The typical 60-year-old holds $246,500 in their 401(k), well below Fidelity’s recommended 8x salary target for retirement savings.
The average 401(k) balance for Americans aged 60 to 64 stands at $246,500, according to recent data, significantly below Fidelity’s guideline of saving eight times one’s salary by age 60. For a household earning $90,000 annually, this benchmark translates to roughly $720,000 in retirement savings.
Workers in this age group face a 2026 contribution limit of $35,750, the highest available under current law. Balances rise modestly to $251,400 for those aged 65 to 69, highlighting a persistent gap between actual savings and retirement targets.
Tax-efficient strategies, such as delaying Social Security benefits or leveraging Roth conversions, become critical during this period. Each decision can compound over decades, affecting withdrawals, tax bills, and overall financial security in retirement.