Quick Read
The median 401(k) balance of $38,176 reflects where most workers actually stand, while the $148,153 average is skewed by a small group of high-balance savers.
Balances grow sharply with age, from $7,300 for workers in their early 20s to $246,500 for those aged 60 to 64, with compounding rewarding long-tenured savers most.
Most workers contribute far below Fidelity’s recommended 15% savings rate, with the median deferral at just 6.8% amid a personal savings rate of only 3.9%.
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Vanguard’s most recent How America Saves report puts the average 401(k) balance at $148,153 and the median at $38,176. Both figures come from the same dataset of roughly 5 million defined contribution participants across 1,400+ plans. Only one of them describes what a typical American worker actually has in their retirement account.
The mean is an arithmetic average, while the median is the middle value. If ten workers have $5,000 each and one more walks in with $5 million, the median stays at $5,000 while the average leaps toward half a million. Something similar happens across the 401(k) system: a relatively small group of long-tenured, high-income savers pulls the average far above where the middle actually sits. The gap between $148,153 and $38,176 reflects that skew.
Why the Average Is the Misleading Number
The average has been climbing steadily. Vanguard’s balance figures moved from $129,157 in 2020 to $141,542, then dipped to $112,572 in 2022 before rising to $134,128 and $148,153 in the most recent reading. The median moved in the same direction on a much smaller scale, rising from $33,472 to $38,176 over the same period. Fidelity’s separate dataset of 53 million retirement accounts shows a similar average: $146,400 in Q4 2025, up 11% from a year earlier.
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A worker looking at the average and comparing it to their own balance will often conclude they are behind. A worker looking at the median will often conclude they are close to typical. Both readings come from the same underlying population. The average is doing more work for the highest-balance participants than for anyone else.
