Most People in Their 50s Have This Much in a 401(k). How Do You Stack Up Against Your Peers?

When a 401(k) balance starts to matter more than a bragging point, people in their 50s begin paying attention. This is the decade when retirement savings should be strongest and the stakes highest.

According to Empower data, the average 401(k) balance for people in their 50s is $635,320. That looks solid until you see the median balance of $253,454. The median is a better reflection of what a typical person in their 50s actually has because it is not pushed upward by a few very large accounts.

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People in their 50s are able to save more than younger workers. For 2026, the employee contribution limit for 401(k) plans is $24,500. Workers who have reached age 50 can contribute an additional $8,000 as a catch‑up contribution. That means someone in their 50s could contribute a total of $32,500 in 2026 if they take full advantage of both limits. Workers who are between age 60 and age 63 and whose plan allows it can add up to $11,250 in catch‑up contributions.

If you measure your progress by the average balance alone, it can feel like you are doing well. But the median shows that many people are far below that average. And when you think about retirement costs, the median becomes even more important.

The average U.S. household spends more than $78,000 a year, according to Bureau of Labor Statistics data released last month. A 401(k) balance of $253,454 would be gone in a few years without other income sources. That is reality for many people in their 50s who have not aggressively saved.

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So what can someone in their 50s do if they are below the median or feel behind?

For higher earners who already hit the annual contribution limits, some 401(k) plans offer a strategy called the mega backdoor Roth. This allows extra after-tax contributions that can be rolled into a Roth account for tax-free growth. It’s not available in every plan, but if yours allows it, it can let you sock away thousands more each year—well beyond the $32,500 limit. It’s one of the few legal ways to bypass Roth IRA income caps and shield more money from future taxes.

Look beyond just a 401(k) account. Some retirement investors are using fractional real estate investment through platforms like Arrived to build passive income from rental properties with as little as $100. That kind of diversification helps create a second income that does not depend solely on stock market returns.