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.
Key Takeaways
The average retirement plan participants between the ages of 45 and 54 had an average balance of $168,646 in 2023. The median account balance was $60,763Empower reported that the average 401(k) of someone in their 50s is $592,285, while the median is $252,850.Fidelity found the average 401(k) balance for Generation X is $191,900.If you’re behind on retirement savings, there are catch-up strategies you can implement, including maxing out your 401(k).
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 enou