You've probably seen those glossy retirement ads. You know the ones—a couple in their 60s laughing on a sailboat, looking like they haven’t a care in the world. It makes you wonder: How much do they actually have in the bank? If you’re checking your own Roth IRA and feeling a bit of "account envy," you aren't alone.
But here is the thing. Comparing yourself to a national average is often a losing game because the "average" person doesn't actually exist.
When we talk about the average Roth IRA balance by age, we’re looking at a moving target influenced by stock market swings, tax law changes like the SECURE 2.0 Act, and the simple fact that some people started at 22 while others didn't open an account until 45. Honestly, the numbers might surprise you—and not always in a good way.
The Reality of the Numbers: What’s Actually in Those Accounts?
Most people look for a single number to aim for. But averages are skewed by the "Elon Musks" of the world—people with massive balances that pull the mean upward. According to 2025 data from Fidelity and Vanguard, the median balance—the true middle point—is usually much lower than the average.
For instance, by late 2025, Fidelity reported that the average IRA balance (across all types) hit about $137,902. But if you're in your 20s or 30s, that number is basically meaningless to you.
Breaking It Down by Generation
Gen Z is actually crushing it lately. They’ve seen the power of the Roth and they are diving in. About 95% of Gen Z IRA contributions at Fidelity go straight into Roth accounts. They aren't messing around with traditional IRAs; they want that tax-free growth.
- The 20-Somethings (Gen Z): If you're under 25, your balance is likely around $7,000 to $8,000. It sounds small, but remember, the 2026 contribution limit is $7,500. You're just getting the engine started.
- The 30-Somethings (Late Gen Z / Millennials): This is where things start to diverge. The average for ages 25-34 hovers around $37,000 to $40,000. If you have $15,000, you’re actually right at the median.
- The 40-Somethings (Gen X / Millennials): By age 44, the average jumps to nearly $91,000. This is the decade where "lifestyle creep" usually tries to kill your savings, but it's also when compounding starts to look like actual magic.
- The Pre-Retirees (Late Gen X / Boomers): For those aged 55 to 64, the average climbs to $244,750.
Why is the gap between 40 and 60 so huge? It’s not just more contributions. It’s twenty years of market growth on a larger principal. If you have $100k at 45 and don't add another cent, a 7% return turns that into $400k by 65. That’s why starting early is basically a cheat code.
Why Average Roth IRA Balance by Age Varies So Much
One major reason your balance might look different than your neighbor's is the contribution limit. Unlike a 401(k), where you can dump $23,500 (or $24,500 in 2026) per year, a Roth IRA is capped.
For 2025, the limit was $7,000. In 2026, it moves up to $7,500.
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If you’re 50 or older, you get a "catch-up" contribution. In 2026, that means you can put in $8,600 total. Because these limits are relatively low, the Roth IRA is rarely a person's only retirement account. Usually, it's a sidecar to a 401(k). This is why Roth balances often look lower than 401(k) balances—you simply aren't allowed to put as much in.
Expert Insight: Many high earners actually have $0 in a Roth because they make too much money to contribute directly. As of 2026, if you're single and make over $165,000, you're phased out. This leads many to use the "Backdoor Roth" strategy, which is a bit of a legal loophole that keeps the Roth relevant even for the wealthy.
The "Median" vs. "Average" Trap
If I have $0 and my friend has $200,000, our "average" is $100,000.
Does that mean I'm doing well? No. It means my friend is doing great and I'm broke.
Vanguard’s How America Saves 2025 report highlights this perfectly. While the average balance for 55-64 year olds is nearly $245k, the median is closer to $87,500. That is a massive difference. Most people have less than $100,000 saved in these accounts as they approach retirement.
If you have $50,000 in your Roth IRA at age 40, you might feel behind because the "average" is higher, but you're actually ahead of more than half of your peers. Perspective is everything.
What Really Influences Your Growth?
It’s easy to blame your salary, but data shows that consistency and asset allocation matter more over 30 years.
- The "Stay the Course" Factor: Fidelity's 2025 analysis found that "long-termers"—people who stayed in the same plan for 15 years—saw their balances explode. Women in this category, for example, saw their average 401(k) balances cross $500,000 for the first time in 2025. The same logic applies to your Roth.
- The Risk Factor: Younger savers are taking more risks. About 67% of Vanguard participants are now in "professionally managed" allocations, mostly Target Date Funds. These funds keep you aggressive while you're young and swap to "safe" bonds as you age. If you're 30 and 100% in cash or bonds inside your Roth, you're essentially burning money.
- The Tax Play: The reason the average Roth IRA balance by age is such a hot topic is the tax-free withdrawal. Every dollar in your Roth is worth about $1.25 to $1.30 of a 401(k) dollar because you don't owe Uncle Sam a penny when you take it out.
Actionable Steps to Beat the Average
Don't just look at the numbers and sigh. You can change your trajectory pretty quickly with a few specific moves.
- Automate the 2026 Limit: The 2026 limit is $7,500. That breaks down to **$625 a month**. If you can't do that, do $100. Just get it moving.
- Check Your "Lost" IRAs: Many people open a Roth at a bank or old brokerage and forget it. Consolidate them. It’s easier to track one $50,000 account than five $10,000 ones.
- Look Into the Backdoor: If you're over the income limit ($165k single / $246k married in 2026), talk to a tax pro about a Backdoor Roth conversion. It's how people with "too much money" still get the tax-free benefits.
- Rebalance Every Birthday: Once a year, make sure your Roth isn't accidentally 90% in one stock that had a good run. Diversity is boring, but it’s how you actually get to that sailboat retirement.
The average is just a benchmark. Your goal isn't to be average; it's to be prepared. If you're contributing anything at all, you're already doing better than the 45% of Americans who have no retirement savings at all. Stay consistent, ignore the noise of the daily market, and let time do the heavy lifting.
To get started today, log into your brokerage and set up a recurring transfer for the first of the month. Even if it's only $50, the habit of "paying yourself first" is what builds those six-figure balances over time. If you're already maxing out, check your asset allocation to ensure your portfolio isn't too conservative for your age.