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- The average 401(k) balance is $106,478, according Vanguard’s 2020 analysis of over 5 million plans.
- But most people don’t have that much saved for retirement.
- The median 401(k) balance is $25,775, a better indicator what Americans have saved for retirement.
- Use Blooom to analyze your 401(k) today and see how you can grow your retirement savings.
The average 401(k) account balance in 2020 was $106,478, an increase from 2019’s $92,148 average, according to according to Vanguard data.
Each year, Vanguard analyzes account data from 5 million retirement accounts. Across these accounts, the typical account balance varies widely by the method used to calculate it – while the average 401(k) savings balance is over $100,000, the median account balance is much less at $25,775, according to Vanguard’s latest data.
But there are several factors that influence the typical amount that people have to retire. In general, account balances increase with age and income level, as well as the industry you work in and your gender.
Average 401(k) balance by age
Retirement savings are invested, so they grow with compound interest, which means account balances increase with time. Like other types of retirement accounts, money saved in a 401(k) grows like a snowball, with interest earning interest on itself.
With compounding interest, the earlier money is put into an account, the more opportunity it has to grow, and the greater the possible returns. In retirement accounts like 401(k)s, building retirement savings early means a greater opportunity for growth.
Here’s the average amount people have saved for retirement by age group, according to Vanguard’s data.
| Age | Average 401(k) balance | Median 401(k) balance |
| Under 25 | $5,419 | $1,817 |
| 25 to 34 | $26,839 | $10,402 |
| 35 to 44 | $72,578 | $26,188 |
| 45 to 54 | $135,777 | $46,363 |
| 55 to 64 | $197,322 | $69,097 |
| 65 and up | $216,720 | $64,548 |
Average 401(k) balance by income level
Vanguard’s data shows that 401(k) balances are greatly influenced by annual income. Across all age groups, the amount people save for retirement increases with their earnings.
The most significant increase in 401(k) balances comes after the $50,000-per-year mark. While workers earning between $30,000 and $49,999 per year have a median balance of $6,909, workers in the next-highest bracket earning between $50,000 and $74,999 have a median balance more than three times larger, at $27,630.
| Annual income | Average 401(k) balance | Median 401(k) balance |
| Less than $15,000 | $8,260 | $1,356 |
| $15,000 to $29,999 | $13,069 | $4,020 |
| $30,000 to $49,999 | $29,740 | $10,439 |
| $50,000 to $74,999 | $66,033 | $27,630 |
| $75,000 to $99,999 | $113,143 | $54,020 |
| $100,000 to $149,999 | $177,597 | $91,470 |
| $150,000 and above | $298,851 | $154,989 |
Average 401(k) balance by gender
In general, men save more for retirement than women.
Across all age levels, Vanguard’s data indicates that women have a median 401(k) account balance about $10,000 less than that of men. A gender pay gap contributes to lower retirement savings, with the average woman earning 82 cents for every man’s dollar.
Because income is tied to 401(k) account balances, this gender pay gap has an effect. Here’s the typical amount a person of each gender reported – men and women were the only genders considered in this study – has saved for retirement across all ages and incomes.
| Gender identity | Average 401(k) balance | Median 401(k) balance |
| Men | $131,045 | $34,246 |
| Women | $88,393 | $22,434 |
While a large disparity in savings exists, women often need greater retirement savings than men to retire comfortably. Women tend to live longer and could therefore need more long-term care than men, which could require greater spending in retirement.
Average 401(k) balance by industry
According to Vanguard data, balances vary widely between industries. Retirement-savings matches, in which an employer matches an employee’s contributions to their savings up to a given percentage, may be more common in some industries than others. Earnings could also affect how workers in a specific industry save.
Here’s how the average balances break down by industry, according to Vanguard’s data.
| Industry | Average balance | Median balance |
| Agriculture, mining, construction | $161,065 | $39,869 |
| Finance, insurance, real estate | $128,864 | $33,390 |
| Business, professional, nonprofit | $127,647 | $28,830 |
| Manufacturing | $123,843 | $36,639 |
| Transportation, utilities, communications | $95,476 | $23,518 |
| Media, entertainment, leisure | $88,636 | $23,924 |
| Education and health | $81,374 | $19,589 |
| Wholesale, retail | $71,795 | $13,089 |
People who work in agriculture, mining, and construction do a significant amount of saving, with the average industry worker’s account balance over $160,000. However, teachers and healthcare workers, and people who work in wholesale and retail, tend to lag behind, with average account balances under $70,000.
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