The Average 401(k) Balance for a 50-Year-Old May Surprise You. How Do You Compare?

The average 401(k) account balance for people in their 50s ranges from $199,900 to $592,285, depending on which retirement plan provider’s data you look at. While everyone’s income levels, needs, and retirement goals are different, it can be helpful to know these benchmarks and compare them with your own savings to see if you are ahead of or behind other 401(k) plan participants your age.

People in their 50s are generally in the last full decade of work, given that 62 is the average retirement age in the U.S. If you’re concerned about your retirement savings, now is the time to address any gaps between what you have socked away and your expected future needs.

Key Takeaways

• The average 401(k) balance for 50-year-olds provides a helpful benchmark for retirement planning, but the numbers vary by plan provider.
• Your 401(k) balance is influenced by several factors, including market performance, time, discipline, and contribution limits.
• Experts recommend specific savings targets for those in their 50s to ensure retirement readiness.
• If you feel you’re behind on your retirement savings journey, consider catch-up strategies like maxing out contributions or leveraging your home’s equity.

Current Average 401(k) Balances for 50-Year-Olds

The average 401(k) account balance varies significantly both by age and plan provider. Based on the latest available data from three of the largest retirement plan providers in the U.S., here are the average 401(k) account balances for plan participants in their 50s:

• Vanguard, in its How America Saves 2024 report (based on 2023 data), found that plan participants between the ages of 45 and 54 had an average 401(k) balance of $168,646, with a median balance of $60,763. Those in their late 50s to early 60s had somewhat higher balances, with an average of $244,750 and a median account size of $87,571.
• Empower reports that as of January 14, 2025, plan participants between the ages of 50 and 59 had average account balances of $592,285. The median balance was $252,850.
• Fidelity found that participants between 50 and 54 had account balances of $199,900 on average, while participants between 55 and 59 had $244,900. This account data is based on 26,700 plans and 24.5 million plan participants as of December 31, 2024.

Factors Influencing 401(k) Balances

Your 401(k) balance will depend on a number of factors, including:

• Contributions: How much you choose to defer from your paycheck each month will be a major factor in the account’s balance.
• Employer matching: Your employer may match your contributions, usually up to a salary percentage or dollar amount.
• Income: How much you earn will play a role in how much you can comfortably save.
• Time: The sooner you start contributing to your 401(k), the longer it has to grow and compound before retirement.
• Employment history: Periods of unemployment during your career or taking time off to raise children may affect your ability to build your retirement savings.
• Discipline: Making contributions on a regular basis, even if they’re small, can be a more effective method of saving than contributing sporadically. Automatic deferrals from your paycheck can help with this.
• Loans or hardship withdrawals: You may have the opportunity to take a loan or withdrawal from your 401(k) under certain circumstances. Anytime you draw down your account before retirement, you will impact its long-term growth potential.

Aside from how you choose to contribute and withdraw from the account, market conditions, stock performance within the account, and general economic conditions can all play a role in how your account balance grows (or declines) over time. 

Recommended Savings Targets by Age 50

How much you should have saved by age 50 will depend on factors like your financial situation, goals, expected sources of income, and needs in retirement. While everyone’s savings goal will look a little different, there are some general guidelines to consider.

By age 50, Fidelity recommends having roughly six times your current income saved for retirement. By age 55, that number should increase to seven times, and rise to eight times by age 60. T. Rowe Price says that individuals at age 50 should have five times their current income saved for retirement, or seven times by the time they reach age 55.

Strategies for Catching Up on Retirement Savings

According to several recent surveys and studies, there is a discrepancy between how much people have set aside for retirement and how much they think they need to retire comfortably. Vanguard’s How America Saves report found that the average size of a 401(k) across all ages is $134,128. Yet, in a Charles Schwab 401(k) Participant Study, Americans believe they need upwards of $1.8 million saved for retirement.

According to the 2025 Transamerica Retirement Survey, 69% of workers feel they could work right up to retirement and still not have saved enough to meet their needs. If you’re concerned about closing the gap between your existing savings and what you anticipate needing in retirement, here are a few strategies for catching up.

• Max out contributions: One of the simplest ways to boost your retirement savings fast is to increase your 401(k) contributions to the annual limit—including any catch-up contributions you may be eligible for if you’re 50 or older. Start now, and your maxed-out contributions, plus any employer-matching contributions, have the potential to generate tens of thousands in additional retirement income. 
• Increase contributions to other retirement accounts: A 401(k) isn’t your only option for setting aside funds for retirement. An IRA works similarly, allowing you to make tax-deferred contributions up to the annual limit. A Roth IRA is also a great retirement savings tool, enabling participants to grow potentially tax-free income for retirement. If you do pursue a Roth IRA, check income limits, as some high earners are ineligible to participate. You can also grow your taxable brokerage account. This type of account won’t have an annual contribution limit, nor does it limit when participants are able to take withdrawals.
• Consider your home equity options. If you own your home, you could be sitting on a substantial amount of equity (especially given the recent rise in home values). You may want to consider leveraging your home’s equity to support your financial needs in retirement. This can be accomplished through strategies like a home equity line of credit (HELOC), a home equity loan, or a reverse mortgage. 

How Many People Have Over $1 Million in Their 401(k)?

According to Fidelity’s Q4 2024 Retirement Analysis report, around 537,000 401(k) plan participants have $1 million or more in their 401(k)s.

Is 50 Too Late to Open a 401(k)?

You are eligible to enroll in a 401(k) as long as you’re 21 or older, working, and your employer offers you one. The sooner you’re able to open and contribute to a 401(k), the more your account can benefit from the effects of compound growth between now and retirement. 

Time plays an important role in growing your 401(k), alongside other factors like contribution amounts and employer matching. While you can open a 401(k) anytime in your 50s (as long as you’re still working), the earlier you start saving for retirement, the better.

What’s the Contribution Limit for a 401(k)?

The contribution limit for a 401(k) is adjusted annually for inflation. In 2025, any eligible plan participant under 50 can contribute up to $23,500. If you’re between the ages of 50 and 59, you may make additional catch-up contributions of $7,500 for a total contribution limit of $31,000. The defined contribution limit for both you and your employer is $70,000.

New this year, eligible plan participants between the ages of 60 and 63 can make even higher catch-up contribution limits. For 2025, the new limit tops out at $11,250 for a total 401(k) contribution limit of $34,750.

What Other Savings Vehicle Should I Have in My 50s Besides a 401(k)?

Even if you max out contribution limits each year and take advantage of employer matching, a 401(k) may not be enough to cover your needs in retirement. It’s also important to leverage tax-diverse income throughout retirement to keep your annual and lifelong tax liability within reason. 

Other common retirement savings vehicles to consider include a traditional IRA and a Roth IRA. Keep in mind that a traditional IRA is also funded with pre-tax contributions, meaning withdrawals you make in retirement will still be subject to ordinary income tax (just like your 401(k) distributions). Depending on your modified adjusted gross income (MAGI), the IRS also limits your ability to deduct IRA contributions from your taxes if you have access to a 401(k).

A Roth IRA will not lower your taxable income the year contributions are made, but it does present an opportunity to enjoy tax-free income in retirement (as long as certain conditions are met). Roth accounts do have income limitations, which may limit a high earner’s ability to leverage these particular savings vehicles outright. However, there are workarounds to this rule, such as a Roth conversion. 

How Much Money Do I Need to Save to Retire Comfortably?

There is no one-size-fits-all number for achieving a comfortable and financially secure retirement. Rather, you’ll need to consider your current lifestyle, goals for retirement, and anticipated expenses (such as moving to a new retirement destination or covering the cost of long-term care). 

As a general rule of thumb, Fidelity suggests saving around 10 times your income by the time you reach age 67. If you earn $80,000 a year, this would equate to around $800,000 in your 401(k) and other retirement savings accounts.

The Bottom Line

Your road to retirement will uniquely reflect your own needs and lifestyle goals, but it’s helpful to know where you stand compared to others your age. With retirement right around the corner, now is the time to amp up your savings efforts and boost contributions where possible, especially if you haven’t yet reached the savings targets suggested by experts. If you’re already making the most of your 401(k), look into additional savings opportunities like traditional IRAs, Roth IRAs, and your taxable brokerage account.