Here's the Average Retirement Savings at 60 (How Do You Compare?)

If your 60th birthday is here, close, or already in the rearview mirror, your retirement savings number can suddenly feel a lot less abstract. This is the age when someday starts turning into a calendar date.

Knowing how your numbers compare with other households your age can provide valuable context to see whether you may need to make changes to better set yourself up for retirement.

Here's how the average retirement savings by age looks at 60, how to read that benchmark, what 60 means for your retirement timeline, and which moves could still make a meaningful difference before you claim Social Security or leave work.

The age-60 benchmark

Empower's 2026 retirement benchmarking data puts the average retirement savings for Americans in their 60s at $1,228,196, while the median sits at $568,116. Those totals cover retirement savings across multiple accounts, so a 60-year-old's 401(k) balance on its own will likely look smaller than either number. That second number matters because very large balances can pull the average higher than what many households actually have.

The average gives you one comparison point, but it doesn't tell the whole story. If a small group has very large balances, the average can look stronger than the typical 60-year-old's savings.

That's why the median is useful. The median means half of savers have more and half have less. If your balance is below the average but closer to the median, you might be in a more common position than the headline number suggests.

Your own target also depends on your income, housing costs, health, debt, expected retirement age, and whether you might have a pension. The benchmark works better as a warning light than a verdict.

Why 60 matters

If you turn 60 in 2026, you were born in 1966. Under current Social Security rules, your full retirement age is 67 because people born in 1960 or later have a full retirement age of 67.

That means 60 isn't the finish line. It can be a seven-year runway to full retirement age, a five-year runway to Medicare eligibility at 65, and a two-year runway to the earliest Social Security claiming age of 62.

Those gaps are real under today's rules. They also give you time to adjust. A few more working years, a later claiming age, or higher retirement contributions could change the math more than you might expect.

Catch-up contributions

Age 60 comes with a powerful savings tool if you have access to a workplace retirement plan. For 2026, the IRS announced that the employee contribution limit for 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan is $24,500.

Workers ages 60 through 63 could also qualify for a higher catch-up limit under SECURE 2.0. For 2026, that higher catch-up limit is $11,250 for eligible 401(k), 403(b), and governmental 457(b) plans, compared with the regular age-50 catch-up amount of $8,000.

This opportunity only helps if your plan allows catch-up contributions and your cash flow can handle them. If you're 60 and still working, ask your plan administrator what your 2026 maximum is based on your age, income, and plan rules.

Social Security choices

You can claim Social Security as early as 62, but claiming before full retirement age generally reduces your monthly benefit. If your full retirement age is 67, claiming at 62 means locking in a permanently reduced check.

Waiting can raise your monthly benefit. Under current Social Security rules, delayed retirement credits could increase benefits if you claim after full retirement age, up until age 70.

Waiting isn't always the right answer. Your health, savings, job situation, spouse's benefit, and need for income all matter. But at 60, you still have time to build a claiming plan instead of making a rushed decision at 62.

The Medicare gap

Medicare generally starts at 65, so retiring at 60 could leave a five-year health insurance gap. That gap exists only if you lose employer coverage and don't have another affordable option, such as a spouse's plan, Affordable Care Act marketplace coverage, COBRA, retiree coverage, or other insurance.

This is where retirement budgets often get too optimistic. A savings balance that looks adequate before health insurance costs can look tighter once premiums, deductibles, prescriptions, and out-of-pocket costs are included.

Before you leave work, price out coverage year by year until 65. If the numbers are uncomfortable, working longer for health insurance can be a financial strategy.

Tax timing

If you were born in 1966, current required minimum distribution (RMD) rules likely give you until age 75 before you must start taking RMDs from many tax-deferred retirement accounts. That creates a long planning window after 60.

The window matters because withdrawals from traditional 401(k)s and traditional IRAs are generally taxable. If you retire before RMD age, you could have lower-income years when partial Roth conversions or planned withdrawals make sense.

This isn't a do-it-yourself guessing game if the numbers are significant. A tax professional or fiduciary financial advisor can help you compare the tax bill now with the possible tax bill later.

If you're behind

If your savings are below the age-60 average or median, start by finding the biggest lever you can actually pull.

For some people, that could mean increasing retirement contributions by 1% or 2% of pay and sending raises directly into savings. For others, it might mean delaying retirement, paying down high-interest debt, downsizing, or planning part-time work for a few years.

The key is to measure the gap honestly. Compare your expected retirement income, including Social Security, pensions, savings withdrawals, and other income, with your expected monthly spending. That tells you whether the gap is a real shortfall or simply a scary-looking account balance.

Bottom line

The average retirement savings number for people in their 60s is useful because it gives you a gut check. But your plan shouldn't rise or fall on one national benchmark.

At 60, you still have several meaningful choices left: how much to save, when to claim Social Security, whether to keep employer health coverage, and how to manage taxes before RMDs begin.

National benchmarks can help you put your savings in context, but they don't tell the whole story about whether you're on track for retirement. Check your balance, estimate your retirement income, and make one concrete adjustment this month if the numbers need work.

FAQs

You May Also Like

$200 Bonus + Up to 5% Cash Back

Earn a $200 bonus after spending $500 on purchases in your first 3 months from account opening. Member FDIC

SPONSORED

23 Ways To Get Money Without Getting A Second Job

By FinanceBuzz Editors

How To Save Money on Car Insurance: 12 Ways to Lower Rates

By Elyssa Kirkham

10 Things Seniors Born Between 1941-1969 Could Take Advantage Of

By FinanceBuzz Editors

19 Dumbest Things Smart People Waste Money On

By Team FBZ

7 Moves If You Want to Stop Living Paycheck to Paycheck

By FinanceBuzz Editors

7 Clever Ways to Crush Your Debt

By FinanceBuzz Editors

Save Money and Get Huge Discounts on Everyday Purchases

AARP Benefits

• Huge discounts on travel, groceries, prescriptions and more
• Access to financial planning resources and health tools
• Join AARP and get 25% off with automatic renewal

Become a member now!

---

Subscribe Today

Unlock the Best Banking Deals and Bonuses

From high-yield savings accounts to cashback checking and sign-up bonuses, we bring you the best banking offers to grow your money smarter.

or

SEE TOP BANKING OFFERS →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms