Despite market fluctuations, Americans are putting more into their 401(k) accounts than ever. According to Fidelity Investments data, the average 401(k) balance in the second quarter of 2026 was $155,800, a 10% increase from Q1 2026 and a 13% uptick from the same quarter last year.
About half of U.S. workers participate in a 401(k) or similar worker-sponsored retirement plan, according to Fidelity, although availability is closer to 70%. Many employers will match your contribution up to a certain amount, usually between 3% and 6% of your salary.
How much should you put in a 401(k)
How much to put away for retirement is one of the most common financial questions people ask. There's no single "right" answer, but a good starting point is to contribute at least enough to your 401(k) to get the full employer match, if your company offers one.
That's part of your compensation package, so falling short of the match means leaving money on the table.
Experts recommend contributing 10% to 15% of your gross income to your retirement accounts, including employer contributions. If money is tight, you can contribute less, but if you're starting later or have fallen behind you may want to contribute more.
For example, if you earn $80,000 a year, contributing 10% would mean putting $8,000 annually, or about $667 per month, into your 401(k), before considering any employer match.
In addition, annual contribution limits for 401(k) plans can impact how much you're able to contribute.
For 2026, the standard limit for employee contributions to a 401(k) plan is $24,500, with an additional $8,000 catch-up contribution allowed for workers 50 and over.
If your plan allows, there is also a special "super" catch-up of $11,250 for workers 60 to 63.
What is employee matching?
A 401(k) is an employer-sponsored retirement plan and many employers contribute money to your account based on how much you set aside.
Employer contributions can be a percentage match, a dollar-for-dollar match or a partial match—say, 50 cents for every dollar you set aside.
The most common formula is a combination: Companies typically offer a full match up to 3% of an employee's salary, then a partial match of 50 cents for every dollar on the next 2%. It's rare for companies to match contributions above 5% or 6%.
More than 80% of account holders save enough of their paycheck to receive their company's full matching contribution, according to Fidelity. If you aren't in a position to do that, aim to boost your retirement contributions by 1% to 2% each year.
Some companies automatically raise your contribution rate each year. It's worth seeing whether your plan has an "auto-escalation" feature.
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IRAs: How to invest if you don't have a 401(k)
If your employer doesn't offer a 401(k) plan, or you have maxed out on it, there are ways to save for retirement on your own.
Many big banks and brokerages offer individual retirement accounts, or IRAs, that include a range of investments — such as individual stocks, bonds, index funds, mutual funds and CDs.
Like a 401(k), a traditional IRA can reduce your taxable income and you can set up automatic contributions from a checking or savings account. Unlike a 401(k), however, the account isn't tied to your employer and can follow you if you change jobs.
When shopping for an IRA, choose an account with commission-free trading, a variety of investment options and no minimum deposit requirement.
In 2026, the standard annual contribution limit for an IRA is $7,500, with an extra $1,100 catch-up contribution available for workers 50 and over.
If you're a younger investor or expect to be in a higher tax rate when you retire, a Roth IRA is taxed upfront, so your withdrawals are tax-free (as long as your account has been open for at least five years).
Could a gold IRA be part of your retirement portfolio?
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