The Average 401(k) Balance Is $155,800. Here’s What That Doesn’t Tell You.

The average 401(k) balance is slowly but surely creeping up, reaching $155,800 as of the second quarter of 2026, according to a recent report from Fidelity. This suggests that Americans are working harder to save for their future and making real progress.

But that doesn’t mean that if you’re doing better than the average, that you’re on track for a comfortable retirement, or that if you’re behind, you’re doomed.

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Retirement planning is highly individual. The amount you’ll need to retire depends on factors like your life expectancy, where you live, and how you plan to spend your time. Your Social Security benefits and any other income sources you expect to have in retirement matter, too.

Looking at averages can tell you how you’re doing compared to your peers, but it doesn’t tell you whether you’re on track to achieve your actual goals. To know that, you have to estimate how much you’ll need in retirement based on your own personal factors.

There are different ways to do this. One of the simplest approaches is to estimate your annual expenses for your first year of retirement, subtract any benefits you expect from Social Security, and then multiply that amount by 25. Keep in mind that inflation will drive up living costs over time, and account for it when estimating your future annual expenses.

Once you know your savings target, figure out how you’ll get there. A retirement calculator can help you with that. If you’re not able to set aside as much as you need each month, you may need to rethink your strategy, such as pushing your retirement date back a few months or years.