What Millennials Are Actually Putting in Their 401(k)s and Why It Could Change Your Retirement Plans

The average millennial had about $80,700 saved for retirement as of September 2025, according to Fidelity Investments. That looks modest next to Gen X’s $217,500 and boomers’ $267,900, though these generations, of course, have had longer to save.

The story brightens when we look at contribution rates (including with employer contributions), with millennials at about 13.4%, not far from the 15% that financial advisors recommend. The generation that came of age during economic chaos is gaining ground, though whether it’s enough and can hold through a period of economic uncertainty is an open question.

What the Average Balance Tells Us—And What It Doesn’t

The overall average masks a wide range within the generation: millennials span ages 30 to 45 in 2026. Empower’s October 2025 data, which is broken down by decade, shows 30-somethings averaged $211,257 in their 401(k)s, while 40-somethings averaged nearly double that: $419,958.

The median figure, which is less influenced by outlier high numbers among the well-to-do, shows that the typical savings are more modest. For 30-somethings, it was $81,441. For 40-somethings, it was $164,580. This suggests that a few high balances are pulling up the average figures. Transamerica’s figures, which focus on middle-class Americans, put the median millennial retirement savings at $65,000—meaning half the generation had less than that.

Why Many Millennials Are Playing Catch-Up

For those who see these figures and feel behind—it’s not as if economic circumstances were always in millennials’ favor. The oldest millennials entered the workforce around 2003, only to face the Great Recession just a few years later. At one point, more than 15% of millennials were unemployed during that downturn, and many who kept their jobs had wages that were stagnant for years.

Then there’s the student debt crisis that was starting to crest just as millennials were entering adulthood. Millennials collectively hold the most student debt of any generation (about 40%), and for years, many prioritized paying down their loans over funding retirement accounts. The pandemic added another disruption: some millennials tapped their 401(k)s during job losses, while others paused contributions entirely.

How You Can Close the Gap

If you’re behind on saving for retirement, you still have time. You don’t just need to save more but can look for ways to save more smartly. For example, about a fifth (18.3%) of millennial savers are now using Roth 401(k)s, which offer tax-free withdrawals in retirement—a move workers take if they expect to be in a higher tax bracket later.

Fidelity suggests having about three times your annual salary saved by 40. If you’re behind, boosting your contribution rate by even 1% per year can make a significant difference over time—especially as you’re decades away from retirement.

The Bottom Line

If you’re a millennial with less saved for retirement, you’re not alone. Context matters: You’re part of a generation that launched their careers into a recession, has had to carry record student debt, and navigated a pandemic just as it hit peak earning years.

You can make progress by maxing out on any employer matches, increasing contributions by a percent or so each year, as you’re less likely to notice the difference, and letting compounding do its work. Like many millennials, you may have started behind, but with 20 to 35 years until retirement, the marathon of saving for retirement is far from over.