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Here's The Average Retirement Savings of 65-Year-Old Americans (How Do You Compare?)

Here's how much the average 65-year-old has saved for retirement and what you can do if you're not where you want to be.

By Andy Lindquist

Edited by Lisa Dammeyer

Updated Dec. 6, 2025

Hitting 65 is a significant milestone, and it's not one to be overlooked. You're now at the age where your retirement plan will be put to the test as you begin to take Social Security, pull from your 401(k) or IRA, and receive pension benefits.

It's also a time for you to examine your overall retirement savings across all of your accounts and compare them to your peers. Having a clearer picture of your financial health as you reach retirement age is a good way to avoid money mistakes that can sink seniors.

Keep in mind that there is a significant difference between the average and median retirement savings for 65-year-olds, as well as the considerable variance that depends on market conditions.

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Average retirement savings for 65-year-olds

The average retirement account for those aged 65–74 amounted to $609,230, according to data from the 2022 Federal Reserve Survey of Consumer Finances (SCF). The median amount was $200,000. The numbers can be misleading for several reasons, though.

First, this represents the entire age bracket, so once you hit 65, you're at the low end compared to older individuals. Second, the average is skewed by the presence of high earners, making it an unfair comparison.

So, the median number of $200,000 gives you a much better baseline for comparing yourself to the average American in your age bracket.

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How much should you aim to have saved at 65

A good rule of thumb is to have 10 times your yearly salary saved up in your accounts by the time you're 67, according to Fidelity. That means at 65, you'd ideally have nearly 10 times what your current annual wage is.

For example, if you are earning $100,000 a year before retirement, aiming for somewhere between $800,000 and $1,200,000 in savings by age 65 would be a reasonable target depending on how early you want to retire, how much you'll rely on other sources, how aggressively you save, and so on.

What to do if you need to catch up

If you look at your own savings and realize you're below these benchmarks, don't panic too much. The good news is that it's not too late, and there are some strategies you can take advantage of if you're over 50.

Yes, you can still take steps to improve your retirement readiness. However, that might mean delaying your retirement a bit.

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Take advantage of catch-up contributions

If you're feeling behind, there are a few crucial investment and savings strategies you can use to build your accounts with more cash.

First, if you're over 50, you qualify for higher annual contributions, which can make a meaningful difference when compounded over several years. Here's the breakdown:

Traditional or Roth IRAs (2025) 

Standard limit: $7,000
Catch-up limit (age 50+): $1,000
Total possible: $8,000

401(k) and similar workplace plans (2025)

Standard limit: $23,500
Catch-up limit (age 50+): $7,500
Total possible: $31,000

Change up your budgeting

While contributing more to your investments can be a game-changer, it's important to also take a big-picture look at your spending and saving. You can start cutting down expenses and saving more money beyond just the cash you put in your retirement accounts.

Reducing your spending and cutting back on luxuries is a good place to start to live a more modest lifestyle and stretch your funds in retirement.

Delay retirement and Social Security

If you're able to, pushing your retirement age can significantly increase your savings. If you're still working, you won't have to draw from your accounts, allowing them to continue to grow.

Also, consider pushing back your Social Security. Every year you delay taking your Social Security can increase your benefit by about 8% until age 70. That can make a significant difference in your monthly cash flow, so you won't need to take out so much from your other accounts.

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Increase your income

If you're still working, explore ways to increase your salary, change to a higher-paying job, take on consulting or freelance work, or start a side business. The extra income can be directed toward savings and help reduce pressure on your retirement assets.

For any lump sum (inheritance, bonus, business sale, home sale) you receive, consider directing a portion into retirement savings rather than spending all of it. This is especially relevant if you're catching up.

Downsize and sell your primary residence

If you've been living in your house for long enough, moving to a smaller condo or retirement community can be a great move. You can take the difference between the sale price of your home and the cost of the new residence and put it into your retirement accounts.

Housing is often the largest expense for older households, so consider moving to a low-tax state like Texas or Florida to save even more.

Bottom line

Most 65-year-olds have far less saved than the averages suggest, and even though the median provides a clearer benchmark (around $200,000 in retirement accounts), many retirees fall short.

But that's OK. You still have powerful tools at your disposal, including catch-up contributions, working a few more years, delaying Social Security, cutting expenses, and potentially downsizing your home. Doing so can make a significant impact on your retirement plan.

Even better, research shows that retirees consistently spend less than they expect. A RAND Corporation study found that real spending declines for retirees in their late 60s and beyond — about 1.7% per year for single households and 2.4% per year for couples, adjusted for inflation.

That means, if you keep stacking cash and investing prudently, you can wind up with more than enough money to live a comfortable retirement lifestyle.

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