Apr 6, 2026
A recent analysis of Americans’ retirement account balances reveals the big differences in how much each generation has saved, and what strategies they can use to catch up. Financial firm Fidelity released its report for the fourth quarter of 2025 (1), which analyzed the 401(k) balances of 24.8 million participants in corporate defined contribution plans.
Fidelity found the average 401(k) balance was $146,400, but when broken down by age group, the story starts to look a little different.
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The average 401(k) balance for baby boomers (born 1946-1964) was $270,800; for Gen X (born 1965-1980), it was $222,100; for millennials (born 1981-1996), it was $83,700; and for Gen Z (born 1997-2012), it was $17,900.
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It’s worth noting that averages like these can be skewed by wealthy savers with very high 401(k) balances.
For example, in its report on Americans’ savings, based on 2024 data, financial firm Vanguard noted the average defined contribution plan balance was $148,153, and the median balance was $38,176 (median being a “halfway point,” where half the people had more, and half had less) (2).
Broken down by age, Vanguard defined contribution plan balances were as follows:
- 25 and younger: average balance of $6,899; median balance of $1,948
- 25–34: average balance of $42,640; median balance of $16,255
- 35–44: average balance of $103,552; median balance of $39,958
- 45–54: average balance of $188,643; median balance of $67,796
- 55–64: average balance of $271,320; median balance of $95,642
- 65+: average balance of $299,442; median balance of $95,425
An oft-cited benchmark for how much you should aim to save for retirement is 15% of your income. Fidelity’s analysis showed the average savings rate was 14.2% (combined total of employee contributions and employer matches).
For baby boomers, the average savings rate was 17.1%; for Gen X, it was 15.4%; for millennials, it was 13.5%; and for Gen Z, it was 11.3%.
If you’re further behind in saving for your age bracket, or you’re not hitting a 15% savings rate, there are things you can do to boost your retirement savings, no matter where you fall on the charts.
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A plan for baby boomers
For baby boomers, the challenge is simply that retirement is getting closer, so for some people, the pressure may be on to boost retirement savings. The advantages boomers have is that they are later in their careers and likely to be earning more, and less likely to have major expenses.
If you’re a boomer and you feel you’re behind on your retirement savings, be sure to take advantage of catch-up contributions. The 401(k) contribution limit for 2026 for individuals is $24,500. But those aged 60 to 63 can make catch-up contributions up to $11,250, for a total of $35,750 (3).
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If you’re a younger boomer, and still working, you could also consider delaying Social Security until age 70, since each year you wait from your full retirement age until age 70 will mean an increase in your monthly benefits (4).
A plan for Gen X
For Gen X, there’s similar advantages when it comes to retirement savings — namely, that you’re likely in your higher-earning years. You may also see your major expenses going down, though those in the “sandwich generation” who are caring for both their parents and their children, may not be in such a position.
There’s also the challenge of retirement looming closer, so if you’re a Gen Xer feeling the squeeze, fret not, and aim to push your retirement savings up as much as you’re able this year.
The limit for catch-up contributions for those age 50 is $8,000 in 2026, for a total of $32,500 (5). Aim to also take full advantage of any employer match offered. Note that in 2026, for those who earned more than $150,000 in the previous year, catch-up contributions will typically need to be to Roth 401(k)s (6).
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
A plan for millennials
For millennials, the challenges when it comes to saving for retirement are likely to be other major expenses taking a big piece of the pie: higher housing costs, student debt, daycare, the list goes on. However, younger workers still have time on their side when it comes to saving, and that goes a long way when it comes to the benefits of compound interest and time in the market.
If you’re a millennial looking to prioritize your retirement savings, getting your full employer match is key; if your employer doesn’t offer one, consider whether it’s worth finding one who does. Also, take a look at your investments and the fees you pay.
Keeping fees low can have a major impact on your savings over time. And, since you have more time to keep your money invested, look at your investments and evaluate your risk tolerance, since you have more time to weather ups and downs in the market.
A plan for Gen Z
For Gen Z, the challenges are obvious when it comes to savings: You’re not in your high earning years yet, and you may still be grappling with student debt as you try to establish yourself in your career. But luckily, you have a great advantage when it comes to time; even small contributions to your retirement fund can add up to big savings.
If you can start now, you’ll be way ahead of the game. Priorities for Gen Z include making saving a regular part of your budget, and learning about investing so you can make choices that will build your wealth over time. If your employer doesn’t offer a matching program — or it doesn’t offer employer-sponsored retirement plans at all — consider making that a top goal for the near future.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Fidelity (1); Vanguard (2); IRS (3, 5); Social Security (4); CNBC (6)
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Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
