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

Boosted by a strong stock market, the average 401(k) balance jumped 10.5% from March through June — the biggest quarterly increase since 2020, according to new data from Fidelity.

Here’s how much Fidelity participants in their 30s and 40s have socked away, on average:

• 30s: $75,200
• 40s: $156,800

Workers are also saving a historically high share of their pay, Fidelity says. Including employer contributions, 401(k) holders are investing an average 14.4% of of their paychecks, just shy of Fidelity’s recommended 15%. More than 8 in 10 participants were also contributing enough to receive their full employer match — a contribution based on how much a worker puts into their 401(k), up to a set limit.

“A 401(k) is a fantastic retirement savings tool for a lot of reasons. I’d generally rank it as one of the more high-priority retirement savings options out there, especially when a match is provided,” says Kevan Melchiorre, certified financial planner and co-founder of Tenet Wealth Partners.

Fidelity recommends having the equivalent of your annual income saved for retirement by age 30 and three times your income by 40. But those benchmarks encompass more than just your 401(k), and a healthy balance alone doesn’t necessarily mean you’re on track for retirement. Fidelity’s guidelines are intended to put workers on a path toward having 10 times their income saved by age 67, which the brokerage estimates can help support retirees’ lifestyle in retirement.

Here’s how to get a better sense of where you stand — and what to do if you’re behind.

A 401(k) can be a foundational part of your retirement savings, but it may be only one piece of the picture, alongside IRAs, taxable brokerage accounts and health savings accounts.

As a general rule of thumb, Melchiorre recommends investing at least 15% of your income for retirement across all of your investment accounts, including any 401(k) contributions from your employer.

To get a better sense of whether you’re on track for retirement, it can also help to consider your overall net worth, says Adam Vega, a CFP and managing partner at Avance Private Wealth Management. Net worth is the value of assets such as your home, investments and savings, minus debts such as a mortgage or student loans.

By age 40, Vega likes to see someone’s net worth approaching two to three times their annual income. Equally important, he says, is whether that number is moving higher.

“Someone who has built substantial home equity and paid down debt may have a much stronger financial position than their 401(k) balance alone suggests,” says Vega.

These benchmarks are only rough guides. How much you’ll ultimately need depends on factors including when you plan to retire and how much you expect to spend, he says.

That said, 401(k)s have some unique advantages for workers trying to build their retirement savings. In 2026, workers can contribute up to $24,500 to a 401(k), compared with $7,500 across traditional and Roth IRAs. And many employers will match at least some of what workers contribute.

But it pays to start as early as you can. The sooner you invest, the more time your portfolio has to grow at a compounding rate.

For example, a 22-year-old who invests $250 a month would have about $953,680 by age 67, based on a hypothetical 7% rate of return, according to Make It’s compound interest calculator. A 40-year-old who starts investing the same monthly amount at the same rate of return would have $240,672 by age 67 — about one-quarter as much.

To reach roughly the same $954,000 balance by age 67, the 40-year-old would need to invest about $990 a month. That may be a steep increase, but your 40s can also be a point when you have more room in your budget to save. As expenses such as college or other debts are paid off, some of that money can potentially be redirected toward retirement, Vega says.

“The biggest mistake is assuming it’s too late and getting discouraged to start,” Melchiorre says. Instead, he recommends contributing what you can and gradually increasing your savings rate over time.