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Here's The Average Retirement Savings of 68-Year-Old Americans (How Do You Compare?)

Average vs. median savings at 68 and what it means for you.

By Josh Koebert , Edited by Laura Hohenstein

Updated Aug. 13, 2026

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By 68, retirement is no longer a distant idea. Many people are already drawing income from their savings or preparing to do so soon. That makes this a critical checkpoint. The numbers here provide context, not judgment.

Some retirees reach this age and realize they have made a few surprising financial mistakes, especially around withdrawals or budgeting. Seeing where you stand today could help you adjust your plan while you still have options. Let's look at the data and what it means in real life.

Editor's note: Retirement savings data is sourced from the Federal Reserve's most recent Survey of Consumer Finances.

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The average retirement savings for 68-year-olds

According to the Federal Reserve, households ages 65 to 74 have:

Average retirement savings: about $609,000
Median retirement savings: about $200,000

Notice the large gap between these numbers. Higher-balance households raise the average, while many people fall closer to the median. If you have savings near the $200,000 range, you're in the most common position. That also means careful planning becomes more important as you move through retirement.

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Why the median matters more than the average

The average can create unrealistic expectations. A six-figure gap between average and median tells you the typical experience looks very different. The median of $200,000 reflects the midpoint. Half of households have less than that amount, while half have more.

That makes it a much better reference point for most readers. If you're around the median, you have the amount that most random 68-year-olds have. If you're closer to the average, you're ahead of the average household.

What retirement income might look like at this level

For households with $200,000 to $600,000 in savings, income often comes from multiple sources, including Social Security, withdrawals from retirement accounts, and maybe even a pension.

At a conservative withdrawal rate of 3% to 4%, this amount of savings could produce $6,000 to $24,000. This income can support a retirement plan, but it usually works alongside Social Security rather than replacing it.

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The hidden risks people underestimate at 68

Several risks tend to stick out at this stage of retirement. Health care costs are a major concern. Medicare helps, but out-of-pocket expenses can still be significant. Longevity is another factor. A healthy 68-year-old may need savings to last 20 years or longer.

Market timing also matters. Early losses combined with withdrawals can reduce how long a portfolio lasts. This risk is often overlooked until it becomes a problem down the road.

How your savings compare does not tell the full story

Comparison can be helpful, but it has limits. Your financial position depends on more than just how much you have in the bank. It's more about how your income level compares to your monthly expenses.

Someone with lower savings may be in a great position if they have relatively low monthly expenses and are relatively healthy. However, someone with higher savings could struggle to make ends meet if high fixed costs and medical bills combine.

It's the context that's important, not just how one person compares to another.

Practical ways to strengthen your position

It may seem too late to do much at 68, but there are still steps you can take to strengthen your financial position.

For instance:

Delaying Social Security if possible: Senior benefits increase by about 8% per year until age 70
Reducing unnecessary expenses: Small changes can add up over time
Reviewing your withdrawal strategy: A steady approach can help preserve your balance
Earning part-time income: Even limited income can ease pressure on savings

These actions may help extend the life of your portfolio without requiring major lifestyle changes. The earlier you make these changes, the more impact they have.

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A quick reality check most people skip

Retirement spending doesn't typically stay the same throughout all of retirement. Many retirees spend the most in early retirement when they're active and less during the middle years. However, spending can ramp up later due to health care costs.

If your plan assumes steady spending every year, it may not reflect how costs actually unfold. Adjusting for this pattern could help you plan more effectively.

Bottom line

Comparing your retirement savings to others can give you a general ballpark of how you're doing, but it doesn't represent the whole story. Instead, how your monthly income compares to your monthly expenses matters far more. The median balance shows that many people are working with limited resources and leaning heavily on Social Security to stretch their retirement dollars further.

Don't overlook Required Minimum Distributions, which begin at age 73 for most people. These forced withdrawals can potentially raise your Medicare premiums and income taxes, depending on how much you make in a year. Planning ahead for RMDs now by adjusting withdrawals or considering Roth conversions could help smooth out taxes later and give you more control over your income.

FAQs

What is IRMAA and who has to pay it?

IRMAA (Income-Related Monthly Adjustment Amount) is a surcharge added to Medicare Part B and Part D premiums for higher-income enrollees. In 2026 it applies when modified adjusted gross income tops $109,000 for single filers or $218,000 for joint filers, based on the tax return filed two years earlier. The standard Part B premium is $202.90 a month in 2026, and the surcharge adds between $81.20 and $487 a month depending on which of the five income tiers you land in.

What is the average Social Security check in 2026?

The Social Security Administration puts the average monthly retirement benefit at about $2,071 in 2026, which works out to roughly $24,850 a year. Your own amount depends on your highest 35 years of earnings and the age you claimed. Filing at 62 could cut your benefit by about 30% compared with your full retirement age amount, while waiting past full retirement age adds about 8% a year up to age 70.

Can you still contribute to an IRA at 68?

Yes, as long as you have taxable compensation such as wages or self-employment income. The SECURE Act removed the old age cap on traditional IRA contributions starting in 2020. For 2026, the IRA contribution limit is $7,500, plus a $1,100 catch-up contribution for anyone 50 or older, for a total of $8,600. Social Security benefits and investment income do not count as compensation for this purpose.

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