Retirement Retirement Planning

The Average 401(k) Balance at 60 Could Be a Wake-up Call for Many Americans

These numbers may surprise you.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated Oct. 15, 2026

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For many people, reaching their 60s suddenly makes retirement feel much closer. It's right around the corner, and many Americans wonder whether they're on track for retirement.

Recent data from Fidelity shows average 401(k) balances have grown compared to previous years. But many workers still fall short of the recommended balances by age. Here's what experts suggest you should have in your 401(k) at this point in your life.

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The average 401(k) balance for all American workers

According to Fidelity, the average 401(k) balance for all Americans is $155,800, and the average IRA balance is $144,523. That covers workers of all ages as of Q2 2026, from Gen Z through Baby Boomers, and represents an 13% increase from Q2 2025.

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The latest 401(k) balance data for workers in their 60s

When you zoom in on workers in their 60s, the numbers tell a different story. According to Empower, the average 401(k) balance for employees in their 60s is $581,696, and the median balance is $189,745. Given that many people retire from their jobs in their 60s, those numbers are a bit concerning. Many financial experts recommend saving significantly more in order to eliminate some money stress in retirement.

How much experts recommend you save

Fidelity recommends having eight times your current salary saved by age 60. That gives you a clear target based on your income:

Earning $65,000 a year: aim for $520,000 saved
Earning $100,000 a year: aim for $800,000 saved

That means many Baby Boomers, unfortunately, haven't saved enough to retire comfortably and maintain the lifestyle they had while working.

Why 401(k) averages may be misleading

If you want to know how you compare to others in your age bracket, the median 401(k) balance is usually a better indicator than the average. The average is skewed by extremely high balances at the top of the range.

Data from Empower shows the average 401(k) balance for someone in their 60s is $581,696, while the median is $189,745. That gap means most workers have less than the headline average suggests.

What to do if you have a retirement savings gap

If you have a gap between what experts say you need and what's actually in your account, there are a few ways to close it. The most common path is to factor in Social Security. While Social Security was never meant to fully fund retirement, it can be a critical additional income stream.

Another option is part-time work or building a small business income stream. In fact, research shows one in eight retirees plan to return to work. Some return full-time, while others pick up part-time roles.

Take advantage of Super Catch-Up contributions from 60 to 63

Workers age 60 to 63 can use a Super Catch-Up contribution. This lets you contribute an extra $11,250 annually on top of the $24,500 401(k) maximum. If you can fully fund this benefit, your total contribution can reach $35,750.

One caveat: those earning over $150,000 a year must make catch-up contributions as Roth contributions starting in 2026. That means high earners can no longer lower their taxable income with 401(k) catch-up contributions as they could in previous years.

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Where to get advice about your retirement strategy

If you feel behind, one option is to get advice from a financial planner. A planner can review your 401(k) progress and recommend how to maximize your final years of working. They can also help with your withdrawal strategy so you don't get hit with a bigger tax bill than expected.

Many planners also help with bigger-picture decisions like Social Security claiming age, Roth conversions, and how to sequence withdrawals across accounts to minimize taxes over the long term. Even one or two planning sessions can be a high-leverage use of your time as retirement approaches.

Bottom line

The data shows that many people in their 60s are behind on retirement savings. The good news is age 60 to 63 is also the window when workers can take advantage of Super Catch-Up contributions. Combining catch-up contributions with other income streams like Social Security can help many workers achieve the stress-free retirement they've been planning for, even if their current balance feels short.

The single most important step is to look at your numbers honestly, set a target tied to your real-life expenses, and check up on your fiinancial health to adjust your savings rate from there. Small, consistent moves today still compound into meaningful results.

Editor's Note: Portions of this story were drafted with assistance from generative AI tools. All final creative decisions, edits, and fact checking were done by human writers and editors.

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