Find Out Where Your 401(k) Stacks Up Against Others In Your Age Group

It makes sense that retirement savings levels vary significantly from one generation to the next. Young adults are typically working their way up in a career and have less put aside for their retirement years than those a few decades older.

But if you’ve ever wondered how your 401(k) account balance compares to those in your own generation, a new study has you covered.

Heading in the right direction

Across generational lines, the average retirement plan contains more money now than it did just last year. Fidelity Investments looked at more than 26,000 plans covering about 24 million participants and found that the average 401(k) is valued at roughly $127,000 as of the second quarter of this year.

Broken down by age, here’s what the averages look now compared to the first quarter of 2023:

• Generation Z: $12,000 vs. $7,100
• Millennials: $62,000 vs. $44,900
• Generation X: $182,100 vs. $145,500
• Baby Boomers: $242,200 vs. $215,000

The youngest generation on the list saw its average balance balloon by about 66% — or more than 10 times the percentage of growth within the oldest generation.

Better, but not good enough

Even though all age groups have experienced encouraging retirement growth, that doesn’t mean it’s time to coast into the golden years. With consumer prices and healthcare costs still climbing, none of the generations have reached an average 401(k) balance that sets people up for a comfortable retirement.

This report is based on millions of cases, though, so it’s always up to each individual to make the best decisions for his or her financial future. And if you shoot for the goal of retiring with investments totaling at least 10 times your highest annual salary, you should be in good shape.

Chris Agee October 14th, 2024

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