How Much Have Different Generations Saved for Retirement? A Breakdown by Age Group

Understanding the Retirement Savings Gap

Retirement savings tell an interesting story about how Americans prepare for their golden years. By examining 401(k) account balances across different generational cohorts, we can see clear patterns in how savings accumulate over time and where significant gaps exist between age groups.

The data reveals that retirement account balances don’t grow indefinitely—they tend to plateau around age 55, when many workers transition toward retirement or begin drawing down their savings. This creates a meaningful distinction between those still in their peak earning years and those approaching or already in retirement.

Fidelity’s Comprehensive View of Retirement Accounts

Fidelity, which manages $16.4 trillion in assets across more than 50 million retirement accounts including 401(k)s, 403(b)s, and IRAs, provides valuable insights into these accumulation patterns. By analyzing both employer-sponsored 401(k) plans and individually-held IRAs, we get a complete picture of how different age groups are positioned financially.

It’s worth noting that 401(k) accounts function differently from IRAs—401(k)s typically come with employer matching benefits and are sponsored by employers, while IRAs are self-directed accounts opened through financial institutions. Together, they represent the bulk of Americans’ retirement preparation.

The Generational Breakdown: Where the Biggest Gaps Appear

Baby Boomers Lead the Pack

Americans born between 1946 and 1964 (currently ages 61-79) have accumulated substantially more retirement wealth than any other generation. Baby boomers average $249,300 in their 401(k) accounts, with an additional $257,000 saved in IRAs. This combined total of over $500,000 reflects decades of consistent savings and market growth.

Gen X Shows Solid Mid-Career Accumulation

The generation born from 1965 to 1980 (now ages 45-60) sits at an intermediate position. Gen X workers have built average 401(k) balances of $192,300 and accumulated another $104,000 across their IRA holdings. While substantial, these figures reveal a notable gap compared to their Baby Boomer predecessors—suggesting either later career entry, different market conditions, or varying savings rates.

Millennials Face Steeper Challenges

Those born between 1981 and 1996 (currently ages 29-44) demonstrate significantly lower accumulation. Millennials average just $67,300 in 401(k) accounts and $25,100 in IRAs. This generation’s retirement journey was disrupted by the 2008 financial crisis early in their careers, which clearly impacted their long-term accumulation trajectory.

Gen Z Still Early in the Saving Game

The youngest cohort, born between 1997 and 2012 (ages 13-28), naturally shows the lowest balances at $13,500 in 401(k)s and $6,700 in IRAs. However, this group has the longest time horizon to benefit from compound growth if they maintain consistent contribution discipline.

What These Numbers Mean for Your Retirement Planning

The disparity between generations underscores an important reality: your age group provides useful context for evaluating your own retirement readiness. While individual circumstances vary—some people prioritize modest retirement lifestyles while others aim for more substantial spending—knowing where you stand relative to your peers offers practical perspective.

The trajectory of 401(k) balance growth shows that early and consistent saving matters enormously. The decades-long accumulation advantage visible in Baby Boomer balances didn’t happen by accident; it reflects steady contributions and compound growth over time.