Retirement Retirement Planning

Here's the Average Retirement Savings of 87-Year-Old Americans (How Do You Compare?)

See how retirement savings at age 87 compare to your own nest egg.

By Josh Koebert , Edited by Laura Hohenstein

Updated Nov. 10, 2026

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At 87, most people have long since shifted their thinking from "how do I grow my money" to "how do I make sure this lasts." If you're trying to save money in retirement or help an aging parent understand where they stand financially, the numbers from federal surveys offer a useful starting point, even if they raise more questions than they answer.

Here, we're breaking down what Americans in their late 80s typically have saved, what actually drives financial security at this age, and what steps families can take to make sure nothing falls through the cracks.

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What the data actually shows

The Federal Reserve's 2025 Survey of Consumer Finances, the most recent available, reports that households headed by someone 75 or older hold a median retirement account balance of $143,360. The average is $508,550.

That gap between the median and the average is important. The average gets pulled up sharply by a small number of retirees with very large balances. The median, meaning the middle point where half of households have more and half have less, gives a more realistic picture of what most people actually have.

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Many households at this age have no retirement account at all

Here's the detail that changes how to read those numbers: only about 44.6% of households headed by someone 75 or older hold a retirement account of any kind. The other 55% have no IRA, no 401(k), and no similar account.

The median and average figures above describe only the households that still hold accounts. They say nothing about the majority of older Americans who don't.

For those who do have a 401(k), Empower data shows that people in their 80s hold a median balance of $77,165, compared to $98,229 for people in their 70s. Balances decline in the 80s partly because people are drawing down their savings, as they're supposed to.

What actually determines security at 87

For most people in their late 80s, retirement account balances matter less than a few other factors.

Social Security is typically the foundation. Americans aged 85 to 89 receive an average Social Security benefit of about $2,271 per month, according to SSA data. For many households at this age, that check covers most or all of basic living expenses.

Home equity is the other major asset. A home owned outright provides housing at no monthly mortgage cost and represents a source of funds if care needs grow. Reverse mortgages, downsizing, or renting out a portion of a property are all ways that equity can be converted to income if needed.

Pension or annuity income provides the kind of guaranteed monthly payment that account balances cannot. Older retirees, particularly those who worked in government, education, or manufacturing, are more likely to receive pension income than younger generations. If that income stream is in place, the account balance becomes less critical.

Long-term care costs are the biggest wildcard. A semi-private nursing home room now costs a median of about $115,000 per year, with private rooms running closer to $130,000, according to CareScout's 2025 Cost of Care Survey. Even a modest stay can quickly exceed what most people have saved. Medicaid covers nursing home costs once savings are largely spent down, but qualifying rules vary by state.

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For adult children: three things worth checking now

If you're reading this on behalf of a parent, there are a few practical issues worth addressing before they become urgent.

Beneficiary designations

Retirement accounts pass down outside of a will. The person listed as beneficiary receives the account regardless of what any other legal document says. These designations should be reviewed and updated, especially after a spouse's death or family changes.

Consolidating old accounts

Many older adults have retirement accounts scattered across former employers. Small, forgotten accounts are easy to miss and difficult to manage. Rolling them into a single IRA simplifies things and reduces the chance that an account gets overlooked entirely.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

Account access

Someone should know where accounts are held, what the login credentials are, and who has power of attorney to manage them if needed. This is not a conversation that gets easier to delay.

Benefits that often go unclaimed

Many older Americans leave money on the table simply because they don't know they qualify. The National Council on Aging estimates that about $58 billion in benefits goes unclaimed by older adults each year, spread across programs including SNAP, Supplemental Security Income, and Medicare Savings Programs.

SNAP alone provides an average benefit of $188 per month to eligible older adults living alone, yet only 38% of those who qualify actually enroll. Medicare Savings Programs can cover the Part B premium, worth more than $2,400 per year, but nearly half of eligible seniors are not enrolled.

BenefitsCheckUp.org, run by the National Council on Aging, offers a free screening tool to check eligibility across federal and state programs.

Bottom line

For most 87-year-olds, staying on track for retirement depends less on a retirement account balance and more on a combination of Social Security, a paid-off home, and low fixed expenses.

The median balance of $143,360 describes only the minority of households that still hold an account at all, so comparing your savings to that number without context can be misleading.

FAQs

Does home equity count as retirement savings?

Home equity contributes to your net worth, but it is not readily available cash. If you plan to use it for retirement expenses, consider how you would access it and what that would cost. Selling a home, for example, also means accounting for moving expenses and your next housing arrangement.

How do I know whether my savings will last at 87?

Start by comparing your monthly expenses with reliable income from Social Security, pensions, and other sources. The amount you need to withdraw from savings to cover the difference matters more than how your balance compares with an average. Include occasional expenses, such as home repairs, and potential increases in care costs.

What should I do if I'm behind on retirement savings at 87?

Start by comparing your monthly income with essential expenses, including housing, food, utilities, and medical care. If there's a shortfall, look for costs you can reduce and ask creditors or service providers about payment options.

Prioritize necessities if you cannot cover every bill. A trusted family member or your local Area Agency on Aging can also help you review your budget and identify assistance programs. Focus on making your available resources cover your needs rather than reaching an average savings balance.

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