The Average 60-Year-Old Has This Much in Their 401(k) - How Do You Compare?

Your 60s are crunch time in terms of saving for retirement. Social Security and other benefits can help you stretch your retirement dollars, but nothing compares to the security of having enough money in a nest egg to cover expenses.

How do you know if you have saved enough cash? Here is how much the average 60-year-old has in their 401(k) and what you can do if you are trying to save but still have a ways to go.

How much does the average 60-year-old have in a 401(k)?

According to data from Empower, Americans in their 60s have an average of 576,755 in their 401(k). Because the average can be skewed by even just a few extremely high earners, the median may give a 60-year-old a better idea. That amount is $187,249.

Of course, the actual amount each person has in a 401(k) varies widely. Some experts say it's smart to have saved around eight times your current salary by the time you are 60, but the exact figure will differ from person to person.

Obviously, the more money you have in your 401(k), the better prepared you will be for retirement. If you are lagging in your savings efforts, you still have time to catch up. Start with our tips below.

Meet with a financial advisor

Start by meeting with a financial advisor to create a solid savings and investing plan. An expert can help you set a savings target that makes sense for your wants and needs.

They can also help you run the numbers on what you need to save today to reach your future retirement goals.

Take advantage of catch-up contributions

You are only allowed to contribute a specific amount of money to your 401(k) account each year. For example, in 2026, most workers will be allowed to contribute a maximum of $24,500, up from $23,500 in 2025.

However, once you turn 50, you can make additional "catch-up contributions." For 2026, the cap on catch-up contributions is $8,000.

Those who are between the ages of 60 and 63 can also contribute an extra $11,250.

Continue working (and continue contributing to retirement accounts)

If you don't have enough savings to retire at the age of 60, it might be smart to defer retirement for several years or more. That will allow you to keep contributing to your retirement amount.

Many folks want to retire early, but if you don't have the money to do so, you are going to need to continue to save for a while longer.

Rein in your spending

The less you spend, the more money you will be able to squirrel away into a savings account.

Consider reviewing your budget and finding areas where you can afford to cut back, whether that's on eating out or taking vacations.

Consider downsizing to a smaller home

If your home costs are eating a huge part of your budget, now could be a good time to consider downsizing.

You should be able to save money on utilities if you live in a smaller space, and moving while you are still relatively young could be easier than trying to arrange a move when you are much older.

Think hard about the cost of living in your area

Do you live in an area with a high cost of living? You might want to relocate to a place where things are cheaper.

There are downsides to moving across the country, especially if it means you would have to find another job or leave family. So, don't jump straight to moving as a solution.

However, if you are up for the adventure, relocating to somewhere cheaper while you are still working could give you a few years to dramatically expand your savings.

Take a part-time job or develop a side hustle to boost income

If cutting down on spending doesn't provide you with enough extra savings, you might need to pick up another job that provides income you can funnel directly into a savings account.

Such jobs are plentiful these days. You could also explore a side gig, from driving for a rideshare to dropping off groceries. Or if you are crafty, consider opening your own Etsy shop or Amazon store.

Take on a renter

Consider freeing up some space in your basement or the spare room and renting it to someone. This can create a significant new income stream during your golden years.

Another option is to advertise your home on Vrbo or Airbnb and rent it out on weekends while you stay with a friend or another place when you are out of town.

Delay signing up for Social Security

You can start taking Social Security benefits as early as age 62. But if you do so, your monthly benefit will be permanently smaller.

By waiting until your full retirement age, 67 for those born in 1960 or later, you increase the size of the monthly benefit. If you wait until age 70, the benefit will be even bigger.

For some people, it makes sense to take Social Security early. But if you don't have much in savings, you are probably better off continuing to work as long as possible before finally retiring and taking Social Security.

If you are unsure of the best time to apply, discuss the matter with a financial advisor.

Find a strategy for paying down high-interest debt

High-interest debts attached to things like credit cards can cause you to waste a lot of money in massive interest payments.

To cut down on the amount you spend on interest, consider ways to restructure your debts or to use other techniques to lower their cost. For instance, you might do a balance transfer to a card that is offering a 0% rate during a promotional period.

The sooner you can crush your debt, the more money you will have to save.

Bottom line

Saving for retirement isn't easy, but if you build real wealth now, it can pay off in a big way down the road.

Keep yourself motivated by planning the retirement of your dreams. Imagining how you will spend that money later can help you stay on track.

You May Also Like

Almost 80% of Americans Fear a Retirement Age Increase — Here’s the Real Reason Why

By FinanceBuzz Editors

10 Smart Money Moves to Retire

By FinanceBuzz Editors

The Easiest Way to Diversify Your Investment Portfolio With Fine Art

By FinanceBuzz Editors

7 Brilliant Ways to Build Wealth After 40

By FinanceBuzz Editors

5 Ways Seniors Are Throwing Away Money

By FinanceBuzz Editors

Best High-Yield Savings Accounts of September 2026

By FinanceBuzz Editors

Save Money and Get Huge Discounts on Everyday Purchases

AARP Benefits

• Huge discounts on travel, groceries, prescriptions and more
• Access to financial planning resources and health tools
• Join AARP and get 25% off with automatic renewal

Become a member now!

---

Subscribe Today

Unlock the Best Banking Deals and Bonuses

From high-yield savings accounts to cashback checking and sign-up bonuses, we bring you the best banking offers to grow your money smarter.

or

SEE TOP BANKING OFFERS →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms