Are Americans Saving Enough? New 2026 Data on 401(k) Balances by Age

Given the current cost of living, saving for retirement is no easy task. And yet, it's clear that most retirees will need more than Social Security to comfortably get through retirement.

In March of this year, Fidelity Investments gathered data from 26,800 corporate defined contribution plans and 25.6 million participants to learn more about their average balance by age. Keep in mind, average balances tend to be higher than median balances because they include very high-income individuals. Here's what Fidelity learned:

Image source: Getty Images.

Data source: Fidelity Investments.

What these balances mean in real life

To get a better idea of the role a 401(k) retirement plan can play later in life, let's imagine you're 67 years old and have just retired at full retirement age (FRA). You receive $2,071 per month in Social Security benefits -- the average benefit amount in the U.S.

You plan for an annual return of 7% on the $258,800 you've saved through your 401(k) and have decided to withdraw 5% of the balance the first year and increase that amount by 2% annually. That's $12,940, or $1,078 per month. Once you add $1,078 to your Social Security benefits, you have $3,149.

Whether you must pay federal taxes on Social Security benefits depends on your marital status and combined income. Combined income equals half of your Social Security benefit, plus nontaxable interest, added to all other taxable income (such as money earned from a part-time job, pension, or annuity). If you're married and your combined income is over $44,000, you must pay federal taxes on up to 85% of your Social Security benefits. If you're single, you'll pay taxes on up to 85% of your benefits if your combined income exceeds $34,000.

If you live in Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, or Vermont, you may also have to pay state taxes on benefits, depending on your adjusted gross income (AGI).

It's not too late

If you're wondering when you can retire but believe you'll never have enough money, that's probably not true. If you find that you're behind, start small. Here are some ideas to get you started:

• Join an employer-sponsored retirement plan: Begin by investing 1% of your paycheck. Since you won't be paying taxes on those contributions, it's less likely your budget will miss those funds. Many employers offer a matching program, bringing your total contribution to 2%.
• Reduce expenses: Review your checking account and credit card statements. Find unused subscriptions and cancel them; cook at home; use public transportation (or carpool); and redirect those funds to your retirement account.
• Create side income: Earning extra money can be as easy as selling cupcakes for special events, watching children before and after school, tutoring, or selling items on eBay or Etsy.
• Delay retirement: For every year you delay claiming Social Security benefits (up to age 70), your monthly check grows by 8%. That means a $2,071 check at age 67 becomes $2,568.

Most big things in life feel impossible until you do them. The first step is to just get started.

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