Retirement Retirement Planning

The Average 70-Year-Old Has This Much in Their 401(k) - How Do You Compare?

Find out how your retirement savings measure up, and what you can do to boost your balance.

By Adam Palasciano

Edited by Chris Kissell

Updated Jan. 24, 2025

As you approach your 70s, how big is your nest egg? Many Americans of this age wonder if their savings are enough to support the lifestyle they envision.

Knowing how much others have saved in their 401(k) can provide valuable perspective as you refine your retirement plan. Find out how you measure up to peers, and what you can do to improve your financial strategy.

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How much does the average 70-year-old have in a 401(k)?

The average 401(k) balance for individuals in their 70s is $428,434, according to financial services company Empower. However, the average can be skewed by extremely high balances from top earners

The median balance — a more representative figure — is $104,072. The median represents the midpoint, meaning half of the people have saved more than the median and half have saved less.

If your balance has fallen short, don't panic: There are steps you can take to improve your financial health and lower your financial stress, including the following.

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1. Delay retirement

If possible, consider delaying retirement. This strategy allows you to continue contributing to your 401(k) and other retirement accounts, giving your savings more time to grow.

Working longer also might help you delay filing for Social Security benefits. Waiting can result in a higher monthly payout, which can make a significant difference in your financial security during retirement.

2. Go back to work if you've already retired

For those who have already retired, returning to work — even part time — can be a game-changer.

Picking up a side hustle or re-entering the workforce enables you to boost your income and contribute more to retirement accounts.

Plus, staying active in the workforce can provide mental and social benefits by keeping you engaged and connected.

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3. Take advantage of catch-up contributions if you go back to work

Once you turn 50, the IRS allows you to make catch-up contributions to your 401(k) and IRA accounts. These additional contributions can significantly boost your savings if you're behind.

For 2025, the catch-up limit for 401(k) plans is $7,500. The catch-up limit for IRAs is $1,000.

4. Meet with a financial advisor

A financial advisor can help you evaluate your current savings strategy, set realistic goals, and create a plan to maximize resources.

Whether you're playing catch-up or strategizing for long-term growth, professional guidance can make a world of difference.

5. Consider Roth IRA conversions

Converting a traditional IRA to a Roth IRA might offer tax advantages. That is especially true if you suspect that tax rates will be higher in the future.

While you'll pay taxes on the converted amount now, your future withdrawals will be tax-free, which can offer more flexibility in retirement.

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6. Invest outside a 401(k)

A 401(k) isn't the only place to grow your wealth. If you've already reached contribution limits in any given tax year, consider investing in stocks through taxable investment accounts, buying rental real estate, or tapping into other income-generating assets.

Broadening your investment strategy can provide additional streams of income and reduce your reliance on retirement accounts.

7. Rein in your spending

Eliminating unnecessary expenses is one of the most effective ways to stretch retirement savings.

Review your budget and identify areas where you can save, such as cutting down on impulse purchases, dropping unused streaming services, or downsizing your home.

Every dollar saved can be redirected toward bolstering your financial future.

8. Automate your savings

If you're still working, set up automatic contributions to retirement and savings accounts.

Automating these tasks ensures you're consistently saving, reducing the temptation to spend that money elsewhere.

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9. Build an emergency fund

Even in retirement, unexpected expenses can arise. Maintaining an emergency fund can prevent you from dipping into your 401(k) or other retirement savings prematurely.

Calculate your monthly expenses and then try to save three to six times that amount in a readily accessible account.

10. Explore part-time work or a side hustle

Part-time work or a side hustle can help you pad retirement accounts while you stay mentally active. These flexible work options can help you earn extra income without a full-time commitment.

For example, you could leverage your professional expertise by offering consulting or freelancing services.

Bottom line

Matching the average 401(k) balance for a 70-year-old may seem daunting, but there are numerous ways to catch up and strengthen your financial position.

From delaying retirement to cutting unnecessary expenses, small steps can lead to significant improvements. Take charge now to set yourself up for retirement and enjoy the peace of mind that comes with financial security.

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