Retirement: aka your “golden years.” You’ve worked hard for many decades and finally saved up enough to call it quits at your 9-to-5 job. For many Americans, saving money with a 401(k) retirement plan is one way to achieve financial security in their later years.
In fact, a 401(k) retirement savings plan is one of the most common vehicles to save for retirement. The average 401(k) balance for someone in their 60s hovers around $573,624, according to data from Empower.
If you’re lucky enough to work at a company with an employer match, you’ll want to take full advantage so you can get that number up even higher by the time you stop working. Here’s more on employer matches and what the typical one looks like in 2025.
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What Is a 401(k) Match?
An employer match is when your employer contributes a certain percentage to your retirement savings plan based on how much you contribute. For example, if you contribute 4% of your salary, your employer may offer a 4% dollar-for-dollar match on your contribution, for an 8% total contribution.
If your employer offers a 401(k) match, you’ll want to be sure to contribute at least the minimum required amount to take advantage of the full match. Otherwise, you’ll be leaving money on the table.
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What’s the Average 401(k) Plan Match in 2025?
In 2025, the average 401(k) plan match is 4% to 6% of an employee’s total compensation. The most common matching structure is a 50% partial matching contribution, up to 6% of the employee’s salary. This means that you’d need to contribute a greater percentage in order to qualify for the full employer match.
If they don’t offer a 100% dollar-for-dollar match, employers may offer a 25% to 50% partial matching contribution up to a determined percentage of the employee’s salary. It’s worth noting that employers may not contribute more than 25% of an eligible employee’s annual compensation.
Overall, you won’t want to miss out if you’re offered a 401(k) matching contribution. It’s free money that will compound over time and could make a huge impact on your financial future.
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Sources
Empower, “The average 401(k) balance by age“
Carry, “What Is The Average 401k Employer Match?“
This article originally appeared on GOBankingRates.com: What Is the Average 401(k) Plan Match in 2025?
