401(k) Contributions Remain Steady for American Workers in Their 30s
American workers in their 30s appear to be consistently contributing to their 401(k) plans, even as market fluctuations have affected account balances this year.
According to Fidelity, the largest retirement planning provider in the country, which oversees more than 24 million 401(k) accounts, the latest quarterly analysis reveals average balances across different age groups for the three-month period ending March 31.
Here’s the average 401(k) balance for those in their 30s:
- 30-34 years old: $44,800
- 35-39 years old: $71,400
Fidelity’s data indicates that the first quarter of 2025 has been challenging, with average 401(k) balances dropping by about 2% for this age group.
Nevertheless, this demographic has been diligent in their savings efforts, with individuals aged 28 to 44 saving around 13.5% of their pre-tax income. Interestingly, the recommended saving rate is about 15%.
401(k) Savings Compared to Benchmarks
The Bureau of Labor Statistics suggests that the median income for full-time workers in their 30s ranges from $60,000 to $70,000, which may make it feasible for many individuals to save up to 40% of their earnings in one year.
It’s important to keep in mind that these figures pertain to overall retirement savings, meaning some individuals may have additional savings not fully reflected in their 401(k) balances.
Shawn Melby, a Certified Financial Planner in Nashville, points out that it’s common for people in this age range to find it difficult to fully optimize their retirement contributions. Life events in your 20s and 30s, like paying off student loans, starting families, or saving for a home can sometimes interfere with savings.
If you’re feeling behind, Melby suggests gradually increasing your 401(k) contributions, even by small amounts like $50. The aim is to maximize employer matches, often viewed as “free money” since employers add funds to your account when you contribute.
The advantage of contributing early is that those initial dollars have more time to benefit from compound interest.
