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Average 401(k) Hits $351,242 in 2026 as One in Five Accounts Tops $1 Million

Large, high‑balance accounts lift averages despite medians showing typical savers hold far smaller amounts.

Overview

  • Empower’s analysis of more than five million 401(k) accounts, published in August 2026, reports an average balance of $351,242 and an 11.2% year‑over‑year rise that equals about a $36,000 gain.
  • Empower’s age breakdown shows balances rise through midlife with average 401(k) balances in the 50s reaching roughly $1,073,368 and about one in five Empower accounts holding at least $1 million.
  • Federal Reserve Survey of Consumer Finances data for households aged 45–54 show a household average retirement balance of $313,220 and a median of $185,000, which highlights a wide gap between mean and typical holdings.
  • The data reflect a common lifecycle pattern where balances grow from the 20s into the 60s and then fall in the 70s and 80s as retirees make withdrawals.
  • Rising inflation and worries about Social Security trust‑fund projections are prompting some people to pause contributions, which could reduce future preparedness and increase reliance on private savings.