The Average 401(k) Balance for a 50-Year-Old May Surprise You. How Do You Compare?

Once you’ve hit age 50, there’s a good chance you’ve been saving money for years, if not decades. But how much should you have stashed away by this age? Everyone’s financial situation is unique, which makes the ideal amount of money you should have saved difficult to pinpoint. Still, understanding how your peers are doing can help you determine if you’re on the right track.

In 2023, retirement plan participants between the ages of 45 and 54 had an average balance of $168,646 and a median balance of $60,763, according to Vanguard’s annual “How America Saves” report.

The Average 50-Year-Old’s 401(k)

Vanguard, Fidelity, and Empower regularly report average retirement account balances by age, but they all report on different numbers. Here’s what they’ve found:

• Vanguard’s 2023 report shows that retirement plan participants aged 45 to 54 had an average balance of $168,646. The median—half of the savers had more than this amount in their accounts, and half had less—was significantly lower at $60,763.
• Empower, using data from its financial management tool as of Dec. 31, 2024, reported that the average 401(k) balance for someone in their 50s is $592,285, while the median balance was $252,850.
• Fidelity Investments said in its “Building Financial Futures” presentation published in the third quarter of 2024 that the average balance for Generation X—those born between 1965 and 1980, including 50-year-olds—is $191,900.

How Much Retirement Savings You Should Have by Age 50

The amount of money you should have saved by age 50 depends on your goals and lifestyle. However, there are some general guidelines you can follow. Fidelity recommends having six times your salary saved by age 50, while T. Rowe Price suggests having three-and-a-half to six times your preretirement gross income saved.

When you hit age 50, retirement is (ideally) on the horizon, so it’s a good time to consider the 80% rule. This rule suggests you should aim to save enough to replace 80% of your preretirement. For example, if your salary is $80,000, you’d want to have saved $64,000 for each year of retirement to maintain your lifestyle. A financial advisor can also help determine how much you need to save based on your specific financial situation and goals.

Tips for Catching Up on Retirement Savings

If you’re in your 50s and fear that you’re behind on your retirement savings, you’re not alone. Roughly 20% of adults age 50 and older have no retirement savings, and 61% are worried they will not have enough money to support them in retirement, according to a survey from AARP published in 2024. If you’re concerned, here are three tips for catching up on retirement savings.

• Max out your 401(k). If your employer offers a retirement savings plan, take full advantage. An employer-sponsored retirement savings account comes with tax advantages and, most times, a company match. Even if you’re late to contributing, maxing out your 401(k) each year for the remaining years of your working years can make a big difference.
• Contribute to a Roth IRA. A Roth individual retirement account (IRA) lets you contribute after-tax dollars that you can withdraw tax-free in retirement. As long as your modified adjusted gross income (MAGI) doesn’t exceed the limits set by the IRS, you can contribute to these in addition to your 401(k).
• Tap into your home equity. Homes can be more than just a place to live: They can also offer liquidity in retirement. A Home equity line of credit (HELOC), home equity loans, and reverse mortgages are popular strategies for deriving income from your house.

The Bottom Line

How much you should have saved by age 50 varies based on your personal financial situation, goals, and lifestyle. But having three-and-a-half to six times your preretirement gross income saved is a good benchmark. If you’re late to saving, consider maxing out your 401(k), contributing to a Roth IRA, and exploring options to tap into your home equity.