NetTrack Blog

Tag: retirement savings

  • The Average Retirement Savings by Age in 2026 (Median vs. Average)

    The Average Retirement Savings by Age in 2026 (Median vs. Average)

    The average American family has $333,940 saved in retirement accounts. The median family has $87,000 — less than a third as much. Both figures come from the same Federal Reserve survey, and the gap between them is the single most useful thing in this article: a minority of very large accounts drags the average far above what a typical household actually has.

    Here are the real numbers by age, and how to judge yours.

    Average and median retirement savings by age

    Age group Median balance Average balance
    Under 35 $18,880 $49,130
    35–44 $45,000 $141,520
    45–54 $115,000 $313,220
    55–64 $185,000 $537,560
    65–74 $200,000 $609,230
    75+ $130,000 $462,410
    All families $87,000 $333,940

    Source: Federal Reserve Survey of Consumer Finances (2022, the latest published survey). Figures cover families who have a retirement account — 401(k)s, IRAs, and similar — so households with nothing saved aren't dragging these down.

    Two patterns worth reading closely:

    The average runs 2.5–3× the median at every single age. That ratio is remarkably stable, and it means comparing yourself to any "average retirement savings" headline will make you feel behind when you may not be. Use the median column.

    Balances peak at 65–74, then fall. That drop isn't a failure — it's the plan working. Retirees spend down what they built, and required minimum distributions force withdrawals starting at 73.

    Why these numbers look higher than 401(k)-only stats

    You'll see lower figures elsewhere — Vanguard puts the median 401(k) balance around $44,000. That's not a contradiction. The Fed counts every retirement account a household owns: both spouses' 401(k)s, old plans from previous employers, rollover IRAs, Roth IRAs, the works. A single-plan statistic only sees one slice.

    If you're benchmarking, the Fed's household-level figures are the fairer comparison — because your retirement will be funded by all of your accounts, not one of them. See average 401(k) balance by age for the plan-level view.

    What you should actually have saved

    Averages describe the crowd. Targets describe the goal — and the crowd is not on track. The standard benchmark, from Fidelity, is a multiple of your salary:

    Age Target Median household reality
    30 1× salary Well short
    40 3× salary Well short
    50 6× salary Well short
    60 8× salary Well short
    67 10× salary Well short

    At a $75,000 salary that means $75,000 by 30, $225,000 by 40, and $450,000 by 50. Compare that to the medians above and the conclusion is uncomfortable but clear: the typical American is roughly half of where the guidelines say they should be.

    Our full breakdown of the targets — including dollar figures at several salary levels — is in how much should you have saved by age.

    If you're behind

    Being behind the benchmark at 45 is recoverable; being behind at 62 is harder. The levers, in order of impact:

    1. Capture the full employer match. An instant 50–100% return. Nothing else competes.
    2. Raise your contribution rate by 1% a year. Painless in practice, and compounding does the rest. The combined employee-plus-employer savings rate hit a record 14.4% recently — close to the 15% that's typically recommended.
    3. Use catch-up contributions at 50+. The IRS deliberately lets older savers put in more.
    4. Postpone Social Security. Delaying from 62 to 70 raises your benefit by roughly 75% — the cheapest longevity insurance available.
    5. Cut the retirement number itself. Spending $60,000 a year instead of $80,000 lowers the target portfolio by $500,000 under the 4% rule. Reducing the goal counts as progress.

    Retirement savings aren't your whole picture

    Your retirement accounts are one asset class on a larger balance sheet. Home equity, taxable brokerage accounts, cash, and debts all belong in the same view — that's your net worth, and it's what actually determines when you can stop working.

    A household with $150,000 in a 401(k) and $250,000 in home equity is in a very different position than one with $150,000 and a mortgage underwater — even though the retirement column reads identically.

    Want every account — retirement, brokerage, cash, and property — in one running total? NetTrack tracks it automatically and shows exactly what changed each month. Start free.

  • The Average 401(k) Balance by Age in 2026 (And Why the Median Matters More)

    The Average 401(k) Balance by Age in 2026 (And Why the Median Matters More)

    The average American 401(k) balance is about $141,000 as of early 2026, according to Fidelity. Vanguard's numbers, covering 4.6 million accounts through year-end 2025, put the average at $167,970 — but the median is just $44,115. That gap is the most important fact in this article: the typical saver has far less than the "average" suggests, because a minority of large accounts pull the average up.

    Here's how balances break down by age and generation, and how to judge your own number.

    Average 401(k) balance by generation (Fidelity, Q1 2026)

    Generation Average 401(k) balance
    Baby Boomers $260,300
    Gen X $215,600
    Millennials $82,600
    Gen Z $18,000
    All savers $141,000

    Vanguard's How America Saves 2026 report adds the endpoints by age: workers under 25 average $7,259 (median $2,234), while those 65 and older average $330,186 (median $103,202). At every age, the median runs at roughly a quarter to a third of the average.

    One genuinely encouraging trend: the combined employee-plus-employer savings rate hit a record 14.4% in early 2026 — close to Fidelity's recommended 15%.

    Why the median is your benchmark

    Averages answer "how much money is in 401(k)s per person" — a fact about the system. Medians answer "how much does the typical person have" — a fact about people like you. When the average is $168,000 and the median is $44,000, comparing yourself to the average mostly measures how far you are from a small number of very large accounts.

    Am I on track? The salary-multiple test

    A better benchmark than other people's balances is your own salary. Fidelity's widely used guideline: 1× your salary saved by 30, 3× by 40, 6× by 50, 8× by 60, and 10× by 67 — across all retirement accounts, not just your current 401(k). We break this down with examples in How Much Should You Have Saved by 30, 40, and 50?

    Three things that move the number most

    1. Capture the full employer match. It's an immediate 50–100% return on those dollars; leaving it unclaimed is the most expensive common mistake.
    2. Raise your rate 1% per year. Going from 6% to 12% over six years is barely felt per paycheck but roughly doubles your lifetime contributions.
    3. Count every account. Old 401(k)s from previous jobs, IRAs, and HSAs are all part of the real picture — and orphaned accounts are where fees and forgotten cash-heavy allocations hide.

    That last one is where tracking tools earn their keep: your true retirement position is the sum of scattered accounts, which no single provider's dashboard shows you.

    Frequently asked questions

    What's a good 401(k) balance at 40?
    By Fidelity's guideline, about 3× your salary across retirement accounts — $240,000 for an $80,000 earner. The typical American at that age has meaningfully less, so "on the guideline" means comfortably ahead of the median.

    Why is my balance so far below the average for my age?
    Averages are inflated by high earners and long-tenured savers. Compare to the median, and more importantly, to the salary-multiple targets for your own income.

    Do these figures include IRAs?
    No — they're 401(k)-plan data from Fidelity and Vanguard. Your full retirement picture should add IRAs, HSAs, and old employer plans.

    Where does this data come from?
    Fidelity's quarterly retirement analysis (Q1 2026) and Vanguard's How America Saves 2026 report covering year-end 2025. Both update regularly, and we'll refresh this page as new quarters land.

    See all your retirement accounts — current 401(k), old ones, IRAs — in one place with NetTrack, including how they're actually performing. Start free.

  • How Much Should You Have Saved by 30, 40, and 50? (2026 Benchmarks)

    How Much Should You Have Saved by 30, 40, and 50? (2026 Benchmarks)

    The most widely used benchmark, from Fidelity, is simple: you should have 1× your annual salary saved by age 30, 3× by 40, 6× by 50, 8× by 60, and 10× by 67 — counting all retirement and investment accounts together.

    For someone earning $80,000, that means roughly $80,000 saved by 30, $240,000 by 40, and $480,000 by 50. Here's the full breakdown, why the targets accelerate, and what to do if you're behind.

    Savings targets by age

    Age Target (× salary) At $60k salary At $80k salary At $100k salary
    30 1× $60,000 $80,000 $100,000
    35 2× $120,000 $160,000 $200,000
    40 3× $180,000 $240,000 $300,000
    45 4× $240,000 $320,000 $400,000
    50 6× $360,000 $480,000 $600,000
    55 7× $420,000 $560,000 $700,000
    60 8× $480,000 $640,000 $800,000
    67 10× $600,000 $800,000 $1,000,000

    Based on Fidelity's retirement savings guidelines, which assume retiring at 67 and maintaining your pre-retirement lifestyle.

    Two clarifications people often miss:

    • "Saved" means invested, not in a savings account. These targets assume market growth doing much of the work — 401(k)s, IRAs, HSAs, and brokerage accounts all count.
    • The multiple is of your current salary. Get a big raise and your target jumps too; that's the guideline working as intended, since your lifestyle (and the retirement that must fund it) got more expensive.

    Why the targets accelerate

    Notice the jump: one salary in your first decade of work, then two more by 40, then three more by 50. That's compounding math, not expectation inflation — money invested at 25 has 40 years to grow, so early savings do disproportionate work. The corollary cuts both ways: being behind at 30 is cheap to fix; being behind at 50 is not.

    Behind the curve? In good company — and here's the playbook

    Most Americans are behind these benchmarks — the median 401(k) balance is about $44,000, far below where the multiples say a mid-career saver should be. If that's you:

    1. Get the full employer match first. It's the highest-return money available to you.
    2. Use catch-up contributions if you're 50+. The IRS allows meaningfully higher 401(k) and IRA limits from age 50.
    3. Automate an annual 1% increase. Most plans can do this automatically; you won't feel it, and it compounds your savings rate.
    4. Attack high-interest debt in parallel. A credit card at 24% outruns any market return; clearing it is a guaranteed win.
    5. Know your real number. Scattered accounts make people underestimate (or overestimate) where they stand — the benchmark only helps if you're comparing it against your true total.

    How this fits with other benchmarks

    Salary multiples measure retirement readiness. For the broader picture — home equity, debts, everything — the yardstick is net worth; see the average net worth by age and what puts you in the top 10%. The two views together answer both "can I retire?" and "am I building wealth?"

    Frequently asked questions

    Are Fidelity's multiples too aggressive?
    They're calibrated for maintaining your lifestyle from 67 onward. If you expect lower expenses, Social Security covering a bigger share, or working past 67, you can land safely below 10×. Planning to retire early? You'll need more, sooner.

    Should I count my home equity?
    Not for these targets — you can't spend the house you live in. Home equity belongs in your net worth, not your retirement-savings multiple.

    What if my income just increased a lot?
    Your multiple drops overnight, and that's fine. Treat the new target as a direction, not a pass/fail grade — and avoid letting lifestyle inflate to the new income while you close the gap.

    The hardest part is knowing your true total across every account. NetTrack adds it up automatically and shows whether the number is moving fast enough. Start free.