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.
- 3
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.
Disclaimer. This guide is for general educational and informational purposes only and is not financial, tax, retirement, or investment advice. Projections are estimates based on the assumptions you provide; markets, tax law, and contribution limits change over time. Consult a licensed financial advisor or tax professional before making retirement decisions. Read our editorial policy.