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10 Signs You’re Doing Better Than the Average American Over 60

If you've hit these retirement milestones, you're ahead of peers.

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Updated May 15, 2025
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As you enter your 60s — and get closer to retirement — it is important to make sure you're in a good financial position before bowing out of full-time work.

Planning for retirement means having enough monthly income to sustain yourself without sinking into debt. Here are 10 signs that you are financially well ahead of the average American in their 60s.

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Your total net worth is more than $1.5 million

shurkin_son/Adobe lady of 50s in plaid blazer having online meeting

The average net worth of households between the ages of 55-64 is $1.56 million, according to the Federal Reserve. However, high-earning individuals skew the average much higher.

The median net worth of American households in the 55-64 age range is $364,270. The median is the midpoint in a data set. That means half of people in this example have more than $364,270 and half have less.

So, if you are near the median, you are doing fine. But if you are near the average, it is a truly great sign as you head into retirement.

You've saved $573,624 or more in your 401(k)

Maksim Shchur/Adobe pension savings

A 401(k) offers a great way to save for retirement. It provides major tax advantages and often comes with employer contributions.

The average 401(k) savings of someone in their 60s is $573,624, while the median savings is $210,724, according to Empower.

If you are around the median or average in terms of 401 (k) savings, it puts you in a strong position heading into retirement.

You're not spending more than $504 monthly on groceries

Prostock-studio/Adobe female customer checking shopping list on smartphone

Households spend an average of $504 a month on groceries, according to the U.S. Bureau of Labor Statistics.

There are plenty of ways to reduce your monthly food bill. So, try to stock up on items that are on sale and use coupons to lower costs.

Resolve $10,000 or more of your debt

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You have more than $350,000 in home equity

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One of the main barometers of financial fitness is the amount of home equity you possess.

According to the Federal Reserve, the median home equity for an American household in the 55-64 age bracket is $350,000.

If you're above the median, you are sitting in a strong position when it comes to equity.

You have more than $600 in an emergency fund

Monkey Business/Adobe senior couple using digital tablet

Having a solid emergency fund is crucial when you face a major unexpected expense. The median emergency savings for an American is $600, according to Empower.

Alas, 21% of Americans have no emergency fund at all. If you have a good cash pile stashed away in case of emergency, you're in a good spot.

You have less than $52,401 in debt

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Debt and the associated interest payments that come with it can be crippling to your cash flow as you age. Americans in the baby boomer generation (aged 59-77) have an average of $52,401 in total debt, according to Credit Karma.

A mountain of debt can severely impact your financial and personal health later in life. So if you're below the average, you're in a strong financial position.

You have no credit card debt

Robert/Adobe senior couple have fun online shopping

Considering the sky-high interest rates attached to credit cards, being free of this type of debt is a huge financial win.

Nearly half of U.S. households 65 or older had some kind of debt outside of a mortgage in 2019, according to the National Council on Aging. The vast majority of them — 85% — carried credit card balances.

Managing to get out of debt or avoiding the dreaded credit card trap in the first place frees up cash reserves for plenty of other things.

You have less than $22,530 in auto loan debt

speed300/Adobe Senior man opens the door of his car

Car loans are another huge expense that eats into the finances of the average American. Those who are 59-77 have an average of $22,530 in car loans, according to Credit Karma.

If your debt load is lower than this — or if you have paid off the loan altogether — you are doing better than peers.

You have no medical debt

Lumos sp/Adobe showing caregiver help assistence retirement

Debt arising from medical bills can place a burden on older adults. In 2020, 7% of adults — 4 million people — aged 65 and older had unpaid medical bills, according to the Consumer Financial Protection Bureau.

Avoiding medical debt means managing health care expenses effectively. This is especially important as you age, because you are more likely to require frequent medical care.

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Your total monthly expenditures are below $4,345

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In 2021, individuals aged 65 and older spent an average of $52,141 on wants and needs, according to data from the Bureau of Labor Statistics. That is about $4,345 per month.

If your monthly spending is below this amount, you're managing expenses more efficiently. That will help you get ahead financially, which bodes well for you during retirement.

Bottom line

Yingyaipumi/Adobe Happily retired couple at sunset

If you've achieved most of these financial milestones, you're among those setting the pace among Americans who are over 60. You have found a way to shore up your finances and maximize your retirement savings.

So, pat yourself on the back: Having your financial situation figured out should be a huge relief. You might even be in a good position to step away from full-time work to pursue other interests.

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