401(k) Balances Near Million-Dollar Milestones Amid Retirement Fears in 2026

Empower’s analysis of over five million 401(k) accounts shows the average balance is about $351,242, up roughly 11% year over year, with balances rising with age and peaking in the 60s; about one in five savers has at least $1 million, and the average for people in their 50s is around $1.07 million. The findings highlight the power of compounding and employer matches, which can significantly boost growth. Yet surveys show lasting retirement anxiety: many Americans expect to need about $1.2 million to retire, expect only about $500k or less on Day One, and worry about Social Security funding as projection suggests funds could be tighter by 2032, underscoring ongoing concerns about retirement readiness.