At age 60, you're not too far from retirement. In fact, the average retirement age is 61, although there are plenty of Americans who continue working into their late 60s and beyond.
It's always important to know whether you're on track with your retirement savings. That's especially true as you reach your 60s, since you're getting close to the end of your career. If you're trying to figure out where you stand, you'll find data on the average 401(k) balance below, plus some tips on what to do if you need to save more.
The average 60-year-old's 401(k) balance
The average 60-year-old has $70,000 to $210,000 in their 401(k). Why such a wide range? There are two recent sources with a fairly large difference:
- Vanguard reported that Americans ages 55 to 64 have a median 401(k) balance of $70,620 and an average balance of $232,710 in How America Saves 2023.
- A 2024 Empower article reported that Americans in their 60s have a median 401(k) balance of $209,382 and an average balance of $555,621.
The median balances are likely a more accurate representation of the overall average. When there's a big difference between a median and an average, it's because outliers are having an outsized impact on the average. In this case, people with very high 401(k) balances bring up the average quite a bit.
A popular guideline on retirement savings is to save eight times your salary by age 60 and 10 times your salary by 67. Many 60-year-olds are likely well behind that guideline, based on the recent data. To be fair, some Americans also have other forms of retirement savings, such as individual retirement accounts (IRAs).
What to do if you're behind on your retirement savings
Even at 60, there's still time to make significant contributions to your retirement savings. If you feel like you won't have enough money to retire, here's what you can do.
Max out your 401(k) contributions
The 401(k) contribution limit is $23,000 in 2024. But one of the advantages of being 50 or older is that you can also make additional catch-up contributions of up to $7,500, for a combined limit of $30,500. If you can't contribute that much, try to at least put in enough to max out any 401(k) match your employer offers.
Contribute to an IRA, too
Just like 401(k) plans, IRAs allow you to save for retirement while saving on taxes. The contribution limit is $7,000 in 2024. When you're 50 or older, you can make additional catch-up contributions of up to $1,000, for a combined limit of $8,000.
Retire later
There are several financial benefits to delaying your retirement. By working longer, you'll be able to save more. You'll start withdrawing from your retirement savings later, and you can also delay taking Social Security. If you wait until age 70, you'll receive your maximum Social Security benefits.
Consider relocating or downsizing
Another way to make up the gap in your retirement savings is to reduce your cost of living. You could start looking into areas with a lower cost of living for after you retire -- some people even choose to retire abroad. If you want to stay in your current city, you could move to a smaller, more affordable home.
If you can max out your 401(k) and IRA, that's $38,500 in retirement savings per year, and potentially more if contribution limits increase. After five years, you'll have added $192,500 to your retirement. That money could also grow if you invest in stocks and bonds.
Most people can't max out all their retirement accounts, so don't feel bad if you aren't contributing that much. Just put in as much as you can. If you do that, combined with potentially working longer and cutting costs, you can still retire with financial security.
Alert: our top-rated cash back card now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.
FAQs
The average 60-year-old has a 401(k) balance of $70,000 to $210,000. A common rule of thumb is to have eight times your salary in retirement savings by age 60. If you're behind on yours, contribute as much as possible to your 401(k) and IRA, consider delaying retirement, and look for ways to cut costs when you retire.
What is the average 401k balance for a 60 year old? ›
The average 401(k) balance by age
| Age | Average 401(k) | Median 401(k) |
|---|
| 40s | $344,182 | $151,274 |
| 50s | $558,740 | $247,338 |
| 60s | $555,621 | $209,382 |
| 70s | $417,379 | $103,219 |
3 more rowsAccording to The Federal Reserve, the median retirement account savings for households between ages 55 and 64 is roughly $185,000. While this is a considerable amount of money, it's probably not enough to secure a comfortable retirement for most people.
How much money does the average 60 year old have? ›
According to the Fed's latest Survey of Consumer Finances from 2019, the median net worth of Americans between ages 55 and 64 is $212,500. The average net worth, which tends to skew higher due to high-earning outliers, is $1,175,900.
Can I retire at 62 with $400,000 in 401k? ›
If you have $400,000 in the bank you can retire early at age 62, but it will be tight. The good news is that if you can keep working for just five more years, you are on track for a potentially quite comfortable retirement by full retirement age.
What is a good amount of money to retire at 60? ›
By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary. By age 60, your retirement savings goal may be six to 11-times your salary. Ranges increase with age to account for a wide variety of incomes and situations.
Is $1000000 enough to retire at 60? ›
It's definitely possible, but there are several factors to consider—including cost of living, the taxes you'll owe on your withdrawals, and how you want to live in retirement—when thinking about how much money you'll need to retire in the future.
What is the average Social Security check? ›
Americans who earned lower-income wages while working will naturally get a lower Social Security check once they retire. As of March 2024, the average retirement benefit was $1,864.52 a month, according to the Social Security Administration.
What percentage of retirees have $2 million dollars? ›
According to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances, 3.2% of retirees have over $1 million in their retirement accounts, while just 0.1% have $5 million or more.
How many Americans have $300,000 in savings? ›
The poll also found that among those who have been saving for retirement, 6.7% have saved between $10,000 and $49,999, 12.6% have saved between $50,000 and $99,999, 12% have saved between $100,000 and $199,999, 9.9% have saved between $200,000 and $299,999 and 16.5% have saved $300,000 or more.
What do the top quartiles look like?
| Age Range | 90th Percentile Net Worth |
|---|
| 35-44 | $1.05 million |
| 45-54 | $1.974 million |
| 55-64 | $2.961 million |
| 65-74 | $2.997 million |
2 more rowsDec 27, 2023
To be considered wealthy at age 65 or older, you need a household net worth of $3.2 million, according to finance expert Geoffrey Schmidt, CPA, who used data from the 2019 Survey of Consumer Finances (SCF) to determine the household net worth needed at age 65 or older to determine the various percentiles of wealth in ...
What percentage of retirees have $4 million dollars? ›
According to a 2020 working paper from the Center for Retirement Research at Boston College, the top 1% of retirees—which a retiree with $4 million in assets would fall into—can expect to pay about 22.7% in state and federal taxes.
How long will $750,000 last in retirement at 62? ›
Drawdown and Spending
The money might last 25 years. Under the 4% method, investment advisors suggest that you plan on drawing down 4% of your retirement account each year. With a $750,000 portfolio, that would give you $30,000 per year in income.
Is $1500 a month enough to retire on? ›
While $1,500 might not be enough for non-housing retirement expenses for many people, it doesn't mean it's impossible to stick to this or other amounts, such as if you're already retired and don't have the ability to increase your budget.
What is the ideal 401k balance by age? ›
However, the general rule of thumb, according to Fidelity Investments, is that you should aim to save at least the equivalent of your salary by age 30, three times your salary by age 40, six times by age 50, eight times by 60 and 10 times by 67.
How many people have $1,000,000 in retirement savings? ›
In fact, statistically, around 10% of retirees have $1 million or more in savings. The majority of retirees, however, have far less saved.
Can I retire at 60 with 300k? ›
£300k in a pension isn't a huge amount to retire on at the fairly young age of 60, but it's possible for certain lifestyles depending on how your pension fund performs while you're retired and how much you need to live on.
