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The amount of money you should have saved in your 401(k) by the time you’re 60 is personal. It depends on your income, lifestyle, and goals. But since many Americans plan to retire in their 60s, it’s important to consider whether you’ve set aside enough funds to leave your job for good. Knowing how much your peers have saved can be a helpful measure.
In 2023, retirement plan participants between the ages of 55 and 64 had an average balance of $244,750, according to Vanguard’s annual “How America Saves” report. The median amount saved—that is, half saved more, and half saved less—was $87,571.
Key Takeaways
- The average retirement saver between the ages of 55 and 64 saved $244,750 in their 401(k) in 2023, according to Vanguard. The median amount saved was $87,571.
- Empower found the average amount saved for someone in their 60s was $571,807 (median: $206,719), while Fidelity Investments says Generation X’s average 401(k) balance is $191,900.
- Ideally, you want to save enough to have 80% of your pre-retirement income in retirement.
The Average 60-Year-Old’s 401(k)
Many financial services companies publish data on the average 401(k) balances by age, and their figures can vary drastically. While Vanguard reported the $244,750 (average) and $87,571 (median) figures as stated above, Empower recently reported that the average 401(k) balance of someone in their 60s is $571,807, and the median is $206,719.
Meanwhile, Fidelity Investments said in its third-quarter 2024 “Building Financial Futures” presentation that the average balance for its Generation X participants is $191,900. (Gen X is comprised of individuals who were born between 1965 and 1980.)
Only 67% of private industry workers, 63% of civilian workers, 47% of small business workers, and 39% of state and local government workers have access to a defined contribution retirement plan, like a 401(k). But there are still tax-advantaged retirement accounts you can set up for yourself, such as an individual retirement account (IRA).
How Much Retirement Savings You Should Have by Age 60
Fidelity recommends that you save at least eight times your annual salary by age 60. T. Rowe Price’s savings guidelines state that you should have 6 to 11 times your salary saved by age 60.
Another industry-wide recommendation is the 80% rule, which says that you should save enough to have 80% of your pre-retirement annual income in retirement to maintain a similar standard of living. For example, if your salary while working is $80,000, you’d want to save enough to have $64,000 for each year of your retirement.
If you’re confused about what all that means for you? Talk with a financial advisor about your specific circumstances and goals.
For workers over 50, you can make catch-up contributions every year on top of the annual limits. In 2025, that’s an extra $7,500 for a 401(k), 403(b), or Thrift Savings Plan; $1,000 for a traditional or Roth IRA; and $3,500 for a SIMPLE IRA.
How to Save for Retirement
Many retirees and those approaching retirement haven’t saved enough for retirement. To help make sure you’re staying on track, follow these tips for saving for retirement:
- Start Early: The earlier you save, the longer your investments have time to grow.
- Take Advantage of Company Matches: Many employers will match contributions to 401(k)s and similar savings plans up to a certain amount, such as 3%. Contribute at least as much as your company will match so as to not leave any money on the table.
- Open an Individual Retirement Account (IRA): If you don’t have access to a workplace retirement savings plan, you can save on your own via an IRA. Even if your employer does offer a 401(k), consider supplementing your savings with an IRA or Roth IRA, which has a different tax treatment.
- Set up automatic contributions: Whether you have a 401(k), 403(b), solo 401(k), or an IRA, if you automatically transfer funds, you’ll ensure your nest egg is constantly growing.
The Bottom Line
There is no one-size-fits-all rule for retirement savings, but aiming to have between 6 and 11 times your annual salary by the time you’re age 60 can help you prepare. Start early, take advantage of any employer matches, consider an IRA, and save automatically to stay on track. And if you’re off track, stay positive. Any amount of savings is a good start.
