The average rate of return on a 401(k) ranges from 5% to 8%. However, the typical 401(k) holds a mix of roughly 60% stocks and 40% bonds, so it’s also subject to the whims of the larger marketplace.

An average rate of return can mask losses over time, so what investors really want to keep an eye on is the actual rate of return, financial adviser Carlos Dias Jr. says. Kiplinger Save up to 74% ...

The average rate of return you receive depends on the amount of risk you are willing to take with your account. High Yield Savings Offers . Earn 4.10% APY** on balances of $5,000 or more .

What Average Rate of Return on 401(k) Can You Expect? iStock. Our evaluations and opinions are not influenced by our advertising relationships, but we may earn a commission from our partners’ links.

There's no one number for the best rate of return. Pinpoint what you’ll need in retirement and your time frame and derive what to expect from your 401(k) from there.

The average rate of return on a 401(k) ranges from 5% to 8%. However, the typical 401(k) holds a mix of roughly 60% stocks and 40% bonds, so it’s also subject to the whims of the larger marketplace.

Examining the average rate of return of the S&P 500 from 2000 through 2014, you can see how average returns don’t tell the full story of real money in Tom and Debbie’s pocket.

For the expected return, you decide to use the average annual return for the S&P 500 large-cap index. Between 1957 and 2023, the S&P 500 showed an annual average growth rate of 11.8%.

“Assuming your 401(k) balance is currently $100,000, it will grow to $320,713 if the constant annual rate of return is 6% and nothing is added to the account over 20 years,” says Mark Charnet ...