Is your retirement fund on track? Find out the average 401(k) balance for people in their 60s

When you reach your 60s and retirement is just around the corner, you may find yourself thinking a lot about your 401(k). How does what you have saved compare to other people your age? How much do you really need to retire?

Although it may be tempting to compare your savings with your peers, the amount you need to save will depend on when you plan to retire and what you want that retirement to look like.

401(k) Saving in Your 60s: Average and Average Balances Explained

According to Empower, the average 401(k) balance for someone in their 60s was $568,040 as of June 2025. This balance was slightly lower than the average 401(k) balance of $607,055 for those in their 50s, perhaps because some people in their 60s had already retired and started receiving distributions from their 401(k).

Keep in mind that averages can easily skew: Just a few 401(k) accounts with very high (or very low) balances can significantly affect the average. That’s why you may want to pay more attention to the average, or middle-of-the-road number. The average amount saved by people in their 60s as of June 2025 was $188,792.

How much do you need to retire?

If you’re looking at these numbers and worried about how your retirement savings compare, you’re not alone. According to a survey by Western & Southern Financial Group, 47% of baby boomers (who make up the majority of those in their 60s, with the oldest members of Generation X turning 60 in 2025) are not confident they can retire comfortably. Another 11% of boomers are unsure whether they will be able to retire comfortably.

The same study clearly laid out why: Baby boomers believe they need to save an average of $760,000 to retire comfortably. Generation X expected to need more: $1.18 million. The average and median 401(k) savings for those in their 60s is well below these amounts.

However, the amount you need to retire depends on a variety of factors, especially your lifestyle and health. Instead of just looking at averages, it’s helpful to look at your personal situation to determine how much you need to save.

One retirement savings rule suggests saving eight times your annual income before retiring at age 60. So, if you make $75,000 a year, you’ll need to save $600,000 by age 60.

Another calculation is based on the 4% rule, which suggests that retirees withdraw 4% from their 401(k) in the first year of retirement, and then adjust that for inflation each subsequent year. Following this rule means you need to save 25 times your annual expenses. So, if you expect to spend $36,000 a year in retirement, you’ll need to save $900,000.

Keep in mind that most retirees don’t live on their 401(k) alone. Most retirees in the United States receive Social Security benefits. You may also have investments, an individual retirement account (IRA), or even a side hustle that you plan to continue in retirement to supplement your 401(k) savings.

The Western & Southern survey found that 90% of Baby Boomers and 71% of Generation

5 Ways to Boost Your Retirement Savings

If you’re in your 60s and your 401(k) isn’t where you want it to be, here’s how to boost your 401(k) savings in the last few years before retirement.

1. Make catch-up contributions

In 2025, the annual limit for 401(k) contributions for many people will be $23,500. If you’re in your early 60s, you can get rid of even more. If you’re 60, 61, 62 or 63, you can make additional catch-up contributions of $11,250, for a total of $34,750. If you are 64 or older, your catch-up contribution level is $7,500 for a total of $31,000 in 2025.

2. Use workplace benefits

Alexa Kane, CFP, CDFA, a financial planner at Pearl Planning, recommends that anyone approaching retirement get as many workplace retirement benefits as possible.

“If your employer offers matching super contributions, contribute enough to get the full contributions,” she said, even if you haven’t reached the employer’s maximum contributions before.

Ken also suggested automating savings to take the guesswork out of retirement contributions.

“Many retirement plans can be set up to automatically increase contributions by a percentage annually,” she said.

3. Reallocate assets

In general, investors tend to hold more stocks in a 401(k) when they are younger, and take on more risk in exchange for more growth. It’s common to gradually shift to a more conservative balance of stocks, bonds, and other assets as you approach retirement. If your 401(k) is invested in a target-date fund, this conversion occurs automatically.

If you’re in your 60s but feel like you’re not on the right track with your savings, don’t immediately shift everything into conservative assets. Prioritizing growth for a few more years could help your 401(k) grow significantly this decade. As you approach retirement, gradually shifting toward bonds and away from stocks will help protect your assets.

4. Consider downsizing now

If you’re part of the 51% of people who plan to downsize in retirement, consider downsizing your living situation now instead. Downsizing before retirement can significantly reduce your living expenses by reducing costs such as:

• Real estate taxes
• Home maintenance and repair
• Homeowners insurance
• Utility bills

If you’re strategic about where you move, you can also prioritize things like access to public transportation, which may reduce your living expenses by allowing you to drive fewer cars or own fewer cars.

Reducing your living expenses can allow you to put more into tax-advantaged retirement accounts now, giving the money time to grow. This can be especially helpful if you’re trying to max out your contributions in your early 60s, when you can put more into a 401(k) before tax.

5. Work with a counselor

Working with a financial advisor as you approach retirement can help you figure out not only how much money to save, but also what type of retirement you want and how you can achieve it.

“There are many pictures of retirement,” Keane said. “With any retirement plan, we say, ‘You can do anything, but not everything.’ There are pros and cons to every decision.”

Working with an advisor can help you think about your options and the trade-offs you may have to make for certain options. For example, many retirees like the idea of ​​living abroad for a lower cost of living, including cheap health care. But the choice is not just between a more expensive life in one country and a less expensive life in another.

“A large international move requires careful planning and an understanding of the laws and regulations associated with it,” Keane said. “You still have to file US taxes while living abroad. You also need to understand the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC).”

A financial advisor can guide you through all of these considerations and help you decide what type of retirement makes sense based on your resources and priorities.

Bottom line

It can be tempting to compare your retirement savings with your peers. While following certain criteria can help you judge whether your 401(k) is on the right track, the appropriate amount to save for retirement will depend on a number of factors unique to your lifestyle and retirement plans.

Your early 60s, before retirement, is a great time to reach out to a financial advisor and evaluate your retirement planning and savings. If you’re not on track, an advisor will be able to suggest different strategies, such as taking advantage of catch-up contributions, reducing expenses through downsizing, or rethinking the asset allocation in your 401(k).