Empower Says Average 401(k) Hit $351,242, Reaching $1 Million in Workers' 50s

3 articles · Updated · The Independent · Aug 12

Empower’s study of more than 5 million retirement accounts found the average 401(k) balance rose 11.2% year over year to $351,242, with balances typically topping $1,073,368 in participants’ 50s.
One in five savers already has at least $1 million in a 401(k), and the study said balances generally climb from workers’ 20s through their 60s before falling in their 70s and 80s as withdrawals begin.
Employer matching and compounding were cited as the main drivers of that growth, with Empower warning that workers who miss the contribution threshold for a full match are effectively leaving money on the table.
The upbeat data contrasts with broader retirement anxiety: Schroders found Americans think they need about $1.2 million to retire comfortably, while just over half expect to start retirement with $500,000 or less.
Those concerns are being reinforced by high living costs that can crowd out savings and by Social Security’s projected 2032 funding shortfall, which could cut payments by as much as 22%.