Key facts
- Median 401(k) account balances reached record highs in 2025.
- Median 401(k) balances increased by 27% in 2025.
- The growth is attributed to increased contributions and strong market returns.
- The average 401(k) balance rose to $167,970.
- Vanguard released the 'How America Saves' report detailing these figures.
Median 401(k) account balances for Americans have reached record highs in 2025, marking a significant increase of 27% compared to the previous year. This surge in retirement savings is detailed in Vanguard's annual 'How America Saves' report. The report attributes the substantial growth to two primary factors: increased contributions from employees and strong returns within the financial markets. The average balance across all 401(k) accounts has now climbed to $167,970. This upward trend indicates a healthier financial outlook for many individuals planning for retirement. The data suggests a positive environment for retirement savings, driven by both personal financial habits and favorable economic conditions. The report's findings offer a snapshot of the current state of retirement preparedness among American workers, highlighting a period of notable financial recovery and growth in 401(k) portfolios.