Here's The Average Retirement Savings of 63-Year-Old Americans (How Do You Compare?)

The traditional retirement age in the U.S. is 65, but some workers are delaying retirement a few years to save more money and put off claiming Social Security. If you are age 63, now is the time to get your finances in order so that your golden years get off to the right start. It is also the time to start thinking seriously about what age you realistically can retire.

Here is the average retirement savings for 63-year-old Americans. See how your retirement savings stacks up against peers and learn the steps that can shore up your finances before you leave work for good.

Average retirement savings for 63-year-olds

Americans in their 60s have an average net worth of $1.58 million, according to financial services company Empower.

Before you panic, it's important to note that most Americans in their 60s have saved far less than that. More on that in just a moment.

Looking more closely at retirement savings, Fidelity reports that the average 401(k) balance for workers between the ages of 60 and 64 is $257,400.

Why the average doesn't tell the full story

An average net worth of $1.58 million for people in their 60s can sound daunting. But, it's important to understand exactly what the average represents.

To calculate an "average," you add up the total value of everything in a given set, then divide that number by the amount of items in the set.

Thus, the average includes both the richest and poorest people in their 60s. That fact can dramatically skew the average higher, since the very richest Americans push the number up.

The median might offer a more realistic view

By contrast, the median presents a more accurate picture. The median is the halfway point between the highest and lowest numbers in a set.

According to Empower, the median amount of savings for someone in their 60s is $274,564. That is still relatively high but more within the reach of many people in this age group.

How much should you aim to have saved at 63?

The amount of retirement savings you require depends on many factors. To drill down on this number, start asking yourself a few questions:

• What is my expected cost of living in retirement?
• Do I have a lot of debt?
• Will I travel during retirement?
• Am I willing to downsize my living quarters once leave work?

The answers to such questions provide a start in determining how much you will need to save. Meeting with a financial advisor can help you get an even better sense of the right figure for you.

Rules of thumb to consider

Having said that, many financial services firms offer rules of thumb that might provide a good estimate of how much you need to save.

Fidelity says people who are 60 should have saved the equivalent of about eight times their annual salary before they retire. By the time you reach 67, the amount should be 10 times your salary.

At the financial services company T. Rowe Price, experts recommend saving nine times your salary by age 60 and 11 times your salary by age 65.

What to do if you need to catch up

If you are 63 and have not saved enough, know that there is still time to turn things around. There are many steps you can take that will help you build a nest egg late in your career.

Here are some tips for strengthening the financial foundation of your retirement.

Take advantage of the 60-63 catch-up contribution boost

If you're 60 to 63 years old, the IRS gives you a bigger catch-up contribution window than everyone else. For 2026, workers in this age range can contribute up to $11,250 in catch-up contributions to a 401(k), on top of the standard $24,500 limit, for a total of $35,750 for the year. That's $3,250 more than the regular 50-and-over catch-up amount.

This window closes once you turn 64, so it's worth maxing out while it's available if your budget allows it. If your plan offers an employer match, contributing enough to capture the full match should still come first, but anything beyond that can go toward this higher limit.

Delay retirement

Few workers want to put off the day when they kiss work goodbye. But delaying retirement might be the single best move to make if your finances are not where you would like them to be.

Continuing to work allows you to pad your savings and to delay tapping into your retirement accounts too early.

Working longer also might help you put off filing for Social Security benefits, which can mean larger monthly checks later in retirement.

Increase income

Boosting your income is another great way to quickly increase retirement savings. If you are overdue for a raise, talk to your boss about an increase. If that fails, consider looking for more lucrative pay with a new employer.

Another option is to remain in your current job but also take on part-time work or develop a side hustle that brings in regular income.

Cut expenses and eliminate debt

Debt is the ultimate wealth-killer. It is difficult to build savings when the anchor of high-interest credit card debt is pulling you down.

The sooner you get rid of debt, the better. So, look at your budget and try to eliminate unnecessary expenses. For example, drop subscriptions to streaming services and magazines and eat out less often.

Then, use the savings from these moves to pay down debt. Once the debt is gone, use the same savings to build a bigger retirement nest egg.

Take on a bit more risk

History's verdict is clear: Investing in the stock market is among the best ways to build wealth.

So, if you have not invested in stocks, mutual funds, and ETFs in the past, now might be the time to consider doing so.

Before you take the plunge, it's crucial to understand the risks of investing. The stock market can be the source of both enormous gains and equally large losses.

A financial advisor can help you look at your financial goals and to determine how much risk you should take on when investing.

Bottom line

By the time you turn 63, retirement is right around the corner. If you haven't already made a retirement plan, now is the time to do so.

Following some of the steps in this list can help you grow your wealth so you can begin your golden years in style.

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