How Much Should I Have in My 401(k) by Age? (Real Targets)
Fidelity's rule of thumb says: 1× salary by 30, 3× by 40, 6× by 50, 8× by 60, 10× by 67. The numbers are reasonable starting targets but they assume continuous full-time employment, average market returns, and Social Security on top. Here is how to use them and what to do if you are behind.
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Step-by-step
- 1
Calculate your "should have" milestone
Multiply your current salary by the multiplier for your age: 1× by 30, 2× by 35, 3× by 40, 4× by 45, 6× by 50, 7× by 55, 8× by 60, 10× by 67. A 40-year-old earning $90K should have roughly $270K. This includes 401(k), IRA, HSA, and taxable retirement-purpose accounts combined.
- 2
Calculate your actual position
Add up every retirement account: 401(k)s from current and old employers, traditional + Roth IRAs, HSA balance treated as future medical retirement, taxable brokerage earmarked for retirement. Do not include emergency fund, college savings, or home equity.
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If you are on track: keep contributing at 15% of gross
The standard recommendation is 15% of pre-tax salary going to retirement (combined 401(k) employee contribution + employer match + IRA). At average market returns, this rate hits the milestone targets. If your employer match is 5%, your personal contribution should be around 10%.
- 4
If you are behind: push to 20–25% temporarily
Catch-up math: each year of "behind" requires roughly 2 extra percentage points of contribution to recover by retirement. If you are 5 years behind at age 40, push contributions to 20–22% for the next decade. Painful but tractable; getting started later than 50 makes pure contribution-based catch-up very hard.
- 5
After 50, use catch-up contributions aggressively
IRS catch-up limits for 2026: extra $7,500/year on 401(k) (total $30,500), extra $1,000/year on IRA (total $8,000), extra $1,000/year on HSA. Maxing all three after 50 adds $9,500/year of new contributions on top of standard limits.
- 6
Get the full employer match — always
A typical 6% employer match (50% of first 6% you contribute, common) is roughly $5,400/year on a $90K salary. Missing it for 5 years costs $27,000 in direct contributions plus $30K+ of compound growth. This is the highest-return financial move available to most employees.
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Re-evaluate every 2 years, not constantly
Markets create temporary mismatches with milestone numbers. A bear market in your 50s may temporarily push you "behind" — that is not the time to panic-shift to bonds. Stick to the contribution rate, let recovery happen.
💡 Tips
- If you change jobs, roll old 401(k)s into an IRA or your new employer plan — never cash out. A $50K early withdrawal at 35 costs 30%+ in taxes and penalties immediately, plus the lost compounding worth $400K+ by retirement.
- Maxing the 401(k) ($23,500 in 2026) before fully funding an IRA only makes sense if your employer plan has good low-cost index fund options. Some plans have only high-fee actively-managed funds — in that case, max IRA first, then return to 401(k).
- HSAs are the most tax-efficient retirement vehicle for most people: pre-tax going in, tax-free growth, tax-free withdrawals for medical (or after 65, ordinary income for any purpose). If you have a high-deductible plan, max it before fully funding 401(k) past the match.
FAQ
How much should I have in my 401(k) at 30?
Roughly 1× your annual salary (Fidelity guideline). Median for age 30 in actual data is closer to 0.4× salary, so most people are behind the guideline. If you started in your mid-20s with consistent contributions and employer match, hitting 1× by 30 is achievable on a $60K+ salary.
Is it too late to start saving for retirement at 50?
Not too late, but you have less time for compounding. Maxing 401(k) ($30,500/year) and IRA ($8,000/year) starting at 50 with average market returns produces roughly $1M by age 67 — meaningful but probably not full income replacement. Most late starters supplement with delayed retirement (working until 70) and aggressive Social Security claim timing.
Should I prioritize 401(k) or paying off the mortgage?
Almost always 401(k), especially up to the employer match. The match is a guaranteed 50–100% return on the year-1 contribution. Paying off a 5–6% mortgage is a 5–6% guaranteed return at best. Prioritize match → max IRA → max HSA → extra 401(k) → extra mortgage payments.
What is the average 401(k) balance for someone in their 50s?
Median balance for 50–59 in 2026: about $90K. Average: about $250K (skewed by high-balance accounts). The Fidelity target for 50 is 6× salary, so most Americans in their 50s are well below the recommended trajectory.
How do I catch up if I started late?
Five-step catch-up plan: (1) max employer match immediately, (2) increase savings rate to 20–25% of gross, (3) use catch-up contributions starting at 50, (4) plan to delay retirement by 2–4 years (huge impact — extra working years compound and shorten retirement), (5) plan to delay Social Security to age 70 for maximum monthly benefit.