Outline:
Key Takeaways
- The typical 401(k) balance for individuals in their 60s stood at $568,040 by June 2025. The middle value of savings was significantly less, at $188,792.
- The amount you should have saved for retirement will vary based on your lifestyle and anticipated yearly expenses. A general guideline suggests saving eight times your annual income before retiring by the age of 60.
As you approach your 60s and retirement draws near, you may start reflecting more on your 401(k). You might wonder how your savings stack up against others in your age group and how much you actually require for a secure retirement.
Although it may be appealing to measure your savings against others, the amount you need to save will vary based on your planned retirement date and the lifestyle you desire during retirement.
Savings in a 401(k) During Your 60s: Understanding Average and Median Amounts
According to Empower, the typical401(k)A 60-year-old’s balance stood at $568,040 as of June 2025. This amount was somewhat less than the $607,055 average 401(k) balance for individuals in their 50s, likely due to the fact that some people in their 60s have already retired and started withdrawing funds from their 401(k) accounts.
Keep in mind that averages can be misleading: just a few 401(k) accounts with extremely high (or low) balances can significantly affect the average. That’s why themedianor a moderate individual is significant. The median figure in June 2025 was $188,792.
How Much Is Required to Retire?
If you’re examining these figures and feeling concerned abouthow does your own retirement savings measure up, you’re not alone. A survey conducted by Western & Southern Financial Group revealed that 47% ofBaby Boomers(who constitute the majority of individuals in their 60s, being the oldest members ofGeneration XReach 60 in 2025) feel uncertain about their capacity to retire comfortably. An additional 11% of Baby Boomers are uncertain if they will be able to retire comfortably.
The same survey clearly outlined the reason: Baby boomers think they need an average of $760,000 saved to retire comfortably. Gen X, on the other hand, anticipates needing even more: $1.18 million. The typical and middle 401(k) balances for individuals in their 60s fall well short of these figures.
Nevertheless, the amount required for retirement varies based on several elements, mainly your way of living and your well-being. Instead of focusing only on average figures, it’s beneficial to consider your individual circumstances to figure out how much you should set aside.
A retirement savings guideline recommends having eight times your annual income before retiring by the time you turn 60. For instance, if your yearly earnings are $75,000, you should have $600,000 in savings when you reach 60.
Another method relies onthe 4% rule, which implies that retirees take out 4% of their 401(k) in the initial year of retirement, and then adjust this amount for inflation in subsequent years. Using this guideline means you should have 25 times your yearly expenses saved. Therefore, if you anticipate spending $36,000 annually during retirement, you would need to have $900,000 saved.
Remember that many retirees do not rely solely on their 401(k) accounts. In the United States, most retirees receive Social Security payments. You might also have other investments, a traditional or Roth IRA, or a part-time job you intend to keep going during retirement to add to your 401(k) funds.
A survey conducted by Western & Southern revealed that 90% of Baby Boomers and 71% of Gen X individuals anticipate depending on Social Security as their main source of income during retirement, while approximately half of Millennials and Gen Z (55% and 51%, respectively) hold this expectation.
5 Strategies to Enhance Your Retirement Funds
If you’re in your 60s and your 401(k) isn’t where you’d like it to be, here’s how to increase your 401(k) savings in the final years before retirement.
1. Make Catch-Up Contributions
In 2025, the yearly contribution cap for 401(k) plans is $23,500 for most individuals. However, if you’re in your early 60s, you have the opportunity to save a larger amount. For those aged 60 to 63, there are extra options available.catch-up contributions$11,250, bringing the total to $34,750. If you are 64 years old or older, your additional contribution limit is $7,500, resulting in a total of $31,000 in 2025.
2. Use Workplace Benefits
Alexa Kane, a licensed financial advisor with Pearl Planning, suggests that individuals nearing retirement should maximize their workplace retirement benefits.
“If your employer offers a contribution towards retirement”contribute enough to receive the full match,” she said, even if you haven’t maximized your employer match previously.
Kane also recommended setting up automatic savings to eliminate the uncertainty in retirement contributions.
“Several retirement accounts can be configured to raise contributions by a specific percentage each year,” she stated.
3. Reallocate Assets
In general, investors usually have a higher proportion of stocks in their 401(k) accounts when they are younger, accepting greater risk in return for potential growth. It’s typical to move toward a more cautious mix of stocks, bonds, and other investments as you approach retirement. If your 401(k) is invested in atarget-date fund, then this change occurs automatically.
If you’re in your 60s but believe you haven’t saved enough, avoid quickly moving all your investments to low-risk options. Focusing on growth for a little longer could lead to substantial gains in your 401(k) during this decade. As you approach retirement, slowly moving towards bonds and reducing stock exposure can help safeguard your savings.
Tip
A financial advisor can evaluatewhat is the most effective asset allocation strategyfor you and give you guidance on when that distribution should be adjusted.
4. Consider Downsizing Now
If you’re among the 51% intending to reduce your living space in retirement,consider downsizingyour current housing arrangement. Moving to a smaller home before retiring can greatly lower your living costs by cutting down on expenses like:
- Property taxes
- Home maintenance and repair
- Homeowners insurance
- Utility bills
If you are conscious of where you goYou can even focus on factors such as proximity to public transit, which can help lower your living costs by enabling you to drive less or own fewer vehicles.
Reducing your daily costs can help you save more moneytax-advantagedstarting retirement accounts now, allowing the funds to increase over time. This may be particularly beneficial if you’re aiming to maximize your additional contributions in your early 60s, when you can invest even more into your 401(k)pretax.
5. Collaborate with a Mentor
Collaborating with a financial advisor as you near retirement can assist you in determining not only the amount of money to save, but also the type of retirement you desire and the steps needed to achieve it.
There are numerous images associated with retirement,” Kane stated. “When it comes to any retirement plan, we often say, ‘You can do anything, but not everything.’ Each choice has its advantages and disadvantages.
Consulting with a mentor can assist you in evaluating your alternatives and understanding the compromises you may need to accept when making specific decisions. For instance,Many older adults enjoy the concept of residing in another country.to gain entry to a more economical lifestyle, featuring reduced healthcare expenses. However, the decision isn’t solely about opting for a pricier life in one nation versus a more budget-friendly one in another.
A significant international relocation demands thorough planning and knowledge of relevant laws and regulations,” Kane stated. “You are still obligated to submit U.S. tax returns while residing overseas. You must also be aware of theForeign Earned Income Exemption (FEIE) and the Foreign Tax Credit (FTC).”
A financial consultant can guide you through all these factors and assist you in determining which type of retirement is appropriate according to your available resources and personal goals.
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