An April 2025 Gallup poll found that 59% of Americans had funds in retirement accounts, such as 401(k) plans. However, only half of non-retirees thought they’d save enough for a comfortable retirement.
While knowing your retirement savings goal is important, you should also pay attention to how your money is accumulating over your working years so you don’t fall behind.
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A recent YouTube video from financial YouTuber Humphrey Yang discussed 401(k) account balances by age based on the Vanguard “How America Saves 2025” report. Find out how your savings stack up and get tips to get and stay on track for retirement.
Younger Than 25
- Median account balance: $1,948
- Average account balance: $6,899
Yang discussed how retirement plan balances tend to be the lowest for people younger than 25 since they’re new to their careers and have had little time to contribute. The Vanguard data also showed that just 8.2% of employees in this age group made voluntary plan contributions.
While Yang didn’t suggest a specific amount to have by this age, he recommended contributing to a 401(k) as soon as possible, getting any available employer matches and properly controlling your finances. By starting young, you’ll have more time for contributions and gains to add up, making it easier to meet your retirement savings goal.
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Ages 25 to 34
- Median account balance: $16,255
- Average account balance: $42,640
At this stage, Americans are more settled into their careers and have had more time for their account balances to grow. The Vanguard data also showed that 82% of workers in this age group participated in 401(k) plans.
Yang’s advice was to avoid lifestyle inflation, prepare your finances for major purchases and lower your expenses so you can contribute 15% or more of your income. He added that a 20% savings rate may help you retire in 37 years, while an even higher rate is smart if you have an early retirement goal.
If you can increase your income, that helps to further speed up your progress.
Ages 35 to 44
- Median account balance: $39,958
- Average account balance: $103,552
As your 401(k) balance keeps growing from ages 35 to 44, it’s important to think about your planned retirement age. Yang suggested looking at your family situation and finances to decide whether an early retirement is realistic. For example, that’s likely easier for a couple with two incomes and extra margin than for a single person living in survival mode.
Offering a general target, Yang said, “One good goal to have at this age range is to have around three to four times your annual salary saved for retirement by the time you’re 44.”
He also suggested becoming debt-free (except for your mortgage) and contributing to your retirement at a higher rate. If you think you’ve fallen behind or you want to see how changing your annual contributions would shorten your time to retirement, try running through some scenarios using a compound interest calculator.
Ages 45 to 54
- Median account balance: $67,796
- Average account balance: $188,643
Yang discussed how Vanguard’s data showed a mediocre contribution rate for this age group and encouraged saving at a higher rate to reach your retirement savings goal. He also cited Fidelity’s target of stashing away seven times your yearly income by the time you turn 55.
Since this is a key time to set yourself up for financial security, Yang advised paying your mortgage off, which will leave you with extra cash to invest and reduce your financial strain. You should also address estate planning and know what you plan to spend in retirement.
While Fidelity offers income replacement ratio suggestions, Yang advised, “The better guideline, in my opinion, is just to figure out what your annual spending is, especially pre-retirement, and discount it by 20% as a conservative estimate.”
Ages 55 to 64
- Median account balance: $95,642
- Average account balance: $271,320
A common retirement savings target is 10 times your income by age 65. But Yang explained that Vanguard’s reported 401(k) balances fall short for people aged 55 to 64 who seek a comfortable retirement, unless they also have sufficient funds in other retirement accounts.
He recommended looking more into retirement withdrawal rates so you can tell whether your balance has you on track. If possible, increase the amount you’re saving to catch up or at least have a bigger cushion to supplement your Social Security and other income sources.
65 and Older
- Median account balance: $95,425
- Average account balance: $299,442
The Vanguard data showed that the 401(k) account balances didn’t grow as significantly for Americans who are of retirement age. Keep in mind they’ll typically also decline with age due to withdrawals.
While Yang didn’t address specific strategies to stretch your retirement savings, you can consider options like claiming Social Security later to get larger payments, finding a part-time job or downsizing your lifestyle.
You’ll also want to carefully consider your withdrawal rate, which Charles Schwab suggested could range from 4.2% to 10.9%, depending on your time horizon and asset allocation.
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This article originally appeared on GOBankingRates.com: Humphrey Yang: Here’s How Much You Should Have in Your 401(k) in 2025
