This Is the Average 401(k) Balance for Gen Xers. How Does Yours Compare?

Gen Xers are a unique bunch. They were independent as kids, skeptical as young adults, and adaptable from a technology standpoint.

But Gen Xers have also faced their share of financial challenges and upheaval. They had to grapple with the early 1900s recession as young workers, and then the dot-com bust and 2008 financial crisis during their higher-earning years. Throw in the big shift from workplace pensions to self-funded retirement savings that occurred during Gen Xers' careers, and it's no wonder so many are sorely behind on building their nest eggs.

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Data from Fidelity reveals just how far behind Gen Xers are. The good news, though, is that some may still have time to catch up.

The average 401(k) balance among boomers Gen Xers

Last year, Fidelity reported that the average 401(k) plan balance among Gen Xers was $192,300. And that, frankly, is not a very encouraging number.

If we apply the popular 4% rule to that savings balance, it results in an annual income of about $7,700, not accounting for inflation adjustments. Even with Social Security, that's not a ton of money to fall back on.

How Gen Xers can make up for limited savings

If you're an older member of Gen X and you're unhappy with your retirement savings balance, one thing you may want to consider is working longer. For example, if you're 59 now with plans to retire at 62, rethink that. See if you can plug away until age 65 (which is when Medicare eligibility begins) or 67 (which would be your full retirement age for Social Security) and grow your savings accordingly.

Older Gen Xers may also want to consider delaying Social Security as long as possible. Waiting until age 70 gives you much larger monthly checks for life.

If you're a younger Gen Xer, you might still have time to boost your 401(k) nicely. There are plenty of Gen Xers who are still in their 40s with a good 15 years of contributions ahead of them.

Let's say you're 47 with $192,300 saved now. If you put $500 a month into your workplace retirement plan and your investments give you an 8% return during that time, which is a bit below the stock market's average, you'll be looking at a total balance of about $773,000 by age 62, which is the earliest point to sign up for Social Security. That accounts for growth on your $192,300 as well as future contributions.

The average 401(k) balance today isn't great for older Gen Xers. Younger Gen Xers who have close to $200,000 saved may not be in dire shape, but may need to ramp up in the coming years to avoid a shortfall.

No matter the shape of your 401(k), it's important to be flexible and adjust your plans if your retirement savings total isn't where you need it to be.

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