How much money Americans in their 50s have in their 401(k)s

Workers in their 50s are consistently contributing to their 401(k)s, but many still have balances that fall short of recommended retirement savings goals, according to a recent Fidelity report, which analyzed data from more than 24 million of its 401(k) accounts through March 31.

Here's how much workers in their 50s have in their accounts, on average:

• Ages 50 to 54: $193,100
• Ages 55 to 59: $236,200

Fidelity recommends workers aim to save six times their salary by age 50 and eight times by age 60. For someone earning the median income for that age group — roughly $67,000 — that translates to a target between $402,000 and $536,000.

Based on those targets, many 50-somethings are well behind. But that shortfall doesn't necessarily reflect a lack of effort. Gen Xers — who make up most of this age group — have an average savings rate of 15.4%, according to the study, slightly above Fidelity's recommended 15% rate.

And 401(k) balances only tell part of the story. Fidelity's benchmarks are based on total retirement savings, which can also include individual retirement accounts, brokerage accounts, pensions or inheritances, so total retirement savings for people in their 50s could be a lot higher.

Even so, for workers who got a late start or faced setbacks along the way, it can be difficult to close the gap — especially if retirement is just around the corner.

How to catch up on retirement savings in your 50s

If you're behind on retirement savings, “the worst thing you can do is nothing,” says Melissa Caro, a certified financial planner in New York City.

“Start with a full financial assessment: List your savings, income, debt and what you actually spend,” she recommends. From there, you can identify where to cut back or earn more, and redirect the extra cash into retirement accounts.

“Every dollar you free up from subscriptions, lower cell plans or side gigs needs to be redirected into your retirement accounts — especially catch-up contributions,” Caro says. Workers 50 and older can contribute an additional $7,500 on top of the $23,500 401(k) limit in 2025. They can also contribute an extra $1,000 to an IRA beyond the $7,000 standard limit.

Even small increases in your contributions can make a big difference. For example, if you start with the average 401(k) balance of $193,100 at age 50 and contribute $200 a month with a 7% annual return, your savings could grow to about $711,000 by age 67.

However, whether those savings are enough will depend on your personal goals. Some savers may need to rethink their retirement plans, perhaps with the help of a financial planner. That could mean delaying retirement, reducing living expenses to allow for higher contributions or easing into retirement with part-time work.