Americans now need $1.46 million to retire comfortably, up 15% from last year, while average 60-year-olds hold $246,500.
The retirement savings target for Americans has risen to $1.46 million this year, a 15% increase from 2023, widening the gap for those nearing retirement. The average 60-64-year-old holds just $246,500 in their 401(k), leaving a shortfall of over $1.2 million.
Household spending reached $78,535 in 2024, while the personal savings rate dropped to 2.8%, pressuring retirement goals. SECURE 2.0 allows workers aged 60-63 to contribute up to $35,750 annually to 401(k) plans, and delaying Social Security benefits to age 70 can boost payouts by 8% per year.
Averages mask significant disparities, with Vanguard reporting a median 401(k) balance of $38,176 for the same age group, far below the mean of $148,153. Including IRAs, the average Baby Boomer holds $257,002 in retirement accounts, still well below the new target.