Vanguard Puts Under-25 401(k) Balances at $7,259 and Ages 25-34 at $50,261

Q: Are high earners secretly distorting the truth about Gen Z's retirement crisis, making the typical saver feel unnecessarily behind?

Yes. Average retirement balances can make Gen Z look better or worse than the typical saver’s reality because a relatively small group of higher earners and longer-tenured workers pulls the averages up. The clearest evidence is the gap between average and median balances. Vanguard says workers under 25 had an average 401(k) balance of $7,259 at the end of 2025, but the median was only $2,234. For ages 25 to 34, the average was $50,261 while the median was $18,732. Federal Reserve data for Americans under 35 shows the same pattern: average total retirement savings of $49,130 versus a median of $18,880. That means the “typical” young saver has much less than the headline average suggests. But this does not mean the retirement crisis is fake. It means averages are a poor measure of what most young workers have. Many Gen Z workers are simply early in their careers, often with lower pay, interrupted job tenure, student debt, or limited access to workplace plans. The Fed found only 28% of adults ages 18 to 24 had a tax-preferred retirement account. The more useful takeaway is that many young savers are not uniquely failing; they are starting from a low base that is common for their age. Experts say the best benchmark is not just peer averages but steady saving relative to income, capturing the full employer match, using low-cost funds, and increasing contributions over time. Medians and income-based targets give a more honest picture than averages alone.

2 articles · Updated · Yahoo Finance · Aug 15

Vanguard’s 2026 “How America Saves” report said participants under 25 held an average $7,259 in 401(k)s at end-2025, while those aged 25 to 34 averaged $50,261.
Median balances were far lower—$2,234 for under-25s and $18,732 for ages 25 to 34—showing averages were lifted by a smaller group with much larger accounts.
Fidelity’s figures tracked closely, with average balances of $7,700 for ages 20 to 24, $26,600 for 25 to 29, and $51,700 for 30 to 34 as of late March.
Federal Reserve 2022 data put total retirement savings for Americans under 35 at an average $49,130 and a median $18,880, suggesting workplace 401(k)s account for much of young adults’ retirement assets.