The Average 60-Year-Old Has This Much Money Invested (How Do You Compare?)

Turning 60 is a major milestone, and for many, it brings the issue of retirement
to the forefront. But when it comes to retirement savings, are you behind or
ahead of others, and how should this impact your retirement
readiness?

Below, we’ll discuss how much 60-year-olds have saved for retirement on average,
as well as what you can do to boost your savings.

The shocking average retirement savings for 60-year-olds

Estimates for how much 60-year-olds have saved for retirement vary, depending on
the source. Here’s what the statistics show:

• According to the U.S. Federal Reserve’s latest Survey of Consumer Finances,
  people between 55 and 64 had a median of $185,000 in their retirement accounts,
  and a mean of $537,560.
• Users of the retirement plan provider Empower who were in their 60s had a
  median retirement balance of $590,777 and a mean balance of $1,180,022.
• A similar survey of Fidelity customers between 60 and 64 found an average
  401(k) balance of $249,300.

Why are the numbers so different between the median and mean retirement savings
for 60-year-olds? It’s mainly due to high earners who have saved millions for
their retirement, skewing the mean values upwards.

How much should you save for retirement by 60?

There’s no single answer here, since your financial situation in retirement
depends not only on your savings but also on your projected expenses and other
means of support. As a general rule, however, financial experts recommend that
60-year-olds should have retirement savings of eight to 10 times their annual
salary.

Why so many 60-year-olds are behind on retirement
savings

Whether it’s due to life circumstances or economic factors, too many
60-year-olds fall short of this eight-to-10 multiplication rule of thumb for
their retirement savings. The reasons include:

• A late start to saving for retirement, giving compound interest less time to
  work.
• Economic downturns (such as market crashes in 2000 and 2008).
• Inflation, cost of living, wage stagnation, debt, and other factors that
  make it harder to save for retirement.
• Poor investment choices that were too aggressive or conservative for their
  expected retirement date.

The 60–63 advantage when saving for retirement

The good news is that people in their early 60s also have an advantage when
saving for retirement: even higher catch-up contributions. As of 2025, those
ages 60 to 63 can contribute $11,250 beyond the $23,500 limit to their
employer-sponsored retirement plan, for a total of $34,750. (By contrast, those
ages 50 to 59 can only make a catch-up contribution of $7,500 beyond the limit.)

How your income at 60 affects your savings potential

Your income at 60 significantly impacts your retirement savings potential, and
therefore the kind of retirement you can afford. Below are a few rough estimates
based on a range of salaries:

• $40,000 per year: Using the eight multiplication rule of
  thumb, you should have at least $320,000 saved for retirement by now. In this
  salary range, the maximum amount you can save annually is likely around $10,000
  (if you live frugally).
• $80,000 per year: At this income level, your retirement
  savings should be at least $640,000. A higher income allows you to contribute
  more to your retirement accounts, potentially $15,000 to $30,000, depending on
  your employer match.
• $125,000 per year: With a six-figure salary, the eight
  multiplication rule of thumb would give you around $1 million saved for
  retirement. Your salary allows you to max out your 401(k) and/or IRA
  contributions, which can turn into several hundred thousand dollars by
  retirement.

Where do 60-year-olds keep their retirement savings?

Most 60-year-olds keep their retirement savings in a mix of investments,
including tax-advantaged retirement accounts like 401(k)s and IRAs, personal
savings accounts, and even real estate or cash. As you approach retirement age,
your portfolio should shift from a more aggressive growth stance to a more
conservative stance that will protect your investments (e.g., reallocating from
stocks to bonds or cash).

What to do if you’re behind on saving for retirement

If you’re behind on saving for retirement at 60, don’t panic. Here’s a clear
list of steps to take:

• Perform a full assessment of your current retirement savings and compare
  them against your projected expenses in retirement.
• Take full advantage of catch-up contributions, as described above.
• Consider delaying retirement, if possible, to allow your investments more
  time to compound.
• Remain open to part-time or side income sources that can increase your
  retirement savings or support you in retirement.

What to do if you’re ahead on saving for retirement

If you’re ahead on saving for retirement at 60, you have more options and peace
of mind, but don’t get complacent:

• Double-check and stress-test your savings to ensure you have enough to
  support your retirement vision.
• Consider delaying Social Security benefits until age 70; you’ll get more
  benefits the longer you wait to claim.
• Decide how and when to gradually decrease your portfolio’s exposure to
  high-risk investments like stocks.

Bottom line

At age 60, your savings are a strong indicator of your financial flexibility in
retirement. But whether you’re ahead or behind, there’s still time to make
smart, strategic moves that will serve you well as you transition away from
full-time work.

It’s important to evaluate your expectations and goals and assess all your
options at this stage in order to have a stress-free
retirement.

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