How much have Millennials saved in their 401(k) plans in 2025?

The average millennial had about $67,300 saved for retirement, according to Fidelity Investments — a number that seems modest compared to the $192,300 of Generation

The story brightens when we look at contribution rates (including employer contributions), with millennials at about 13.3%, not far from the 15% recommended by financial advisors, and nearly 40% of savers increased their contribution rate in the past year. The generation that grew up during economic chaos is gaining more ground, although whether that is enough and can survive a period of economic uncertainty is an open question.

What does the average balance tell us, and what does it not tell us?

The general average hides a wide range within a generation. Millennials will range in age from 29 to 44 years old in 2025, meaning some are only a few years into their careers, while others are approaching middle age. Vanguard data for 2024 shows that people ages 25 to 34 averaged $42,640 in their defined contribution plans, while people ages 35 to 44 averaged $103,552.

The median figure, which is less affected by the higher numbers among the wealthy, shows that typical savings are more modest. Vanguard’s average for the 35-44 age group was just $39,958, suggesting that some higher balances are pushing up the average numbers. Figures from Transamerica, which focuses on middle-class Americans, put the average retirement savings of millennials at $65,000, meaning half the generation has less than that.

Why so many millennials are playing catch-up

For those who see these numbers and feel left behind, it’s not as if economic conditions have always favored millennials. Older 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 the recession, and many of those who kept their jobs were earning stagnant wages for years.

Then there’s the student debt crisis that began to peak as millennials entered adulthood. Millennials collectively carry the largest number of student debts of all time (about 40%), and for years, many of them have prioritized paying off their loans over funding retirement accounts. The pandemic has added another disruption, as some millennials have tapped their 401(k)s during job losses, while others have paused contributions altogether.

How can you bridge the gap?

If you’re behind on saving for retirement, you still have time. Not only do you need to save more, but you can look for ways to save smarter. For example, about a fifth of millennial savers (18.3%) now use a Roth 401(k), which offers tax-free withdrawals in retirement — a step workers take if they expect to be in a higher tax bracket later.

Fidelity suggests saving about three times your annual salary by age 40. If you’re a late bloomer, increasing your contribution rate by 1% per year can make a big difference over time — especially since you’re decades away from retirement.

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, had to take on record student debt, and weathered the pandemic just as they reached their peak earning years.

You can make progress by maxing out any employer matches, increasing contributions by a percentage or so each year since you’re less likely to notice, and letting compounding do its work. Like many millennials, you may have started late, but with 20 to 35 years to go until retirement, your retirement saving marathon is far from over.