Here's the Average 401(k) Balance of 87-Year-Old Americans (How Do You Compare?)

Once you reach age 87, you're near the end of your retirement curve for your 401(k) and other accounts. That means you will have drawn down significant amounts of your retirement accounts in addition to decades of Social Security income. Still, it's natural to wonder how your retirement plan is working out compared to your peers at the same age.

Here is the average 401(k) balance of an 87-year-old American, and why the median is the better number to look at.

The average retirement balance at 87

The Federal Reserve's 2025 Survey of Consumer Finances puts the median retirement account balance for households 75 and older at $257,000, compared with an average of approximately $798,700. Those are the closest available figures for 87-year-old Americans, and there's an important distinction. The Federal Reserve groups everyone 75 and older together and counts 401(k)s, 403(b)s, TSPs, and IRAs, not just 401(k)s.

The reason for this massive discrepancy between the median and average is that a relatively small number of wealthy households pull up the average, making the median a more useful comparison for most retirees.

Something else to keep in mind is that only 44.6% of households in this age bracket still have retirement accounts. The published median and average exclude the majority who don't. Many retirees have already spent their savings. Others rely on pensions, Social Security, or assets outside retirement accounts.

Actual 401(k) balances are lower for people in their 80s

Data from the retirement services company Empower provides a narrower view of workplace retirement savings.

Empower's figures show that people in their 80s had a median 401(k) balance of $77,165, and a mean of $424,165, as of September 2026. These figures come from people who use Empower's financial dashboard, so it's not a representative sample of all Americans.

The decline makes sense. Retirees spend their savings, and required minimum distributions (RMDs) force withdrawals from most traditional retirement accounts each year after 73. At 87, the important question isn't whether your balance matches someone else's, but whether your remaining savings will cover expenses that your regular income won't.

Social Security provides a foundation for retirement income

The Social Security Administration's 2026 statistical supplement reports that retired workers age 87 received an average of $2,015.54 per month in December 2025. That's approximately $24,186 annually before Medicare premiums and any applicable taxes.

Someone receiving that amount with relatively low expenses may need surprisingly little from retirement savings. Social Security also generally receives annual cost-of-living adjustments, providing some protection against inflation.

For married couples, both benefits may support household expenses. However, when one spouse dies, the surviving spouse generally doesn't continue collecting both full payments. Eligible survivors may instead receive the higher applicable benefit.

A paid-off home could make a bigger difference than your 401(k)

Consider two retirees receiving $2,000 monthly from Social Security.

One owns a home outright, while the other pays $1,500 monthly in rent. Even with identical retirement savings, their financial situations look completely different. A mortgage-free home eliminates the monthly principal and interest payment, although property taxes, insurance, maintenance, and utilities remain.

Pensions and annuities also matter. A retiree receiving $1,200 per month from a pension has an additional $14,400 in annual income without needing to sell investments. Before worrying about a retirement account balance, calculate how much guaranteed or recurring income covers the household's essential expenses.

Long-term care expenses could change everything

A comfortable retirement budget could deteriorate quickly if someone begins needing daily assistance. In-home caregivers, assisted living, and nursing home care may create expenses that dwarf ordinary living costs.

Medicare generally doesn't pay for long-term custodial care, including ongoing help with bathing, dressing, and other daily activities. Medicaid may help eligible retirees cover some long-term care expenses, depending on state rules and financial circumstances.

Adult children should review accounts and beneficiaries

If you're helping an 87-year-old parent manage money, start by compiling a list of bank accounts, retirement plans, pensions, insurance policies, and recurring bills.

Then, there are three issues that need to be addressed.

1. Check beneficiary designations. The IRS recommends reviewing retirement plan beneficiaries after major family changes, particularly the death of a spouse.
2. Look for accounts left with former employers. The Department of Labor's Retirement Savings Lost and Found Database helps people locate forgotten workplace retirement benefits. Consolidating accounts may simplify management, but review taxes, fees, and plan benefits before moving money.
3. Establish appropriate legal account access while your parent is able to authorize it. A financial power of attorney may allow a trusted person to handle financial matters without improperly sharing login credentials.

The Consumer Financial Protection Bureau offers guidance for families handling another person's finances. Additionally, verify that required minimum distributions are being taken. Missing them could trigger IRS penalties.

Unclaimed benefits that could reduce monthly expenses

Even retirees who have been receiving Social Security for decades may qualify for assistance they haven't explored.

The Medicare Savings Programs help eligible people pay Medicare premiums and certain other medical costs. Social Security's Extra Help program reduces prescription drug expenses for people with limited income.

Other possibilities include SNAP food benefits, state property-tax relief, and VA Aid and Attendance for qualifying veterans and survivors who need assistance with daily activities.

Widowed or divorced retirees should also check whether they qualify for a higher Social Security survivor benefit.

Bottom line

An 87-year-old with $50,000 in retirement savings might be financially comfortable with living on just Social Security, a pension, and a paid-off house. Someone with $300,000 could face financial pressure from expensive ongoing care.

One often-overlooked factor is how much of that retirement balance is actually available to spend. The IRS explains that withdrawals from traditional 401(k)s are generally taxable, while qualified Roth withdrawals are tax-free. Two retirees with identical balances could therefore have different amounts available after taxes. Check the account type and potential tax bill before deciding how much savings will cover future expenses.

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