The Average 65-Year-Old Has This Much in Their 401(k): How Do You Compare?

The closer you get to retirement, the less time you have to shore up your retirement plan by contributing to a 401(k) plan. Fortunately, you still have the opportunity to boost your retirement savings account before leaving the workforce.

Find out how much the average 65-year-old has in their 401(k), and learn strategies to maximize savings as your retirement date draws closer.

Americans in their 60s have an average of $573,624 in their 401(k) accounts, according to financial services company Empower.

Before you get discouraged by the size of that number, remember that calculating an average simply means adding up every number in a series, then dividing that total by the number of items in the series.

That means averages aren't adjusted to account for outliers, so those with especially high and low account balances end up skewing the number a bit.

In contrast, $210,724 is the median amount someone in their 60s has in their 401(k). The median — which is the middle number in a series — offers a better representation of how much a typical 60-something-year-old has saved so far.

Of course, no matter how much you have stashed in your 401(k), you can always save more before retiring. Here are 10 strategies for building a bigger retirement nest egg.

In 2025, those who are younger than 50 can contribute $23,500 to their 401(k). However, those who are 50 or older can contribute an extra $7,500 of "catch-up contributions" to bring the total to $31,000.

And starting this year, savers who are between the ages of 60 and 63 can make an even bigger catch-up contribution: $11,250.

These catch-up contributions are meant to help older workers get their retirement accounts up to speed in the last few years before leaving the workforce. If you haven't been maxing out contributions, this is a good year to start doing so.

The older you get, the less time you have to recoup money lost in failed investments. For that reason, many people in their 60s prefer to shift their investment portfolio away from risky investments (such as stocks) and toward more stable investments (such as bonds).

However, this might not be the right approach for everyone. A financial planner can help you understand which investments make the most sense for your age group and estimated time to retirement.

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If you're already maxing out 401(k) contributions — or if you do not have access to this type of plan — you can save more money by opening an individual retirement account (IRA).

Contributions to an IRA are capped at $7,000 a year if you're younger than 50. However, if you are 50 or older, you can contribute an extra $1,000.

Having enough money in your 401(k) is key to a successful retirement, but it isn't the only savings account you should be investing in right now.

A health savings account (HSA) allows you to build a tax-advantaged savings fund specifically earmarked for medical expenses. Once you enroll in Medicare, you can no longer add contributions to your HSA. However, you can continue to withdraw funds from your HSA throughout retirement.

If you're struggling to find room in your budget to contribute more to savings, think about picking up another job so you can earn extra income that can go directly into your retirement account.

Driving for Uber Eats after work or working part-time at the grocery store might be all you need to meet your savings goals.

If you're lucky enough to inherit a good sum of money or to qualify for a holiday bonus at work, use the found cash to make a lump-sum contribution to your retirement savings.

After all, you weren't expecting the money — you might as well save it for a rainy retirement day.

Many employers offer to match their employees' 401(k) contributions up to a specified amount. Don't let that free money go to waste.

If you've recently switched companies or haven't gotten familiar with employee benefits at your current job, take a look at the employee handbook to learn how to qualify for the full match.

Withdrawing money from your 401(k) before you are age 59.5 typically results in having to pay taxes and penalties.

So, instead of cashing out your 401(k) if you move to another company, roll money from the old employer-sponsored account into your new one — or into an IRA — to make sure your savings continue to grow.

In many cases, you can also simply leave the funds in your existing 401(k) account with your old employer.

Are any less-than-necessary costs eating into your budget? If you're overspending, find ways to cut back. Then, funnel that extra savings into your 401(k).

Even simple steps such as preparing meals at home instead of eating out can add up to a good amount of savings year over year.

While comparing your 401(k) savings to those of your peers is a useful benchmark, you might need more or less money in retirement than they do, depending on your lifestyle and the cost of living in your area.

Take your personal circumstances into account when deciding how much to save. Trying to save too much can burn you out now, but saving too little will bite you in the future.

Getting your 401(k) where you want it to be is a crucial part of planning for retirement, but it's far from the only step.

Along with keeping an eye on your investments, increase your odds of a stress-free retirement by paying down debt, meeting with a retirement planner, and cutting down on spending.

Every penny you save is one that will yield dividends once you're out of the workforce for good, so keep up the hard work — the payoff might be coming sooner than you think.