Turning 40 comes with a few rude awakenings, and the size of your 401(k) is usually one of them. With retirement creeping closer, many people start wondering if they have saved enough. But averages can mislead, and medians paint a clearer picture.
Let’s unpack what 401(k) savings really look like in your 40s using the latest data:
Empower's $370K Average Doesn’t Mean Most Have That
Empower reports a hefty $370,879 average 401(k) for savers in their 40s, but that number includes high earners with decades of contributions. It is not what the typical American sees when logging into their retirement account. Big outliers skew the picture, giving a rosier view than reality for most workers.
When we look past the top savers, the median balance at Empower is $154,212. That is a huge drop from the average, and it reveals how wide the savings gap really is. For many in their 40s, six figures feels out of reach.
Goumbik / Pexels / Fidelity’s data from Q1 2025 is less dramatic. Workers aged 40 to 44 have an average 401(k) of $105,900, and those aged 45 to 49 have $146,700.
Their combined average sits around $129,400. This is a number that feels a bit more believable for mid-career earners juggling bills and kids.
Still, Fidelity’s averages don’t reflect every type of retirement savings. They focus strictly on 401(k) accounts, leaving out IRAs and pensions. That might partly explain the lower numbers, but it also highlights just how scattered retirement planning can be.
Vanguard’s Numbers Show the Starkest Gap
Vanguard reports the lowest numbers for this age group. For savers aged 35 to 44, the average 401(k) sits at just $91,281. But the median? A sobering $35,537. That figure makes it clear that plenty of Americans are far behind on retirement goals.
Low medians suggest that many people in their 40s still haven’t gained serious ground on saving. Housing costs, childcare, debt, and wages that don’t rise fast enough all compete with retirement as priorities. And it shows.
If your 401(k) balance feels small next to those big averages, you are not alone. The median, which shows the middle point in savings, often tells a clearer story. That $154,212 from Empower and $35,537 from Vanguard reveal how widely savings levels vary depending on income and job history.
Pixabay / Pexels / Fidelity suggests having three times your salary saved in a 401(k) by age 40. For someone making $70,000, that is $210,000. Most savers are not even close.
The median balances across the board say most are well under that goal, even if they have been working for two decades.
This benchmark is not meant to shame. It is a guideline. But it does show how many Americans face a shortfall in retirement savings, even with steady work. Meeting that 3x mark can feel like chasing smoke for households juggling real-life expenses.
Why Empower’s Number is So Much Higher
Empower’s $370K average might sound great, but it includes people with unusually high incomes or long-term investing habits. That is not most folks. If you have changed jobs a few times, had career breaks, or just started saving later, your 401(k) might look very different.
High averages make headlines, but they rarely match reality. They often reflect a small group of super-savers, not the broader experience of American workers in their 40s.
Once you hit your 40s, it gets harder to ignore your 401(k). But it is not too late to improve your balance. Catch-up means more than just adding a few dollars. It means aiming for 15% of your income, taking full advantage of employer matches, and rethinking how aggressively you invest.