Why Knowing The Average IRA Balance Matters

Comparing your balance to average retirement savings benchmarks shows how balances tend to change as people move through their lives and can expose potential gaps before retirement gets too close.

For example, if you see that your savings are below the typical range for your age, you may increase contributions or reassess whether your investments align with your time horizon. And even if you’re well above the average, you still need a plan. Either way, an age-based benchmark can turn a question like “Am I saving enough?” into a more concrete financial review.

Knowing where you stand on average retirement savings also helps with decisions regarding housing costs, funding your child’s college education, retirement spending and how aggressively you need to save. Nonetheless, the average or median shouldn’t be a personal target by itself, but a warning sign or checkpoint when building or adjusting your retirement plan.

Traditional And Roth IRA Balances: Key Differences

You can gain tax advantages from Traditional and Roth IRAs, but at different times. Eligible traditional IRA contributions can reduce your current tax bill, while any investment growth is tax-deferred until withdrawn. Roth IRA contributions are made using after-tax dollars, allowing investment growth and qualified withdrawals in retirement to be tax-free. In other words, traditional IRAs give you tax benefits today, while Roth IRA tax benefits can be reaped in retirement.

This difference affects the after-tax value of each dollar in the account. A traditional IRA and a Roth IRA may not provide the same amount of spendable retirement income. If you withdrew $100,000 of fully taxable traditional IRA money and you owe 20% in taxes, only $80,000 would remain after federal taxes. A $100,000 qualified Roth IRA withdrawal would generally be tax-free.

The accounts also differ in how money must be withdrawn. For a traditional IRA, you generally have to take required minimum distributions once you reach a certain age, which can create taxable income even when you don’t need the money yet. Roth IRA withdrawals don’t have RMDs throughout your lifetime. This can make Roth dollars more flexible for managing income in retirement or leaving money invested longer.

Average IRA Balances By Age In 2026: Traditional And Roth

The table below shows the latest available IRS data on average traditional and Roth IRA balances by age. The figures reflect 2023 year-end account values (released in June 2026) and use age ranges as reported by the IRS.

In the per-decade discussion sections that follow, average balances are supplemented with 2026 median IRA figures from financial services company Empower, since the IRS doesn’t provide medians. The two sources cover different populations and time periods, so they are best used as complementary benchmarks rather than direct comparisons. Nonetheless, they still give you an idea of where your savings are compared to others your age.

The figures shown are the IRS’s average end-of-year fair market value of IRAs for taxpayers with the applicable type of IRA. The estimates are based on matched samples of Forms 1040, 5498 and 1099-R. It does not provide medians.

20s Age Group

• Average IRA balances:Those in their 20s fall under three age groups per IRS data. Average traditional IRA end-of-year fair market values for the two older age groups are $9,315 and $9,992, primarily. For Roth IRAs, amounts range from $7,242 to $12,586 across the two older brackets. Note that the under-20 group in the table is an outlier because it contains relatively few account holders, so a small number of large balances can push the average much higher.
• Median IRA balances:Empower reports median balances of $7,893 for traditional IRAs and $19,311 for Roth IRAs among people in their 20s.
• What you should focus on:Build a regular contribution habit and learn the difference between saving versus investing. Start early and don’t worry too much about reaching a specific balance.
• What impacts IRA savings:Entry-level income, student loans, rent and emergency-fund needs can limit how much is available for an IRA.
• What else to know:A relatively small balance is acceptable because your money has decades to compound. Don’t forget to build a robust emergency fund so your plans are not derailed by unexpected expenses.

30s Age Group

• Average IRA balances:For age bracket 30 under 35, the IRS reports average traditional IRA end-of-year fair market values of $19,079, and $20,964 Roth. For 35 under 40, average end-of-year fair market values increase to $38,689 for traditional IRAs and $29,871 for Roth.
• Median IRA balances:People in their 30s have a median traditional IRA balance of $15,451 and a median Roth IRA balance of $29,085, according to Empower.
• What you should focus on:Increase IRA contributions as your income rises. Set up percentage-based automatic transfers from your paycheck so lifestyle spending doesn’t absorb every income increase.
• What impacts IRA savings:Home purchases, mortgage payments, childcare, debt repayment and career transitions can compete with retirement savings.
• What else to know:Consider all retirement assets when evaluating your situation. If you have a modest IRA balance but a large 401(k), you’re generally faring better compared to someone who only has an IRA, even if theirs is above average.

40s Age Group

• Average IRA balances:IRS data show sharp increases in this age group. For the first half, 40 under 45, average traditional IRA end-of-year fair market values are $65,410, while it’s $40,494 for Roth IRAs. For age bracket 45 under 50, values rise to $106,831 and $46,131.
• Median IRA balances:Empower’s median figures for people in their 40s are $42,427 for traditional IRAs and $40,749 for Roth IRAs.
• What you should focus on:Be more concrete in your retirement planning. Project the income you may need later and compare it with your existing assets. Calculate if your current savings rate can close the gap.
• What impacts IRA savings:Child’s college expenses, mortgages, caring for parents and other midlife obligations affect your savings even as your career and income progress.
• What else to know:This is a good time to review tax diversification. Having both pre-tax and Roth assets may give you more options for taxable income later.

50s Age Group

• Average IRA balances:For age bracket 50 under 55, the IRS reports average traditional IRA value of $149,406 and $54,572 average for Roth IRAs. Figures rise for the next bracket, 55 under 60, with $214,117 average for traditional IRA and $65,379 for Roth.
• Median IRA balances:Per Empower, savers in their 50s have a median traditional IRA balance of $140,597 and $50,820 Roth.
• What you should focus on:You’re nearing retirement, so you should have a clear idea on expected expenses, Social Security, taxes, health care and the age you plan to retire.
• What impacts IRA savings:These are potentially your peak earning years, but family obligations, debt and lifestyle inflation can continue to impact your savings.
• What else to know:You can make catch-up contributions starting age 50. In 2026, you can contribute an additional $1,100 to your IRA on top of the standard $7,500 annual limit. Take advantage of this provision to boost your retirement savings.

60s Age Group

• Average IRA balances:IRS data shows average traditional IRA end-of-year fair market values of $289,052 for the 60 under 65 bracket and $357,902 for 65 under 70. For Roth IRAs, the average balances are $72,027 and $90,028.
• Median IRA balances:Those in their 60s have a median traditional IRA balance of $262,614 and median Roth IRA balance of $61,221, according to Empower data.
• What you should focus on:Shift your retirement planning from accumulation to distribution. Think of how much can be withdrawn, from which accounts and the withdrawal order to ensure your savings last.
• What impacts IRA savings:Retirement stops new contributions, so the timing of retirement and Social Security have major effects on your finances.
• What else to know:You can claim Social Security starting age 62, but waiting longer increases the monthly benefit up to age 70. Consider this in your retirement planning.

70+ Age Group

• Average IRA balances:The IRS groups everyone age 70 and older, with an average traditional IRA end-of-year fair market value of $334,461. The average Roth IRA value is $134,039.
• Median IRA balances:Empower says people in their 70s have a median traditional IRA balance of $271,107 and $68,661 median for Roth. Those in their 80s have $232,477 traditional IRA and $78,667 Roth IRA median values.
• What you should focus on:Sustainability. How do you meet retirement spending needs without taking unnecessary tax or investment risk?
• What impacts IRA savings:Withdrawals, health care, gifting, market performance, housing decisions, long-term care and estate planning can affect balances.
• What else to know:Consider other tax implications. For example, Traditional IRAs are subject to required minimum distributions, typically at age 73 or 75. You won’t have lifetime RMDs for your own Roth IRA.

Factors Influencing Your IRA Growth

You and someone of your generation may have different IRA balances because savings and investments are influenced by more than age. Your income and contribution rate, plus how the market performs, are major factors in how quickly your retirement savings grow. Other aspects, such as fees, withdrawals, rollovers and how long you stay invested, influence the final balance. Always consider context when evaluating your savings progress.

Income Levels

The higher your income, the more money you have available to save. Basic expenses generally take up a smaller share of each additional dollar you earn, making it easier to save more. At the least, you should increase IRA contributions proportionally to any income rise. Be careful about lifestyle inflation. Always prioritize increasing your savings or investments before raising your standard of living. For example, instead of an additional dinner date or movie per week when you get a raise, use the money to boost your IRA.

Income also affects some of the tax benefits and eligibility requirements of your IRA. Those rules depend on your modified adjusted gross income, filing status and participation in a workplace retirement plan, but more on that later.

Contribution Rates

The IRS sets annual contribution limits for IRAs and other retirement plans. You don’t necessarily have to contribute the max, but you should contribute consistently. Regular contributions, however small, are better than large, intermittent ones. Automatic transfers made every payday can simplify this.

Your best tool is time. The longer your money is invested, the more it compounds.

Market Conditions

Note that even if you contribute consistently, your IRA balance can fluctuate with market conditions. Because IRAs can hold a mix of stocks, bonds, mutual funds, ETFs and other assets, changes in investment prices have a direct impact on the account balance. That’s why diversification and strategic asset allocation are important.

Your age and time horizon are crucial here, too. For example, if you’re younger, you have time to recover from market fluctuations, so you can be more aggressive with your investments. As you get close to retirement, you may need to pay greater attention to volatility and the risk of withdrawing during a downturn.

Contribution Limits And Tax Rules To Know

For 2026, the combined contribution limit for traditional and Roth IRAs is $7,500, with an additional catch-up of $1,100 if you’re 50 or older. Your contributions also generally can’t exceed taxable compensation for the year. Be careful not to contribute too much, as it can trigger a 6% excise tax for each year the excess remains in your account.

Traditional IRA contributions may be deductible, but it depends on your income and workplace retirement plan coverage. In 2026, the deduction phases out between $81,000 and $91,000 for single taxpayers covered by a workplace plan and between $129,000 and $149,000 for married couples filing jointly when the contributing spouse is covered. If the contributor isn’t covered but the spouse is, the phase-out range is $242,000 to $252,000. If neither of you participates in a workplace plan, these deduction phase-outs don’t apply. You also eventually face RMDs, which start at age 73 or 75 depending on what year you were born.

Roth IRA contributions are subject to different income limits. For 2026, the contribution phase-out range is $153,000 to $168,000 for single and head-of-household filers and $242,000 to $252,000 for married couples filing jointly. If you’re filing separately, you face a $0 to $10,000 phase-out range. These limits determine whether you can make a full direct Roth contribution, a reduced one or no contribution at all. As mentioned, the IRS updates these limits, so check your eligibility before contributing. It’ll also make it easier to decide how to divide your savings between traditional and Roth accounts.

How To Calculate If Your IRA Account Is On Track

Compare your current balance with the average and median figures. For example, say you’re 40 and have $50,000 in a traditional IRA. Your balance is less than the average ($65,410) but more than the median ($42,427) for your age group. That’s a useful starting point, but it doesn’t tell you the whole picture. To know if your IRA is on track, you also have to consider your other retirement savings.

One way to do that is to compare your total retirement savings with broader benchmarks. For example, Fidelity suggests having about one times your annual salary saved by age 30, three times by 40, six times by 50, eight times by 60 and 10 times by 67. Say at 40 you earn $90,000 a year; that puts your target at $270,000. Suppose further that you also have $180,000 in a 401(k) and $20,000 in other retirement investments; you have a total of $250,000 saved for retirement, which is fairly close to the three times benchmark. You can then focus on increasing your IRA, 401(k) or other investments to close the gap.

Finally, consider how much income your savings will need to provide in retirement. Social Security, pensions and other dependable income can cover part of your expenses. For example, if you expect to spend $60,000 per year in retirement and receive $25,000 from Social Security and a pension, your IRA and other savings would need to cover the remaining $35,000. This should give you a good idea of whether you are on track. Again, don’t just focus on your IRA. You may also use a retirement calculator to aid your financial planning.

How To Catch Up On IRA Savings

If your calculations indicate a shortfall, focus on your contribution rate, as this is where you have the most control. Increase automatic IRA contributions when cash flow allows. Aside from salary raises, you can use your bonuses to boost your savings. If you’re 50 or older, take advantage of catch-up contributions. You should also contribute at least enough to trigger the match in any employer-sponsored plan.

Next, examine your investments. Review diversification, asset allocation, fees and how much of your long-term retirement money is in cash. If needed, you may also delay retirement to allow more time to contribute and for your savings to compound.