By age 60, Fidelity says you should try to have eight times your salary socked away in a retirement plan. If you're 60 years old with less than $100,000 in your IRA or 401(k), it means you may be approaching retirement age feeling less than confident about your prospects.
Now one thing you should be aware of is that the average 60-something today only has a retirement savings balance of $112,500, per Northwestern Mutual. So if you're 60 years old with close to $100,000 in your brokerage account, you're not that far behind.
But either way, you may be stressed about the idea of wrapping up your career and having to live on a minimal nest egg. If so, here are some steps to consider.
1. Ramp up your savings efforts from this point forward
Maybe life got in the way of your retirement savings efforts at various stages. It could be that in your 30s, you were struggling to keep up with child care expenses, and in your 40s, the bulk of your money went toward your mortgage loan.
But if things have calmed down to an extent and you're not being pulled in as many directions, financially speaking, then you do have an opportunity to contribute more toward retirement between now and when your career wraps up. So do your best to pump some extra money into your IRA or 401(k).
If you manage to save $500 a month over the next seven years and your investments in your IRA or 401(k) give you an average yearly return of 5% (which is fairly conservative, as it's half of the stock market's average), you'll end up with almost $49,000 on top of your current balance.
2. Consider delaying your retirement
Many people retire in their mid or late 60s. But there's no rule saying you have to do that. And if you enjoy what you do professionally and your job isn't particularly stressful, then there's no reason not to stick with it a few extra years.
Doing so achieves two important purposes. First, it allows you to add to your savings even more. Secondly, it gives you an opportunity to leave your nest egg alone a few more years, allowing all of that money to continue growing.
3. Plan to work part-time during retirement
Many people assume that once they resign from their careers, they won't work again. But if you don't have health issues preventing you from working, then why not plan to hold down a job as a retiree? It could help you avoid a financial crunch if you're not coming in with all that much savings.
Remember, too, that the work you do in retirement could look very different than the work you're doing now. Instead of taking an office job, you could work at a bakery in town. Or, if you're crafty, you could sell homemade jewelry or artwork for income.
There are many options you can consider. And you may find that having a job is a great way to fill up your days as a retiree without having to go out and spend money.
In an ideal world, you'd have more than $100,000 in retirement savings by age 60. But if that's not where you are, don't panic. You're definitely not doomed to a miserable existence as a retiree. And if you take steps to ramp up your savings, extend your career, or continue to work in some capacity, you may find that money isn't nearly as tight in retirement as you expect it to be.
Alert: our top-rated cash back card now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.
FAQs
Some good investments for retirement are defined contribution plans, such as 401(k)s and 403(b)s, traditional IRAs and Roth IRAs, cash-value life insurance plans, and guaranteed income annuities.
How much should a 60 year old have saved for retirement? ›
Going with the standard rule of thumb, then, by age 60 a median household should have between $412,500 and $825,000 in retirement savings. This is the amount that most advisors would recommend to maintain a standard of living in retirement at the median level of income.
What to do if you're 60 with no retirement savings? ›
If you retire with no money, you'll have to consider ways to create income to pay your living expenses. That might include applying for Social Security retirement benefits, getting a reverse mortgage if you own a home, or starting a side hustle or part-time job to generate a steady paycheck.
Can I retire at 60 with 100k in savings? ›
“With a nest egg of $100,000, that would only cover two years of expenses without considering any additional income sources like Social Security,” Ross explained. “So, while it's not impossible, it would likely require a very frugal lifestyle and additional income streams to be comfortable.”
What is a good 401k balance at age 60? ›
And by age 60, you should have six to 11 times your salary saved in order to be considered on track for retirement.
What is the minimum amount to retire at 60? ›
Fidelity's guideline: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. Factors that will impact your personal savings goal include the age you plan to retire and the lifestyle you hope to have in retirement. If you're behind, don't fret. There are ways to catch up.
What is a good monthly retirement income? ›
Many retirees fall far short of that amount, but their savings may be supplemented with other forms of income. According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.
What is the average Social Security check? ›
Social Security offers a monthly benefit check to many kinds of recipients. As of April 2024, the average check is $1,776.73, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.
What happens if you have no money for retirement? ›
You may have to rely on Social Security
Many retirees with little to no savings rely solely on Social Security as their main source of income. You can claim Social Security benefits as early as age 62, but your benefit amount will depend on when you start filing for the benefit.
How many people retire with no savings? ›
20% of adults ages 50+ have no retirement savings, 61% worry they won't have enough at retirement, as per new AARP survey. Plus six tips to start saving now.
Despite popular belief, it's never too late to start planning for your golden years. Of course, experts recommend beginning as early as possible, but even if you're a late bloomer to retirement savings, you can still make a difference for your financial future.
How much do you need to retire if you have no debt? ›
Financial planners often recommend replacing about 80% of your pre-retirement income to sustain the same lifestyle after you retire. This means that, if you earn $100,000 per year, you'd aim for at least $80,000 of income (in today's dollars) in retirement.
How many Americans have $100,000 in savings? ›
Most American households have at least $1,000 in checking or savings accounts. But only about 12% have more than $100,000 in checking and savings.
What is the 4 rule for retirement? ›
It's intended to make sure you have a safe retirement withdrawal rate and don't outlive your savings in your final years. By pulling out only 4% of your total funds and allowing the rest of your investments to continue to grow, you can budget a safe withdrawal rate for 30 years or more.
How much does the average American 60 year old hold in retirement savings? ›
Here's how much the average American has in retirement savings by age
| Age Range | Average Retirement Savings |
|---|
| 35-44 | $141,520 |
| 45-54 | $313,220 |
| 55-64 | $537,560 |
| 65-74 | $609,230 |
2 more rowsMay 5, 2024
Is it too late to save for retirement at 60 or 55? The answer is no, especially if you take the 401(k) savings plan approach. Under the new law, there are no age restrictions for 401k contributions, even among the 70+ years old folks.
What is the best 401k mix for a 60 year old? ›
At age 60–69, consider a moderate portfolio (60% stock, 35% bonds, 5% cash/cash investments); 70–79, moderately conservative (40% stock, 50% bonds, 10% cash/cash investments); 80 and above, conservative (20% stock, 50% bonds, 30% cash/cash investments).
What is the $1000 a month rule for retirement? ›
One example is the $1,000/month rule. Created by Wes Moss, a Certified Financial Planner, this strategy helps individuals visualize how much savings they should have in retirement. According to Moss, you should plan to have $240,000 saved for every $1,000 of disposable income in retirement.
Is $1000000 enough to retire at 60? ›
So, can you retire at 60 with $1 million, and what would that look like? It's certainly possible to retire comfortably in this scenario. But it's wise to review your spending needs, taxes, health care, and other factors as you prepare for your retirement years.
