Retirement Retirement Planning

Here's the Average Retirement Savings of 56-Year-Old Americans (Are You on Track?)

National savings averages show where most 56-year-olds stand.

By Kristin Hitchcock

Edited by Laura Hohenstein

Updated Feb. 25, 2026

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At 56, retirement stops feeling like a distant concept and starts to feel close. Maybe coworkers are retiring, or you've started thinking about how long you actually want to keep working. And sooner or later, the question pops up: Am I actually on track?

Comparing your savings to others your age is about context. Seeing how you stack up can help you spot gaps or, just as often, reassure you that you're doing better than you thought.

Here's a look at how retirement savings typically shape up around this age so you can check up on your financial health while there's still time to make adjustments.

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What retirement savings look like at age 56

Savings levels vary wildly, but national data gives us a helpful snapshot. Federal Reserve data for households ages 55–64 (the closest group to 56-year-olds) shows:

Average retirement savings: about $537,000
Median retirement savings: around $185,000

That gap is important. A smaller group with very large balances pushes the average higher, while many households fall closer to the median number.

So if your number feels lower than the headline average, that's actually very common.

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Why average and median numbers tell different stories

The average number gets attention, but it doesn't reflect what most people have saved. It's lifted by higher earners and longtime investors with large portfolios.

The median gives a more realistic picture: half of households have more saved, and half have less.

By 56, many people have also dealt with career pauses, layoffs, raising kids, or caring for family members, all things that can slow retirement savings, even for responsible planners.

Typical 401(k) balances in your late 50s

For many workers, their 401(k) is their main retirement account. Vanguard reports that people ages 55–59 hold:

Average 401(k) balance: roughly $270,000
Median balance: closer to $95,000

The difference again shows how uneven retirement savings can be. Plenty of people didn't start saving until later or had to scale back contributions during tougher financial periods.

If your balance feels smaller than you expected, you're in good company.

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How much savings might you actually need?

One common planning rule suggests retirees withdraw around 4% of savings per year, adjusting over time. Using that approach:

$500,000 in savings might support about $20,000 annually
$750,000 could generate roughly $30,000 annually
$1 million might provide around $40,000 annually

Most retirees combine savings withdrawals with Social Security, and sometimes part-time work or pensions. Personal savings rarely carry the entire financial load alone.

Catch-up contributions matter more now

The good news at 56? You still have one of the strongest saving windows left.

Workers age 50 and older can make catch-up contributions to retirement accounts, allowing them to invest more than younger workers each year. For people in their peak earning years, this extra contribution room can noticeably boost balances before retirement arrives.

Many savers find their biggest account growth happens in their final decade of work.

Why so many people feel behind at this age

Even people with solid savings often feel uneasy in their late 50s. That's partly because financial pressure tends to pile up at this stage.

Common challenges include:

Supporting adult children or college expenses
Concerns about rising healthcare costs
Helping aging parents financially
Recovering from job or income setbacks
Getting a later start on retirement savings

It's often called the "sandwich generation" squeeze, and it hits many households right when retirement savings should peak.

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Ways to strengthen savings before retirement

While retirement is getting closer, there's still time to improve your position. Many people focus on:

Increasing contributions while income is strongest
Paying down major debts before retirement
Planning for lower housing expenses later on
Delaying Social Security to boost benefits
Considering part-time income early in retirement

Small changes made now can add up over the next several working years.

Investment strategy often shifts in your late 50s

Around this age, many investors start thinking about reducing risk. But making drastic shifts all at once can backfire.

Moving entirely into conservative investments too early might slow growth, while taking on too much risk leaves savings vulnerable to market swings. Many advisors recommend gradually adjusting investments based on your timeline, spending needs, and personal comfort level.

A quick retirement readiness gut check

If you're unsure whether you're on track, ask yourself:

Am I saving consistently now?
Do I have a rough estimate of retirement expenses?
Have I checked future Social Security benefits?
Is debt manageable heading into retirement?
Do I have a general retirement timeline?

If some answers feel fuzzy, you still have time to refine your plan while income remains strong.

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Bottom line

By 56, retirement is close enough that your savings deserve a clear-eyed review, and national averages show many Americans are still building toward their goals rather than already feeling fully prepared. Taking time now to check up on your retirement readiness can help you make smarter moves while your earning years are still working in your favor.

Social Security statements now include personalized benefit estimates online, making it easier to adjust your retirement plan sooner rather than later, instead of waiting until retirement is just a year or two away.

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