Retirement Retirement Planning

Here's the Average 401(k) Balance of the Average Retiree (How Do You Compare?)

The average retiree's 401(k) balance may be a reminder that saving and investing can dramatically shape your financial future.

By Adam Palasciano

Edited by Sara Albertelli

Updated Nov. 29, 2025

If you've ever wondered whether your 401(k) is on track, you're probably not alone. Many Americans nearing retirement may be curious about how their savings compare to others their age, and what that means for their long-term security.

Understanding the averages can help you gauge whether your retirement plan is on target or needs some fine-tuning. The data might surprise you, but there are steps you can take to boost your savings and strengthen your financial future.

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What is the age of the average retiree?

The average retirement age for men is 65, while the average for women is 63, as reported by Empower. These figures align closely with the earliest age Americans are eligible to begin claiming Social Security, currently age 62, and transition to a fixed income.

Although some people may consider delaying retirement due to longer life expectancies and rising costs, these ages still represent the point at which many leave full-time work. The earlier you start saving, the more time your money has to grow, a lesson the data reinforces across all age groups.

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The average 401(k) balance for someone in their 60s

According to Empower, the average 401(k) balance for people in their 60s is $573,500, with a median balance of $187,957. While that's above the overall average across all age groups ($326,459), it may still fall short of what's needed to comfortably sustain retirement for 20-plus years, depending on several factors.

Higher living expenses, health care inflation, and longevity make it crucial to plan beyond basic averages.

The average 401(k) balance of retirees

As per Empower, here's how average and median 401(k) balances vary across different retiree age groups:

60s: $573,500 average / $187,957 median
70s: $423,649 average / $93,364 median
80s: $417,148 average / $80,264 median

These figures demonstrate how balances tend to decline over time as retirees begin drawing down their savings. They also highlight the importance of steady investing during working years and strategic withdrawals during retirement to preserve capital. Compounding remains the single most powerful force in building wealth. The earlier and more consistently you contribute, the stronger your financial cushion can be later.

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How to increase retirement savings

You can increase your retirement savings, or make your existing funds stretch further, by applying a few key strategies. These practical steps can help you maximize your nest egg and extend its lifespan well into your golden years.

Get a side hustle

Supplementing your income through part-time or freelance work can boost your cash flow while allowing your 401(k) to keep growing. Earnings from a side gig can also fund catch-up contributions or help you delay withdrawals from retirement accounts. Even short-term projects can potentially make a difference over time.

Live below your means

Avoiding lifestyle inflation is one of the simplest and most effective ways to grow savings. By keeping expenses steady as income rises, you free up more money to invest. This habit builds financial discipline and creates long-term security, especially as retirement approaches.

Eliminate and stay out of debt

Entering retirement debt-free provides peace of mind and flexibility. Paying off your mortgage, car loans, and credit cards before leaving the workforce reduces monthly obligations and helps stretch your savings further. Freedom from debt is a cornerstone of financial independence.

Reevaluate your investment mix

As you near or enter retirement, reviewing your asset allocation is essential. A balanced mix of stocks, bonds, and cash helps manage risk while supporting steady growth. Rebalancing periodically ensures your portfolio stays aligned with your time horizon and risk tolerance.

Automate your savings

Setting up automatic contributions to your 401(k) or IRA removes the temptation to skip saving and ensures you're consistently building wealth. Even small, scheduled increases, like boosting your contribution by 1% each year, can add up significantly over time. Automation also helps you stay disciplined through market ups and downs, keeping your strategy on track for the long haul.

Delay Social Security if possible

Waiting to claim Social Security benefits can significantly increase your monthly payment. Each year you delay past full retirement age (up to age 70) raises your benefit by about 8%. If you can rely on savings or part-time work in the meantime, delaying may enhance your lifetime income and reduce reliance on 401(k) withdrawals.

Bottom line

The data shows that the average retiree's 401(k) balance may not provide the full financial cushion many envision, but averages don't define your future. The key is to stay consistent with contributions, minimize debt, and make strategic financial moves that compound over time.

With proactive planning, smart spending, and disciplined investing, you can set yourself up for retirement in a way that's both secure and rewarding.

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