The Average Net Worth of Americans at 60, And The 7 Assets Separating the Comfortable From the Struggling

Turning 60 is a huge milestone towards retirement. Even people who have spent decades working and saving often start wondering where they stand compared to everyone else. Is their financial picture typical? Are they ahead of the curve or running behind?

Net worth is one metric that workers can use to see how on track for retirement they are. While it doesn't tell the whole story, it offers a glimpse of what's needed for financial stability in retirement. Here's the average net worth of a 60-year-old, as well as the assets that can help create financial stability.

The average 60-year-old has far more wealth than the median

Federal Reserve data shows that Americans nearing retirement have an average net worth of about $1.57 million, but the median is only about $364,000. Those two numbers tell completely different stories.

The difference is more than $1.2 million.

Many people see the average figure and immediately feel behind. In reality, the median often provides a better benchmark because it represents the midpoint. Half of households have more, and half have less. For anyone trying to check up on their retirement readiness, that number paints a more realistic picture.

Home equity is one of the biggest retirement assets

Many people approaching retirement find that a huge portion of their net worth is tied up in their home.

Home values have risen steadily over the past decade. The median existing home price reached about $403,000 during the first quarter of 2026, and many longtime homeowners have built substantial equity through a combination of appreciation and years of mortgage payments.

A home doesn't generate retirement income the way an investment account can. Still, it represents a valuable financial resource. Some retirees eventually downsize, while others benefit simply from entering retirement with a paid-off mortgage and lower monthly expenses.

Retirement accounts create one of the biggest differences

One of the clearest dividing lines among Americans nearing retirement is whether they have retirement savings, which count toward net worth.

Research suggests that roughly 45% of households approaching retirement have no retirement savings at all. That leaves little room for unexpected expenses and puts greater pressure on Social Security benefits to cover daily living costs.

Meanwhile, people who spent years contributing to workplace plans or IRAs often enter retirement with another source of income they can tap when needed. The account doesn't have to contain millions of dollars to make a difference. Even a moderate balance can provide flexibility during market downturns, major repairs, or medical emergencies.

Catch-up contributions give 60-year-olds extra runway

For workers who feel behind on retirement savings, age 60 comes with a specific advantage that's easy to overlook. Under the SECURE 2.0 Act, workers ages 60 through 63 can make what the IRS calls "super catch-up" contributions to a 401(k) of up to $11,250 per year on top of the standard contribution limit. That's meaningfully larger than the $8,000 catch-up available to workers 50 and older in most years.

Delaying Social Security could be helpful

Many Americans claim Social Security as soon as they become eligible at age 62. For many households, that's the right decision. Others may benefit from waiting.

Monthly benefits increase for workers who delay claiming beyond age 62, up to age 70. The increase can be substantial over time, particularly for people who spend two or three decades in retirement. A larger Social Security benefit can also protect against longevity risk. 

Unlike most investments, Social Security provides income for life, which can become increasingly valuable as retirees age.

High-interest debt can stick around into retirement

Debt doesn't disappear just because someone leaves the workforce. Credit card balances and other high-interest obligations can consume a surprising amount of income each month. That becomes a challenge when paychecks stop, and households begin relying on fixed sources of income.

Many financially secure retirees enter retirement with little or no consumer debt. Paying off high-interest balances during the final working years often frees up cash flow and reduces financial stress later.

Health care costs are often higher than expected

Health care remains one of the biggest expenses in retirement. Fidelity estimates that a 65-year-old retiring today could spend $172,500 on health care throughout their retirement.

Many workers assume Medicare will cover most of their costs. However, retirees must still pay premiums, deductibles, copays, prescription drug costs, dental care, vision, and potentially long-term costs. Those expenses can add up quickly, especially over a long retirement.

People who plan ahead for health care spending often have an easier time adjusting to retirement than those who focus exclusively on investment balances.

Cash savings still matter

Retirement planning tends to focus on investment accounts, but accessible cash is still important. Unexpected expenses don't end just because retirement began. Homes need repairs, and vehicles still break down.

Having money set aside in savings can help retirees handle those situations without turning to credit cards or withdrawing investments during a market decline. A health emergency fund might not get as much attention as a large investment account, but it often plays a more important role in long-term financial stability.

Reliable income often matters more than net worth

Two households can have identical net worths and experience retirement very differently.

What often matters most is how much dependable income arrives each month. Social Security benefits, pensions, retirement account withdrawals, annuities, and part-time work can all contribute to a more stable retirement.

Retirees with predictable income sources often report feeling more comfortable financially, even when their overall net worth isn't exceptionally high. Knowing that bills can be covered month after month provides a level of confidence that asset values alone don't always deliver.

Bottom line

The average 60-year-old's net worth might grab headlines, but the assets behind that number matter far more. Home equity, retirement savings, manageable debt, and a decent cash reserve often have a bigger impact on day-to-day financial stability than hitting certain net worth milestones. If you're approaching retirement, now is a good time to check up on your retirement readiness and identify any gaps that still need attention.

Spending often matters just as much as saving. Household spending may decline after retirement as commuting costs, payroll taxes, and similar expenses disappear. However, true financial security comes from spending less than you have available, and that remains true in retirement.

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