6 Signs You're Doing Worse Financially Than the Average 60-Year-Old

When you see neighbors buying new cars every year or posting vacation pictures online, it can make you wonder where you stand financially.

Taking an honest look at your finances can be sobering. But in the long run, it can also eliminate some money stress by helping you to see where you truly stand, and what you need to do to fix things

If you are 60 years old, here are some signs that you are doing worse than your peers — and some suggestions for fixing the problem.

The average weekly wage for workers between the ages of 55 to 64 is $1,268, according to the U.S. Bureau of Labor Statistics. That is equivalent to $65,936 annually.

If you’re making less than that, it could be due to where you live, the career field you have chosen, or other factors. Regardless of the reason, changing jobs or increasing your income can help you achieve financial goals.

Thanks to the Vanguard “How America Saves” report, we know that on average, folks between the ages of 55 and 64 have saved $244,750 in a 401(k) account.

However, that number is deceiving, because savers at the extreme high and low ends can skew the numbers.

The median is the middle number, meaning there are equal amounts of account balances higher and lower. The median 401(k) balance for this age group is $87,571, which might offer a more accurate picture of where most people stand.

The average amount of non-mortgage debt for people between the ages of 60 and 69 is $16,661, according to Debt.org. This type of debt includes credit cards, car loans, and other personal debt.

If you want to get a leg up on your peers financially, reducing your debt can help.

Housing is typically one the biggest expenses in any household. Heading toward retirement, you want that expense to be manageable.

Credit Karma did a member survey and discovered that those ages 50 to 77 had an average mortgage balance of $188,034. If you owe more than that on your home, you may be worse off than your neighbors.

Your credit score is an evaluation of how well you manage your debt and lines of credit. The average credit score for people ages 59 to 77 in 2023 was 745, according to Experian.

Credit scores are broken up into categories ranging from excellent to poor. A score of 745 is considered very good. If you fall below that, you may be denied new lines of credit or may be required to pay higher interest rates.

Net worth is a way to measure your overall wealth and financial situation. Add up all your assets and subtract any liabilities to arrive at your net worth.

The average person in their 60s has a net worth of $1,689,144, according to data from Credit Empower. The median net worth for individuals in their 60s is $439,050.

Money is still a fairly taboo topic. But it’s important to be honest with yourself about how you are spending and saving.

So, if you find yourself worse off than the average 60-year-old, here are some steps you can take to get ahead and improve your financial situation.

Those with a college degree earn $1.2 million more in lifetime earnings than those whose education ends with a high school diploma, according to the Association of Public & Land-Grant Universities.

Acquiring additional skills clearly can help you improve your finances.

Whether you change jobs or add a side hustle, additional income can help you reach financial goals faster.

Just be careful not to spend those new or enhanced paychecks. While it’s tempting to spend money on clothes, cars, and eating out, none of those things will add to your net worth.

Your future self will thank you for setting aside money for a rainy day and for building wealth that you can tap into during retirement.

Take advantage of tax incentives and employer matching programs related to retirement savings accounts. Doing so helps you to make the most of your money.

Few financial moves will pay dividends as much as paying off high-interest debt.

Not only can doing so reduce your monthly bills, but it can also improve your credit score and boost your cash flow.

If you want to set yourself up for retirement, regularly analyzing your financial standing is a good place to start.

While numbers don’t always tell the complete story, your net worth is a good indicator of how well you’re doing.

Focus on making small improvements to your spending and budgeting habits. Consistent and concentrated efforts can have a big impact when compounded over time.