401(k) Account Averages Across Age Groups

In the second quarter of 2025, 401(k) account balances saw a significant increase, with the average balance reaching a record high of $137,800 in Fidelity's plans. This growth was driven by consistent savings by 401(k) plan participants and positive stock market performance.

Fidelity, a leading provider of 401(k) plans, recommends savings milestones based on age and salary. For instance, by age 30, one times salary should be saved, three times pay by age 40, six times by 50, eight times by 60, and 10 times by age 67. If a 50-year-old earns $100,000, they should have $600,000 saved. If their salary rises to $125,000 as they near retirement, they'll need $1.25 million saved by age 67.

The savings rate for Fidelity 401(k) participants remained strong at 14.2% in Q2 2025. Interestingly, 11.6% of savers increased their contribution rate during this period. The most popular match on Fidelity's platform is based on a 5% employee contribution rate. The employer contribution rate matches 100% of the first 3% of employee contributions, and 50% of the next 2%.

Two-thirds of Fidelity 401(k) participants had money invested in a target date fund or a managed account in this year's second quarter. The number of 401(k) millionaires in Fidelity's plans reached a record high of 595,000 in Q2 2025.

Balances increased for all age groups in Q2 2025. For those saving for 10 straight years, the average balance was about $437,700. For savers who've been investing in the same 401(k) continuously for 15 years, the average balance was around $585,600.

Starting in 2025, savers ages 60-63 can boost their catch-up contribution to $11,250, according to the IRS. This super catch-up provision should help workers near retirement make up for leaner years when they might not have contributed enough.

It's worth noting that in Germany, 401(k) plans do not exist in the retirement system, and average account balances by age group for Q2 2025 are not publicly available.

In times of market volatility, such as April 2025, only 5.5% of Fidelity 401(k) plan participants made changes to their asset allocation. Nearly eight in 10 (78.5%) of Fidelity 401(k) plan participants received a company match in the second quarter of 2025.

LaVigne, a retirement expert, emphasises that it's never too late to save for retirement. For 2025, 401(k) contribution limits for workers under age 50 have increased by $500 to $23,500. The catch-up contribution limit for workers age 50 and older remains unchanged at $7,500 for a total 2025 401(k) contribution limit of $31,000.

In conclusion, the second quarter of 2025 has been a promising period for 401(k) savings, with record high balances and a strong savings rate. As always, it's essential for individuals to consider their personal financial situation and goals when making decisions about their retirement savings.