Workers aged 60-64 hold a median 401(k) balance of $89,400, generating $298 monthly under the 4% withdrawal rule.
The median 401(k) balance for workers aged 60 to 64 stands at $89,400, producing just $298 per month under the 4% safe withdrawal rule. Combined with average Social Security benefits of $2,071 monthly, retirees face an annual income of $28,400, far below the $78,535 average household spending.
Vanguard data reveals a stark contrast between median and average balances, with the average 401(k) at $284,300 for the same age group. The gap highlights how a small number of high-balance accounts skew averages, masking the reality for most savers. The median balance remains a more accurate measure of typical retirement preparedness.
Workers can boost retirement income by delaying Social Security benefits, which increase by 77% if claimed at 70 instead of 62. Additionally, SECURE 2.0 allows catch-up contributions of $11,250 for those aged 60 to 63.