Retirement Retirement Planning

Here's The Average Retirement Savings of 61-Year-Old Americans (How Do You Compare?)

See how your nest egg stacks up before retirement.

By Andy Lindquist

Edited by Lisa Dammeyer

Updated March 4, 2026

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Once you're 61, retirement is almost staring you in the face. With only a few years before you hit the age to start taking your Social Security, it's time for you to check up on your retirement readiness. There's still time to make some big changes to your financial health and boost your savings as you head into your final years of work.

Here's the average retirement savings of 61-year-old Americans, so you can see how you stack up.

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Average retirement savings at age 61

According to the latest data from the Federal Reserve, the average household balance for retirement savings for the 55 to 64 age bracket is $537,560. That amount includes all retirement accounts, such as 401(k)s, Roth IRAs, IRAs, and pensions.

While that might seem like an awfully large amount of money, the average isn't always the best number to look at, especially when looking at retirement accounts.

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Why the average doesn't tell the whole story

The mean, or average, is skewed by high earners. Since there are so many wealthy people with millions of dollars in their accounts, the average retirement savings in America gives you a false representation of where a typical 55- to 64-year-old is at.

It's much better to look at the median figure when you're trying to compare yourself to your peers. The median retirement account balance for that age group is $185,000, which is significantly lower and much easier to wrap your head around.

How much should you aim to have saved at 61

Generally speaking, there are a few rules you should follow to determine if you're meeting your retirement savings goals by 61. According to Fidelity, you should have saved eight times your annual salary by 60. That means if you make the median annual U.S. salary of $61,984, you'd have $495,872 worth of savings.

Vanguard recommends saving between 12% and 15% of your income annually, including all employer matches, to have enough money to retire on.

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What to do if you need to catch up

If you're not anywhere near the savings of the median or mean, don't worry, as there's still time to grow your nest egg. There are still plenty of things you can do in your 60s to catch up and hit that retirement number. It just means you'll have to be a lot more diligent and disciplined with your spending and saving practices.

1. Delay retirement

If it's feasible for you to continue working and you can delay your retirement and your Social Security benefits, it can give you a huge financial boost. The Social Security retirement age is now 67 to receive full benefits, but the Social Security administration allows you to delay taking it until you reach 70.

For every year you wait, up to age 70, your total annual benefit amount increases by 8%. Someone who delays from 67 to 70 can receive up to 24% more per month, for life. That's a substantial increase, and coupled with three more years of work income and savings, it can be a powerful late boost to your accounts.

2. Max out catch-up contributions

The IRS has very favorable "catch-up" contributions for older individuals, and it's worth taking advantage of.

Workers age 50 and older can contribute up to $31,000 to a 401(k); that's the standard $23,500 limit plus a $7,500 catch-up contribution. Thanks to the SECURE 2.0 Act, individuals ages 60–63 qualify for an enhanced catch-up contribution of $11,250 (rather than the standard $7,500).

That brings the total 401(k) limit to $34,750 for eligible participants between the ages of 60 and 63. If you max out these retirement contributions at 61, 62, and 63, that's an additional $104,250 you can put in your account. That's a substantial amount of money, and if you're able to keep working until the age of 70, you'll give it even more time in the market to grow, boosting the total account value.

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3. Reduce expenses

At 61, you may have more financial flexibility than at earlier life stages. If your children are grown, your mortgage is paid down, or your income has peaked, this is a prime window to redirect any freed-up cash into your retirement and regular savings accounts.

Downsizing your home, cutting discretionary spending, or eliminating high-interest debt are all great strategies. And you'll want to resist the urge to splurge on a luxury car, five-star resort vacation, or any other big-ticket purchase that could eat into your savings.

4. Evaluate your health care needs

One important factor many people overlook is the cost of health care in retirement. According to Fidelity, the average 65-year-old couple retiring today may need about $315,000 just to cover medical expenses during retirement, and that doesn't include long-term care or other out-of-pocket costs.

This is why it's so crucial to boost your accounts as much as you can and plan out for these expenses years in advance. If you are in poor health or have a family history of extra health care needs or longevity, you may want to estimate more. Doing so will save you a lot of hassle and potential debt down the road.

Bottom line   

By 61, retirement is creeping closer and closer, but you still have meaningful control over the outcome. Making moves like delaying Social Security, maximizing catch-up contributions, and trimming expenses in your 60s can materially boost your financial readiness in just a few years and greatly improve your retirement plan.

Get started with these tips today, and consider consulting with a financial advisor if you need more personalized help. They may be able to devise a plan that better works for your individual retirement needs.

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