Retirement Retirement Planning

Here's the Average Retirement Savings of 62-Year-Old Americans (How Do You Compare?)

New data reveals what the typical 62-year-old has saved — and the steps you can take to strengthen your own retirement future.

By Adam Palasciano

Edited by Andrea Basse

Updated Dec. 21, 2025

Turning 62 is a major milestone because it's the first year you can claim Social Security and may be the moment retirement feels truly within reach. It's also when many people take a closer look at whether their savings can support the lifestyle they want. Understanding how you stack up against national averages is a helpful step when building a retirement plan that fits your goals. The latest numbers paint a revealing picture — and offer valuable lessons for anyone approaching retirement.

Here's what the average 62-year-old has saved, plus practical steps to boost your own retirement readiness.

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Average retirement savings of a 62-year-old American

Recent data from Empower shows that Americans in their 60s have an average retirement account balance of $1,148,441, while the median balance — a better indicator of typical savers — is $539,068.

These numbers reflect combined totals across all types of retirement accounts, such as 401(k)s, IRAs, and others. Although seven-figure averages may seem encouraging, the wide gap between average and median savings highlights how uneven retirement readiness can be.

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How to increase your own retirement savings

Even if your savings fall below national averages, you still have meaningful opportunities to grow your nest egg. Increasing contributions, reducing expenses, and staying consistent with long-term planning can help significantly. With a focused strategy, it's still possible to build a stronger retirement foundation.

Set specific savings goals

Clear goals make it easier to stay motivated and track your progress. Estimate how much income you'll need in retirement, then determine how much to save each month to hit that target.

Simple benchmarks, such as contributing a percentage of your income or raising contributions annually, can help keep you on track.

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Eliminate unnecessary expenses

Cutting recurring costs frees up money that can be redirected into savings. Review subscriptions, entertainment spending, and lifestyle upgrades that may no longer serve your long-term goals.

Even modest reductions may translate into thousands of extra dollars invested over time.

Max out your 401(k) contributions and take advantage of catch-up contributions

For tax year 2025, you can contribute up to $23,500 to a 401(k), plus an additional $7,500 if you are age 50 or older. Those ages 60, 61, 62, and 63 qualify for an enhanced catch-up contribution of $11,250, allowing them to accelerate savings in the final working years.

Increasing contributions slowly over time can help dramatically improve your retirement readiness.

Make sure you get the full employer matching contribution

Employer matches are essentially free money, and failing to claim the full amount means you're leaving part of your compensation on the table.

Review your company's match structure and ensure your contributions qualify for the maximum benefit. Matching dollars compound alongside your own contributions, strengthening long-term growth.

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Start a side gig

Supplemental income can help boost savings quickly, especially if you're catching up later in life. Freelancing, consulting, or monetizing a hobby can provide additional cash flow without the commitment of full-time work.

Directing those extra earnings into retirement accounts may make them even more valuable.

Open and fund an IRA

An IRA offers another tax-advantaged way to build savings alongside a workplace plan. You can choose between a traditional IRA, which offers tax-deductible contributions for many people, or a Roth IRA, which provides tax-free withdrawals in retirement.

Consistently funding an IRA can help diversify your retirement income sources.

Save all cash windfalls for retirement

Bonuses, tax refunds, inheritances, and other windfalls present easy opportunities to pad your retirement savings. Since these funds aren't part of your regular budget, saving them doesn't require lifestyle cuts.

Redirecting windfalls into long-term accounts can help accelerate your progress with minimal sacrifice.

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Make appropriate investments for your age

At age 62, your portfolio should balance growth potential with protection from major losses. Near-retirees may consider shifting toward more conservative investments, such as bonds or dividend-paying stocks, but still maintain some exposure to growth to keep pace with inflation.

The right investment mix can help preserve your principal while supporting long-term income needs.

Bottom line

The average 62-year-old has saved more than half a million dollars for retirement, but everyone's financial journey looks different. What matters most is having a clear strategy and making meaningful progress toward the future you want.

Whether you're ahead, behind, or somewhere in the middle, small steps taken today can dramatically shape your retirement plan and help you move closer to a stress-free retirement.

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