How Your IRA Balance Stacks Up: Understanding Average Balances by Age in 2026

Are you saving enough for retirement? If you’re in your 50s, that question becomes increasingly urgent. Understanding where your retirement savings stand compared to peers—specifically, your average IRA balance by age—is critical for making informed decisions about your financial future. Let’s examine what the latest data reveals about retirement account balances and what they mean for your situation.

The Reality Behind the Numbers: Average vs. Median IRA Balances

When evaluating retirement preparedness, most people look at average balances, but this can paint a misleading picture. According to Fidelity’s analysis of 18.3 million individual retirement accounts, the average IRA balance reached $137,902 in the third quarter of 2025. For Generation X savers (those between 45 and 60), the figure stands at $120,273.

However, these averages don’t tell the complete story. A small number of exceptionally large accounts push these numbers higher, which is why the median—the middle point—provides a more accurate snapshot of where typical savers actually stand. Research from Transamerica shows that Americans in their 50s with middle-income levels have accumulated approximately $112,000 across all retirement accounts combined, which falls below Fidelity’s IRA-only average.

Vanguard’s 401(k) data illustrates this discrepancy even more starkly. Workers aged 55 to 64 showed an average balance of $271,320, yet the median was just $95,642. The same pattern holds true for IRAs, where many accounts are either modest or inactive. This distinction matters enormously when assessing your own retirement progress.

Why IRA Savings Vary So Dramatically Across People in Their 50s

The wide range in account balances stems from several interconnected factors. First, timing is everything. Someone who began contributing in their 30s benefits from decades of compound growth, while someone starting at 45 faces a significantly steeper climb—even if both save identical amounts annually. Fidelity’s age-based breakdown illustrates this progression: those aged 50 to 54 averaged $199,900, while the 55 to 59 cohort reached $244,900.

Income level creates another substantial divide. Data from the Federal Reserve’s 2022 Survey of Consumer Finances reveals that high-income households contribute roughly $6,862 annually to tax-advantaged accounts, compared to just $300 for lower-income families. This fivefold difference compounds over decades.

Rollovers represent another critical variable. Approximately 59% of traditional IRA holders have transferred funds from previous employer 401(k) plans. According to the Investment Company Institute, traditional IRAs containing rollovers maintain a median balance of $180,000, versus $50,000 for accounts without rollovers—more than three times the difference.

Additionally, life happens. Home purchases, children’s college tuition, caring for aging parents, and other competing priorities often demand significant resources during your 50s, precisely when retirement contributions could accelerate. This collision of responsibilities and financial opportunity frequently limits how much people can actually save.

Strategic Steps to Strengthen Your Retirement Position

So where should you stand? Financial professionals typically recommend having roughly six times your annual salary accumulated by age 50 across all retirement accounts. For someone earning $80,000, that translates to a $480,000 target. By age 55, that ratio increases to approximately eight times your salary.

It’s worth noting that most retirement savings live in employer-sponsored plans rather than IRAs, primarily because contribution limits heavily favor workplace accounts. In 2026, you can contribute up to $24,500 to a 401(k) but only $7,500 to an IRA. Those aged 50 and older can add catch-up contributions of $8,000 to a 401(k) and $1,100 to an IRA, bringing those totals to $32,500 and $8,600 respectively.

This structure means IRAs serve best as supplementary vehicles to complement, not replace, your workplace retirement plan. If you’re behind on your average IRA balance by age targets, prioritize maximizing employer 401(k) contributions first—especially if your employer offers matching funds—before focusing on IRA contributions. Understanding these dynamics helps you deploy limited savings more strategically during this critical decade.