As you reach the age of 60, thoughts of retirement start to become more prevalent. The average retirement age in the United States is 61, but many individuals continue working well into their late 60s and beyond.
It’s crucial to assess your retirement savings at this stage in your life. With the end of your career in sight, knowing where you stand financially is key. Below, you’ll find information on the average 401(k) balance for 60-year-olds, as well as some tips on how to increase your savings if needed.
The average 60-year-old has anywhere from $70,000 to $210,000 in their 401(k) account. This wide range is due to varying reports from different sources. Vanguard states that Americans aged 55 to 64 have a median balance of $70,620 and an average balance of $232,710. On the other hand, Empower reports that Americans in their 60s have a median balance of $209,382 and an average balance of $555,621.
Experts suggest saving eight times your salary by age 60 and ten times your salary by age 67. Many individuals in their 60s may fall behind this guideline based on recent data. However, it’s important to note that some people have other forms of retirement savings, such as IRAs.
If you find yourself behind on your retirement savings at age 60, don’t worry. There are still steps you can take to increase your savings:
1. Max out your 401(k) contributions, including catch-up contributions if you’re 50 or older.
2. Contribute to an IRA to save on taxes.
3. Consider retiring later to save more and delay Social Security benefits.
4. Think about relocating or downsizing to reduce living costs.
Even if you can’t max out all your accounts, any contribution is beneficial. By making smart financial decisions and potentially working longer, you can still enjoy a financially secure retirement. Remember, it’s never too late to start saving for your future.
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