How much money Americans in their 30s and 40s have in their 401(k)s

Key Points:

• The average 401(k) balance rose 10.5% from March to June, marking the largest quarterly increase since 2020, with average balances of $75,200 for participants in their 30s and $156,800 for those in their 40s, according to Fidelity.
• Workers are saving an average of 14.4% of their pay into 401(k)s, including employer contributions, with over 80% contributing enough to receive the full employer match, which is a key benefit of 401(k) plans.
• Fidelity recommends saving the equivalent of one’s annual income by age 30 and three times that by age 40 across all retirement accounts, aiming for 10 times income by age 67, but emphasizes that 401(k) balances are just one part of overall retirement readiness.
• Financial experts advise considering total net worth, including home equity and debts, alongside retirement accounts, and suggest investing at least 15% of income across all accounts to stay on track for retirement goals.
• While starting early is ideal, individuals in their 40s can still catch up by increasing contributions, with strategies such as gradually raising savings rates and redirecting funds as other expenses decrease, highlighting that it’s never too late to improve retirement savings.