Average IRA Balances Rise for 50-Somethings, But Median Values Reveal Stark Inequality by 2026

Fidelity's analysis of 18.3 million IRAs shows the average balance for Americans in their 50s reached $199,900 (ages 50–54) and $244,900 (55–59) by Q3 2025, driven partly by rollovers and early savers. However, median figures reveal a wider wealth gap: Transamerica reports middle-income workers in their 50s hold about $112,000 across all retirement accounts, while Vanguard data show a median 401(k) balance of $95,642 for those 55–64—far below the average. High-income households contribute roughly $6,862 annually to tax-deferred plans versus $300 for lower earners, per Federal Reserve 2022 data. Rollovers significantly boost IRA balances: accounts with 401(k) transfers have a median of $180,000, over three times those without. Experts advise saving six times one’s salary by age 50, rising to eight times by 55. With 2026 IRA contribution limits at $7,500 ($8,600 with catch-up), most retirement savings occur in workplace plans, where limits are higher ($24,500; $32,500 with catch-up).