It’s pretty common knowledge that older workers typically have better retirement savings. Well, they’ve had a lot more time to put money aside. In contrast, it’s understandable that younger individuals, who haven’t had much time in the workforce, often see lower retirement savings.
But just how much are people under 35 actually saving? Let’s dive into the numbers.
Amazingly consistent averages and median
It’s wise to treat these figures with some caution. They encompass a wide array of young people, from those just starting out with almost no savings to those in their 30s who may have skyrocketed in their careers and earnings. You can find numerical details scattered within the data.
That said, averages provide a useful baseline.
According to Vanguard’s 2026 How America Saves report, by the end of 2025, the average 401(k) balance for participants under 25 was around $7,259, in contrast to an average of $50,261 for those aged 25 to 34.
These figures align fairly well with those from Fidelity, another prominent retirement plan provider. They noted that as of March’s end, individuals aged 20 to 24 usually had about $7,700 saved in their 401(k), with those between 30 and 34 averaging around $51,700. Fidelity also shared that participants aged 25 to 29 averaged $26,600.
However, it’s worth noting that averages can be skewed by a handful of high numbers. Vanguard highlighted that, while the average for those under 25 is $7,259 and for those 25 to 34 is $50,261, the medians for these groups are actually $2,234 and $18,732, respectively. This indicates that half of the individuals in both groups have less than those median amounts in their 401(k)s.
Sure, 401(k) accounts aren’t the only means of saving for retirement, but many young people tend to prioritize these accounts. According to the Federal Reserve Board’s most recent survey from 2022, the average retirement savings for those under 35 in the U.S. stands at $49,130, while the median is $18,880.
Set goals and make a written plan
If you find yourself lagging behind your peers, don’t be too hard on yourself. There’s still time to close that gap. Focus on making smart and affordable investments. Hitting an above-average savings amount isn’t necessarily something to throw a party over, considering these averages might not even cover the retirement lifestyle most of us aspire to.
A 2026 study by Northwestern Mutual revealed that the average American feels they need about $1.46 million (in today’s value) for a comfortable retirement. It’s certainly a worthy target. The next logical step is to devise a savings plan that will lead you to that goal.
