Here's The Average Retirement Savings of 78-Year-Old Americans (How Do You Compare?)

You spent your working life carefully building a tidy nest egg. Now that you're retired, you have to shift gears from saving to spending. Between health care costs, required minimum distributions, and inflation, you might struggle to know how to stretch your retirement dollars further — and even whether you have enough money to last the rest of your life.

While the "right" retirement savings amount doesn't exist, it can be helpful to compare your savings against the average retirement savings by age, and your age group in particular, to make sure you're still on the right financial track. In this article, we talk you through the average (or mean) and median retirement savings of 78-year-olds like you.

Average retirement savings for 78-year-old Americans

According to the most recent version of the Survey of Consumer Finances, which is published by the Board of Governors of the Federal Reserve System, Americans aged 75 and older have an average savings of around $462,410. The median is dramatically lower at $130,000.

Why are the average and median so different?

The mean (average) is easily skewed by very high and very low balances. A relatively small number of wealthy households can raise the average substantially, making it appear that the typical retiree has saved much more than most people actually have.

Since the median is the middle number in a set, it's likely a better reflection of the actual savings of an everyday 78-year-old retiree.

Why do 65- to 74-year-olds have more retirement savings?

You might think that the older you are, the higher your savings, but the truth is that savings peak when you're between 65 and 74 years old. The Survey of Consumer Finances reports that this age group has a median savings of $200,000 and a mean of $609,230 — far higher than the 75+ crowd.

Of course, by the time you're 78, you've likely been retired for at least a few years, if not more. Your focus isn't on actively building your savings but on carefully withdrawing funds to ensure your savings last the rest of your life. You likely spent a good portion of your savings between the ages of 65 and 74, which helps explain why the average 78-year-old has a far lower account balance than younger age groups.

What counts toward retirement savings?

The average and median numbers above don't reflect just one type of retirement account. Instead, they refer to the combined total held in 401(k)s and similar defined-contribution plans (like 403(b)s and the Thrift Savings Plan) and IRAs, including Roth IRAs. They don't include regular bank savings accounts, pensions, or Social Security.

Why don't retirement savings averages tell the whole story?

It's undeniable that your total retirement savings may impact your quality of life. However, it's also important to remember that you should have other income outside required withdrawals from your savings accounts — specifically, Social Security. Even if you've saved less than other people your age, the difference might not be as stark as you think if you can pad out those savings with your monthly benefits check.

On the other hand, retirement savings amounts don't say anything about the amount of debt you've brought with you into retirement. If you've saved more than the average amount, your savings won't stretch far if your budget is dominated by withdrawals for house payments, car loans, medical debt, and credit card debt.

How much should you worry about being behind?

It's not inherently bad to have a below-average amount of money saved. (After all, you might live in an area with a lower cost of living where your dollar stretches farther.) But if you're behind the curve and concerned that you could run through your retirement savings too quickly, you still have plenty of options for growing your retirement savings and ensuring those accounts last a lifetime.

Monetizing one of your hobbies, picking up a senior-friendly part-time job, talking with your financial advisor about diversifying your investment portfolio, and being careful about your tax and withdrawal strategies can all help preserve your retirement savings even while you're drawing from them.

Bottom line

Continuing to save money in retirement can be even more of a challenge than saving during your working life. Figuring out that your savings fall below the national average for your age group can be terrifying, but don't let these comparisons discourage you.

The truth is that there's no one-size-fits-all amount that every 78-year-old should have saved. The right amount for you depends on your lifestyle, cost of living, housing situation, health care needs, and more, all of which are highly specific to the individual. Instead of focusing on how your savings compare to the national average, compare the remaining amount to your spending habits, and don't forget that Social Security and other income can help flesh out your savings.

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