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.
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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.
How much does an average 60 year old have in a 401k? ›
Average and median 401(k) balance by age
| Age | Average Account Balance | Median Account Balance |
|---|
| 35-44 | $76,354 | $28,318 |
| 45-54 | $142,069 | $48,301 |
| 55-64 | $207,874 | $71,168 |
| 65+ | $232,710 | $70,620 |
3 more rowsFeb 6, 2024
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 the average amount a 60 year old has saved for retirement? ›
Median retirement savings balance by age
| Age group | Median retirement savings balance amount |
|---|
| 45-54 | $115,000. |
| 55-64 | $185,000. |
| 65-74 | $200,000. |
| 75 and older | $130,000. |
2 more rowsMay 7, 2024
In fact, statistically, around 10% of retirees have $1 million or more in savings. The majority of retirees, however, have far less saved.
Is $1000000 enough to retire at 60? ›
So, can you retire at 60 with $1 million, and what would that look like? It's certainly possible to retire comfortably in this scenario. But it's wise to review your spending needs, taxes, health care, and other factors as you prepare for your retirement years.
Can I retire at 60 with $100,000? ›
“With a nest egg of $100,000, that would only cover two years of expenses without considering any additional income sources like Social Security,” Ross explained. “So, while it's not impossible, it would likely require a very frugal lifestyle and additional income streams to be comfortable.”
Is $600,000 enough to retire at 60? ›
Is $600k enough? As the table suggests, while $600k is generally sufficient for a comfortable retirement with annual spending up to $40,000, it may fall short if annual expenses exceed this threshold.
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 a good amount of money to retire with at 62? ›
While the average retirement age is 61, some Americans choose to retire at 62. You need to save less than $1 million to retire at this age. The average American can't afford to retire at 62 comfortably. A financial advisor can help you plan your dream retirement and create a financial plan to get you there.
How much should I have saved for retirement by age 60? We recommend that by the age of 60, you have about eight times your current salary saved for retirement. So, if you earn $75,000 a year, you would have between $525,000 to $600,000 in retirement savings by 60.
What is the average nest egg at retirement? ›
Key Points. The median retirement savings for American households is $87,000. Median retirement savings for Americans younger than 35 is $18,800.
What is the average Social Security check? ›
Social Security offers a monthly benefit check to many kinds of recipients. As of May 2024, the average check is $1,778.24, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.
What is considered wealthy in retirement? ›
Super wealthy (99th percentile): $16.7 million. Wealthy (95th percentile): $3.2 million. Well off (90th percentile): $1.9 million. Middle class (50th percentile): $281,000.
Can you live off interest of 1 million dollars? ›
Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.
What does the average American retire with? ›
Data from the Federal Reserve's most recent Survey of Consumer Finances (2022) indicates the median retirement savings account balance for all U.S. families stands at $87,000.
What is the max 401k for 60 year old? ›
The amount you can contribute to a 401(k) plan is controlled by the IRS. For 2024, your personal contributions cannot exceed $23,000 or $30,500 if you are age 50 or older. Other limits also apply, including the amount your employer can contribute.
What is a good 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 much does the average person retire with in a 401k? ›
The average 401(k) balance by age
| Age | Average 401(k) | Median 401(k) |
|---|
| 30s | $160,517 | $69,718 |
| 40s | $344,182 | $151,274 |
| 50s | $558,740 | $247,338 |
| 60s | $555,621 | $209,382 |
3 more rowsAt age 60–69, consider a moderate portfolio (60% stock, 35% bonds, 5% cash/cash investments); 70–79, moderately conservative (40% stock, 50% bonds, 10% cash/cash investments); 80 and above, conservative (20% stock, 50% bonds, 30% cash/cash investments).
