At 57, retirement is starting to feel closer for many workers. With roughly five to 10 years left in the workforce, it is a good time to ask a simple question: Are you where you need to be?
The answer depends on which comparison you use. Average 401(k) balances can look impressively high because a relatively small group of very large accounts lifts the figure upward.
For a more realistic picture, median balances are often more useful. Fidelity and Vanguard both publish savings guides tied to salary, along with age-based 401(k) averages that can help savers gauge their progress.
Average 401(k) balances for people in their late 50s
Fidelity’s latest retirement data shows that Americans ages 55 to 59 have an average 401(k) balance of about $260,800. That reflects many years of saving and market growth.
Vanguard reports an even higher average for the same age range, at $305,006.
The median tells a different story
The average does not describe the typical saver.
Large retirement accounts can distort the figure upward. The median balance, which marks the middle of the pack, is often a better snapshot of where most savers stand.
Fidelity does not publish medians in its latest report, but Vanguard does. Its latest research puts the median 401(k) balance for Americans ages 55 to 64 at $107,269.
Why averages alone can mislead
Many people in their 50s see the average balance and assume they are far behind.
But Vanguard’s data suggests otherwise. For those ages 55 to 64, the average balance is about 180% higher than the median.
Most workers are much closer to the median than the average. Looking only at unusually large accounts can create unnecessary worry.
On the other hand, comparing yourself with the median can also create false comfort. Even if your balance is near that level, you and many of your peers could still be short of where you want to be.
Broad data points can be helpful, but they should not be the only basis for retirement planning.
A better gauge: salary-based benchmarks
It may be more helpful to compare your 401(k) balance with your income.
Someone earning $80,000 does not need the same retirement balance as someone making $250,000. That is why many employers and financial firms use income-based targets instead of a single dollar goal for everyone.
Fidelity’s rule of thumb: seven to eight times salary
Fidelity suggests that people in their late 50s aim for about seven to eight times their annual salary in retirement savings.
For a worker making $80,000 a year, that works out to a target of roughly $560,000 to $640,000.
Fidelity also recommends saving about 15% of pretax income each year, including any employer match, as a long-term goal for many workers.
T. Rowe Price offers a range
T. Rowe Price uses a similar approach but with a broader target range.
For someone around age 55, its benchmark is about 4.5 to 8 times annual income.
That translates to a 401(k) target of about $360,000 to $640,000.
By age 60, the range rises to roughly 6 to 11 times salary, or $480,000 to $880,000, reflecting the closer approach of retirement.
You may still have years to save
If you are 57, retirement may not be right around the corner.
Many Americans keep working into their late 60s and beyond. That leaves time to keep contributing, benefit from employer matching, and let investments grow for a few more years.
Catch-up contributions can make a difference
Workers age 50 and older get an important advantage.
In 2026, employees can contribute the standard $24,500 annual 401(k) limit plus an additional $8,000 in catch-up contributions. Workers ages 60 to 63 have an even higher catch-up amount.
That means savers age 50 and older can put away at least $32,500 before employer contributions are added. That extra amount can matter a great deal in the final stretch before retirement.
Small increases can still help
Not everyone can suddenly max out a retirement plan.
Still, raising your contribution rate by one or two percentage points each year can build momentum without heavily affecting your daily budget. Many workplace plans also let you schedule automatic annual increases, which can make saving easier.
Do not ignore your investments
Saving more is only part of the equation.
Your investment mix should also fit your retirement timeline and risk tolerance. Someone hoping to retire in two years may need a different portfolio than someone planning to work another 15 years.
Target-date funds can be useful, but it can also be smart to get advice from a financial professional.
Retirement is more than one account
401(k) balances are often central to retirement planning, but they are not the whole picture. Not everyone has access to a 401(k) or similar plan.
Some households rely on several income sources, including a spouse’s pension, rental income, annuities, and other assets.
Focus on progress
Having less than seven to eight times your salary saved does not mean you are headed for financial trouble.
Keeping up with contributions, delaying retirement by a year or two, and using catch-up contributions when possible can all improve retirement readiness over time.
The bottom line
The average 57-year-old’s 401(k) balance may look impressive, but it does not reflect most workers’ reality. Median data and salary-based benchmarks from firms such as Fidelity and T. Rowe Price can offer a more useful way to measure retirement progress.
If your balance is below those targets, do not panic. Use it as a cue to review your contribution rate, take advantage of catch-up contributions if you can, and make the most of your remaining working years.
FAQs
How much can I put in my 401(k) at 57 in 2026?
In 2026, workers can contribute the standard $24,500 employee limit plus an $8,000 catch-up contribution because they are over 50, for a total of $32,500. If you are between 60 and 63 and your plan allows it, a higher catch-up contribution of $11,250 replaces the $8,000, bringing the total to $35,750. Employer contributions are separate.
What is the average retirement savings by age?
Average retirement savings generally rise over the course of a career and tend to peak near retirement. Recent Vanguard and Fidelity data show that workers in their 30s often have tens of thousands of dollars in a 401(k), those in their 40s can reach the low six figures, and savers ages 55 to 59 average around $260,000 or more. Because a small number of very large accounts can push averages higher, the median balance is usually lower and gives a more realistic view of the typical saver.
What if I am behind on retirement savings at 57?
You still have options. Many people work into their 60s, which gives investments more time to grow. Increasing your contribution rate, using catch-up contributions, delaying retirement if possible, and reviewing your investment mix can all help improve your outlook.
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