Today, 401(k)s are considered the most popular type of retirement plan. More than 70 million Americans currently rely on this retirement plan to build their retirement savings.
With that in mind, we decided to examine 401(k) participation rates, account balances, and growth trends across various demographics more closely.
Keep reading to find out where you stand compared to the average 401(k) account holder.
Top 401(k) Stats
- In 2024, the average 401(k) balance is $127,100.
- People ages 65 and up have the highest average 401(k) balance at $272,588.
- The average 401(k) balance for men is $157,489, while the average balance for women is 33.41% lower at $112,401.
- People earning $150,000+ annually have the highest average 401(k) balance at $336,470.
What is the average 401(k) balance?
According to the latest data, the average 401(k) balance is $127,100.
There are approximately 71.5 million active 401(k) accounts in the United States, an increase of 6.4% in 2023. At the end of Q2 2024, these accounts held over $8.0 trillion in assets.
However, the average account balances fluctuate based on various factors such as income level, age, gender, job tenure, and state.
We’ll explore each in more detail below.
Source: Capitalize, Investment Company Institute, Fidelity Investments
Average 401(k) Balance by Age
The number one factor that impacts a 401(k) balance is the account holder’s age.
For example, people aged 65 and up have the highest average 401(k) balance, at $272,588. They also have the highest median 401(k) balance, at $88,488.
In contrast, younger professionals aged 25 and under have the lowest average 401(k) balance at $7,351 and the smallest median 401(k) balance at $2,816.
Here’s a complete look at the average and median 401(k) balance by age.
Age Group | Average Balance | Median Balance |
---|---|---|
Under 25 | $7,351 | $2,816 |
25 to 34 | $37,557 | $14,933 |
35 to 44 | $91,281 | $35,537 |
45 to 54 | $168,646 | $60,763 |
55 to 64 | $244,750 | $87,571 |
65 and up | $272,588 | $88,488 |
Source: Vanguard
Average 401(k) Balance by Gender
Today, men, on average, have a 33.41% higher 401(k) balance than women.
The average working male has a balance of $157,489, while the average working female has a balance of $112,401.
Gender | Average 401(k) Balance | Median 401(k) Balance |
---|---|---|
Men | $157,489 | $42,263 |
Women | $112,401 | $31,164 |
Factors such as salary, career longevity, and investment risk explain why men tend to have higher 401(k) balances than women.
However, it’s not all attributed to income. Below is a comparison of the average 401(k) balances for men and women based on income range.
Income Range | Female (Average) | Male (Average) | All (Average) |
---|---|---|---|
<$15,000 | $17,949 | $23,424 | $24,175 |
$15,000–$29,999 | $17,227 | $19,920 | $18,610 |
$30,000–$49,999 | $26,823 | $26,131 | $25,096 |
$50,000–$74,999 | $59,731 | $62,613 | $59,273 |
$75,000–$99,999 | $101,845 | $111,918 | $106,875 |
$100,000–$149,999 | $168,642 | $189,245 | $178,818 |
$150,000+ | $300,200 | $382,012 | $336,470 |
Despite being in the same income bracket, men still have higher average 401(k) balances in all but one income range ($30,000–$49,999).
The large disparity of 401(k) balances between men and women is more evident when divided into generations.
For example, Baby Boomer men have a median 401(k) balance of $248,000, while women have a median 401(k) balance of $101,000.
Generation | Women | Men |
---|---|---|
Baby Boomers | $101,000 | $248,000 |
Generation X | $51,000 | $127,000 |
Millennials | $29,000 | $63,000 |
Generation Z | $26,000 | $42,000 |
Source: Vanguard, Transamerica Center for Retirement Studies
Average 401(k) Balance by Income Level
Income level directly impacts 401(k) account balances and retirement savings.
Interestingly, the lowest income bracket (under $15,000) has a slightly higher average 401(k) balance than those making between $15,000 and $29,999.
However, from the $30,000 income level onwards, there’s a clear upward trend in both average and median balances as income increases.
For those earning $150,000 and above, the average 401(k) balance of $336,470 is nearly 14 times higher than those in the under $15,000 bracket.
Below is a look at each income level and their average 401(k) balance.
Annual Income | Average 401(k) Balance | Median 401(k) Balance |
---|---|---|
Under $15,000 | $24,175 | $3,691 |
$15,000 to $29,999 | $18,610 | $6,142 |
$30,000 to $49,999 | $25,096 | $10,072 |
$50,000 to $74,999 | $59,273 | $24,939 |
$75,000 to $99,999 | $106,875 | $51,073 |
$100,000 to $149,999 | $178,818 | $91,323 |
$150,000 and above | $336,470 | $188,678 |
Source: Vanguard
Average 401(k) Balance by Tenure
Job tenure, like age, plays a significant role in 401(k) account balances.
Employees in their first year of service have the lowest average balance at $19,192, with a median of just $4,458.
As tenure increases, so do account balances. Those with 2-3 years of service see their average balance more than double to $41,868.
The most dramatic increase occurs for those with ten or more years of tenure. Their average balance of $288,318 is nearly 15 times higher than those in their first year.
Below is a detailed look at the average 401(k) balance by job tenure.
Job Tenure (years) | Average Balance | Median Balance |
---|---|---|
0–1 | $19,192 | $4,458 |
2–3 | $41,868 | $18,264 |
4–6 | $76,864 | $38,979 |
7–9 | $116,717 | $64,076 |
10+ | $288,318 | $147,383 |
Source: Vanguard
Average 401(k) Balance by State
Connecticut has the highest average 401(k) balance in the United States at $545,754.
Close behind Connecticut is New Jersey at $514,245, New Hampshire at $512,781, and Alaska at $503,822.
Below is a look at all 50 states and where they rank.
Rank | State | Average Retirement Balance |
---|---|---|
1 | Connecticut | $545,754 |
2 | New Jersey | $514,245 |
3 | New Hampshire | $512,781 |
4 | Alaska | $503,822 |
5 | Vermont | $494,569 |
6 | Virginia | $492,965 |
7 | Maryland | $485,501 |
8 | Massachusetts | $478,947 |
9 | Minnesota | $470,549 |
10 | Washington | $469,987 |
11 | Iowa | $465,127 |
12 | North Carolina | $464,104 |
13 | Pennsylvania | $462,075 |
14 | Delaware | $454,679 |
15 | Kansas | $452,703 |
16 | Oregon | $452,558 |
17 | California | $452,135 |
18 | Illinois | $449,983 |
19 | Colorado | $449,719 |
20 | South Dakota | $449,628 |
21 | South Carolina | $449,486 |
22 | Wisconsin | $448,975 |
23 | Kentucky | $441,757 |
24 | Michigan | $439,568 |
25 | Idaho | $437,396 |
26 | Georgia | $435,254 |
27 | Texas | $434,328 |
28 | Florida | $428,997 |
29 | New Mexico | $428,041 |
30 | Ohio | $427,462 |
31 | Arizona | $427,418 |
32 | Missouri | $410,656 |
33 | Indiana | $405,732 |
34 | Nebraska | $404,650 |
35 | Maine | $403,751 |
36 | Alabama | $395,563 |
37 | Rhode Island | $392,622 |
38 | Montana | $390,768 |
39 | Louisiana | $386,908 |
40 | New York | $382,027 |
41 | Wyoming | $381,133 |
42 | Nevada | $379,728 |
43 | Tennessee | $376,476 |
44 | West Virginia | $370,532 |
45 | Hawaii | $366,776 |
46 | Arkansas | $364,395 |
47 | Oklahoma | $361,366 |
48 | Mississippi | $347,884 |
49 | North Dakota | $319,609 |
50 | Utah | $315,160 |
Source: SoFi
Average 401(k) Participation Rates
The average 401(k) participation rates vary across demographic factors, including income, age, gender, and job tenure.
For example, income plays a major role in 401(k) participation. As income increases, so does the likelihood of participating in a 401(k) plan.
In fact, people earning over $150,000 annually have a 95% participation rate. On the other hand, those earning under $15,000 per year have a 40% participation rate.
Here’s a look at each income range and their respective participation rates.
Income Range | Participation Rate |
---|---|
<$15,000 | 40% |
$15,000–$29,999 | 58% |
$30,000–$49,999 | 76% |
$50,000–$74,999 | 87% |
$75,000–$99,999 | 89% |
$100,000–$149,999 | 90% |
$150,000+ | 95% |
The same is true for different age groups. Young workers under 25 have the lowest participation rate at 58%. This is likely due to lower income, other financial priorities, or lack of awareness.
Participation peaks in the 35-64 age range at 86%. This suggests that as workers progress in their careers, they become more focused on retirement planning.
Here’s a look at each age group.
Age Group | Participation Rate |
---|---|
<25 | 58% |
25–34 | 83% |
35–44 | 86% |
45–54 | 86% |
55–64 | 86% |
65+ | 76% |
Job tenure is another factor that shows a clear correlation with 401(k) participation.
New employees (0-1 year) have the lowest participation rate, at 73%, while those with 7-9 years of tenure have the highest, at 89%.
Job Tenure (years) | Participation Rate |
---|---|
0–1 | 73% |
2–3 | 83% |
4–6 | 86% |
7–9 | 89% |
10+ | 88% |
Source: Vanguard
Conclusion
If there is one key takeaway from these statistics, it’s that major disparities in retirement savings exist across income levels, age groups, and job tenures.
These figures serve as benchmarks for individuals to gauge their progress and identify areas for improvement in retirement planning.
As the retirement landscape continues to change, it will be interesting to see how Americans adjust to continue growing their retirement savings in the coming years.