How Much Should I Have in My 401(k) at Age 55?

By age 55, you’re about a decade away from retirement. Many financial experts suggest having seven to eight times your annual salary saved by this age if you want to maintain a comfortable retirement. By 55 you still have time to benefit from compounding and catch-up contributions, but not much. Knowing the benchmarks, the potential savings strategies and your investment portfolio‘s growth potential is key help you finish strong.

A financial advisor can help you adjust your plan, maximize tax breaks and choose investments as you approach retirement.

Fidelity’s retirement savings guidelines suggest that by age 55, you should have seven to eight times your annual salary saved in all retirement accounts combined¹.

For example, if you earn $100,000 per year:

• Seven times salary = $700,000
• Eight times salary = $800,000

Yet real-world numbers tell a different story. According to Vanguard’s latest data, the average 401(k) balance for those aged 55 to 64 is about $244,750, while the median balance is just $87,571². That gap highlights how many savers fall behind ideal targets, and why planning matters more than ever in your mid-50s.

Age 55 marks the point where many workers begin thinking seriously about their desired retirement timeline, whether that’s at 60, 65 or later, and whether their current savings can support it.

At this age, your peak earning years may still be ongoing. You may have fewer expenses if children are out of the house or mortgages are close to being paid off. That combination can allow for powerful catch-up savings. 

It’s also important to note that age 55 is also when the IRS allows penalty-free 401(k) withdrawals if you leave your job (known as the Rule of 55), giving added flexibility in early retirement planning.

Still, a recent Fidelity report³ found that more than half of Gen Xers, those currently in their late 40s to mid-50s, are not on track for retirement. 

Meanwhile, nearly half of Baby Boomers, who are now in their early 60s to late 70s, also aren’t on track. 

At this stage, lagging too far behind could require tradeoffs like delaying retirement, downsizing housing, or tightening lifestyle expectations. Hitting key benchmarks now can help preserve both your flexibility and confidence in your financial future.

Let’s say you’re 55 and earning $100,000 annually. If you’ve saved $500,000 so far in your 401(k), you’re short of the 7 times benchmark ($700,000), but not hopelessly behind. With 10 to 12 years left until full retirement age (67), you still have time to catch up.

Assuming a consistent annual return of 7% and maxed-out contributions, including catch-up, your balance could grow significantly. For instance:

• If you contribute $31,000 per year (the 2025 limit for those 50 and up), and earn a 7% return, your balance could grow to roughly $1.7 million by age 67.

This assumes consistent contributions and reinvestment over 12 years, demonstrating the power of disciplined saving even in your 50s.

As of 2025, workers aged 50 and older can contribute $23,500 in standard 401(k) contributions, plus $7,500 in catch-up contributions, for a total of $31,000 in elective deferrals

This catch-up provision gives those nearing retirement a chance to close the gap. 

It’s also important to note that starting in 2026, higher earners must make catch-up contributions to a Roth account inside their 401(k), which can offer tax-free growth in retirement. 

IRA contributions for those 50 and over are also capped at $8,000 in 2025 (including a $1,000 catch-up), and can complement your workplace plan.

If you haven’t hit the 7 to 8 times benchmark yet, you don’t need to panic. You have time to make a plan to address areas in which you’re falling short. Here are a few ways to accelerate your savings:

• Increase contribution rates to 20–25% of your income, if possible
• Take advantage of catch-up contributions in both 401(k)s and IRAs
• Delay retirement by a few years to allow savings to grow
• Reevaluate your investment allocation to ensure you’re balancing growth with risk
• Use windfalls, such as bonuses or tax refunds, for retirement savings

Even in your late 50s and early 60s, compound growth can still be powerful. Assuming a 7% return, saving $31,000 per year for the next 10 years equals over $425,000 in new contributions alone. 

This illustrates why it’s not too late to take decisive action in your 50s. Tools like SmartAsset’s 401(k) calculator can help you project your future balance and adjust course as needed.

By age 55, a good goal is to have seven to eight times your salary saved. Max out contributions, use catch-up options, and keep your portfolio focused on long-term growth. A financial advisor can help you fine-tune your strategy, lower taxes and prepare for retirement.

• A financial advisor can help you determine when is the best time retire and manage other factors to maximize your benefits. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• If you want to know how much your nest egg could grow over time, SmartAsset’s retirement calculator could help you get an estimate.

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