines
Certified financial planner Kevan Melchiorre, co‑founder of Tenet Wealth Partners, stresses that a 401(k) remains a top‑priority retirement vehicle, especially when an employer match is available. Fidelity advises that by age 30 individuals should have saved an amount equal to one year’s salary, and by age 40 they should aim for three times their annual earnings. Those milestones are part of a broader plan to accumulate roughly ten times one’s income by age 67, a level the brokerage believes can sustain a comfortable retirement lifestyle.
Assessing Retirement Readiness
To gauge whether they are on track, workers should look beyond the 401(k) balance and evaluate overall net worth—the sum of assets such as homes, investments and cash, minus liabilities like mortgages and student loans. Adam Vega, a CFP and managing partner at Avance Private Wealth Management, suggests that by age 40 a healthy net‑worth figure should be two to three times a person’s yearly income, and that the trajectory of that number matters as much as its size. He notes that substantial home equity and reduced debt can paint a stronger financial picture than a 401(k) balance alone might indicate.
Retirement Savings Strategies
While 401(k) plans offer distinct benefits—including a 2026 contribution ceiling of $24,500 versus $7,500 for traditional and Roth IRAs—and many employers provide matching contributions, a comprehensive approach remains essential. Melchiorre recommends directing at least 15% of income toward retirement across all accounts, including employer‑sponsored plans. For those whose savings fall short of the suggested benchmarks in their 40s, there is still ample time; most have more than two decades for investments to compound before retirement.
Source: CNBC · 2026-09-03