How Much Should Be in a 401(k) by Age 65? The Average Could Be a Wake-Up Call

If retirement is getting close, you may be asking whether your savings are on track and whether your 401(k) can support the lifestyle you want. Some people are well ahead, but many Americans may still be short of what a comfortable retirement requires.

Looking at average 401(k) balances can help you gauge where you stand and what moves to make before 65. The figures may be surprising, but there are still ways to improve your position.

The typical 401(k) balance at age 65

Empower says the average 401(k) balance for people in their 60s is $581,696, while the median is $189,745. That is above the overall figure across all ages, but it may still fall short for many retirees, especially as people live longer and healthcare costs continue to climb.

Many financial planners suggest saving enough to replace roughly 75% of your pre-retirement income. For a lot of workers, that can mean building up several times their annual salary, which makes these averages a reminder that some savers still have ground to cover.

The average 401(k) balance across all age groups

Across all age groups, Empower reports an average 401(k) balance of $406,242. Because this includes both early-career workers and people already in retirement, the number is naturally pulled lower.

Still, it can serve as a helpful reference point for evaluating your own progress. Comparing your balance with national averages can show whether your saving rate and investing approach are keeping pace with your long-term goals.

Average 401(k) balances by age group

Empower breaks down average and median balances this way:

• 20s: $127,820 average / $45,020 median
• 30s: $226,678 average / $81,439 median
• 40s: $429,658 average / $161,063 median
• 50s: $645,000 average / $251,242 median
• 60s: $581,696 average / $189,745 median
• 70s: $440,222 average / $98,229 median
• 80s: $424,165 average / $77,165 median

These numbers highlight the value of compounding and the importance of investing consistently over many years. Starting early and increasing contributions as income rises can allow even modest returns to build into substantial retirement savings.

Ways to boost retirement savings

If your 401(k) is not where you want it to be, there is still time to make changes. Small, steady adjustments can have a meaningful effect on your long-term savings.

Pay down debt

High-interest debt, including credit cards and personal loans, can consume money that could otherwise go toward retirement investing. Eliminating debt before leaving the workforce can lower expenses and give you more flexibility. Once those payments are gone, you can redirect that money toward a 401(k) or IRA.

Contribute the maximum allowed

For 2026, the IRS allows workers to put up to $24,500 into a 401(k). Those age 50 and older can add an extra $8,000 in catch-up contributions, for a total of $32,500.

If you also save in an IRA, the 2026 limit is $7,500, or $8,600 with the $1,100 catch-up contribution for people 50 and older. Getting as close as possible to those limits can help speed up savings in the years before retirement.

Use the employer match

If your employer offers a 401(k) match, contribute at least enough to receive the full amount. That is essentially free retirement money. For instance, if your company matches 50% of contributions up to 6% of salary, contributing that full amount can add thousands of dollars to your yearly savings.

Over time, those matched contributions and investment gains can raise your balance significantly.

Reduce unnecessary spending

One of the easiest ways to create more room for savings is to cut expenses. Review subscriptions, dining out, and other discretionary costs.

Even a few hundred dollars a month funneled into a 401(k) can grow substantially over time. With compounding, small but regular contributions can become a much larger sum by retirement.

Find extra income

A part-time job, freelance work, or side hustle can create additional money that goes straight into savings. Beyond adding cash, staying employed longer can delay withdrawals from retirement accounts and give investments more time to grow.

Even a temporary boost in earnings during your 50s or early 60s can make a lasting difference in retirement preparedness.

Review your investment mix

As retirement approaches, it is smart to revisit your portfolio. Being too conservative can limit growth, while being too aggressive can expose you to unnecessary swings.

Consider gradually moving toward a balanced mix of stocks, bonds, and cash that fits your time horizon and comfort level. Periodic rebalancing can help protect gains while keeping risk in check.

The takeaway

People nearing retirement may find that the average 401(k) balance is not enough for a comfortable future, but averages do not determine your personal outcome. By contributing more, cutting debt, trimming costs, and staying invested, you can build a stronger retirement foundation.

Consistent decisions made now can help improve your retirement readiness and bring you closer to the financial security you have spent years working toward.

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