401(k) Balance Benchmarks by Age
Fidelity recommends saving a multiple of your salary by each age milestone. These benchmarks assume you start saving at 25 and invest 15% of pre-tax income (including employer match) with a mix of stocks and bonds returning 7% annually after inflation.
| Age | Savings Multiple | At $60K Salary | At $85K Salary | At $120K Salary |
|---|---|---|---|---|
| 30 | 1x salary | $60,000 | $85,000 | $120,000 |
| 35 | 2x salary | $120,000 | $170,000 | $240,000 |
| 40 | 3x salary | $180,000 | $255,000 | $360,000 |
| 45 | 4x salary | $240,000 | $340,000 | $480,000 |
| 50 | 6x salary | $360,000 | $510,000 | $720,000 |
| 55 | 7x salary | $420,000 | $595,000 | $840,000 |
| 60 | 8x salary | $480,000 | $680,000 | $960,000 |
| 67 | 10x salary | $600,000 | $850,000 | $1,200,000 |
Source: Fidelity Investments retirement savings guidelines. Assumes starting at age 25, saving 15% of pre-tax income (including employer match), and a mix of stocks and bonds.
2025 401(k) Contribution Limits
The IRS adjusts 401(k) contribution limits annually for inflation. For 2025, the employee elective deferral limit is $23,500 for workers under 50. If you are 50 or older, you can contribute an additional $7,500 in catch-up contributions, bringing your total to $31,000. The total combined limit (employee + employer contributions) is $70,000 for those under 50 and $77,500 for 50+.
| Limit Type | Under 50 | 50 and Older |
|---|---|---|
| Employee Elective Deferral | $23,500 | $23,500 |
| Catch-Up Contribution | N/A | $7,500 |
| Total Employee Limit | $23,500 | $31,000 |
| Combined Limit (Employee + Employer) | $70,000 | $77,500 |
Source: IRS Notice 2024-80. Limits apply to traditional and Roth 401(k) contributions combined. Employer match contributions do not count toward the employee elective deferral limit.
How Employer Match Multiplies Your Savings
An employer match is an instant return on your contribution—no market risk required. The most common formula is 50% match on the first 6% of salary. On a $75,000 salary, contributing 6% ($4,500/year) gets you $2,250 in free employer money. Over 30 years at 8% returns, that match alone grows to over $255,000.
| Scenario | No Match | 50% Match (up to 6%) | 100% Match (up to 4%) |
|---|---|---|---|
| Your Annual Contribution | $6,000 | $6,000 | $6,000 |
| Employer Match (Annual) | $0 | $2,250 | $3,000 |
| Total Annual Input | $6,000 | $8,250 | $9,000 |
| Balance After 20 Years (8%) | $296,538 | $407,740 | $444,808 |
| Balance After 30 Years (8%) | $734,075 | $1,009,353 | $1,101,113 |
Assumes $75,000 salary, 8% annual return, monthly compounding, no salary growth. Employee contributes $6,000/year in all scenarios. Match calculations based on $75,000 salary.
The Power of Starting Early: Age Comparison
Compound interest rewards time more than contribution size. Someone who starts at 25 and contributes $500/month ends up with far more than someone who starts at 35 contributing $750/month—even though the late starter puts in more total dollars. Every decade you delay roughly doubles the monthly contribution needed to reach the same goal.
| Start Age | Monthly Contribution | Years Investing | Total Contributed | Balance at 65 (8%) |
|---|---|---|---|---|
| 25 | $500 | 40 | $240,000 | $1,745,504 |
| 30 | $500 | 35 | $210,000 | $1,148,310 |
| 35 | $750 | 30 | $270,000 | $1,101,113 |
| 40 | $1,000 | 25 | $300,000 | $951,026 |
| 45 | $1,500 | 20 | $360,000 | $890,238 |
Assumes 8% average annual return, monthly compounding, no employer match. The person starting at 25 puts in $240,000 total but ends up with $855,000 more than the person starting at 45 who contributes $360,000. Time beats money.
To explore whether converting some of your 401(k) to a Roth IRA makes sense, try the Roth conversion calculator. For a complete picture of your retirement readiness including Social Security and other income sources, use the retirement calculator.