Here’s the average 401(k) balance by age in 2026 - are you ahead or behind?

Key Points:

• The average 401(k) balance among Americans is $351,242, with balances growing steadily through participants' 20s to 50s, peaking in their 60s, and then declining in later years as withdrawals begin.
• On average, 401(k) accounts reach the million-dollar mark in participants' 50s, with one in five people having at least $1 million saved, according to a study analyzing data from over five million Empower account holders.
• Employer matching contributions significantly boost 401(k) growth, often doubling employee contributions up to a certain percentage, highlighting the importance of contributing enough to receive the full match.
• Despite these positive savings trends, many Americans remain pessimistic about retirement, with over half expecting less than $500,000 at retirement and facing challenges due to high inflation and the precarious future of Social Security funding.
• The Social Security Board of Trustees warns that funding for the federal retirement system may be depleted by 2032, potentially reducing benefits by up to 22%, emphasizing the need for legislative action to maintain the program's financial stability.