Fidelity Investments reports 401(k) balances fall short of retirement targets

Fidelity Investments reports that average 401(k) balances for participants aged 50 to 54 are significantly below recommended targets. The average balance of $215,700 is $234,300 less than the company's guideline, which suggests individuals should accumulate six times their annual salary by age 50.

For a worker earning $75,000, the target would be $450,000. Data shows the median balance for workers aged 45 to 54 was $78,730, representing only about 0.8 to 1.0 times their annual salary. To bridge this gap, Fidelity suggests increasing contributions, delaying retirement beyond age 67, or postponing Social Security benefits.