When 401(k) Balances Peak: How Retirement Savings Change From Your 20s to 80
- Investopedia
Median 401(k) balances typically peak in workers’ 50s due to higher salaries, catch-up contributions and compounding growth. Balances often decline in the 60s and 70s as retirees withdraw funds, roll over accounts, or meet required minimum distributions. A shrinking 401(k) balance in retirement is expected and reflects the account’s purpose of funding retirement spending.
