Reaching the milestone of 60 signifies that your 401(k) balance represents more than just a figure; it establishes the economic base for your retirement journey.
Numerous people completely withdraw from the labor force by the age of 60, rendering the assets in their 401(k) accounts exceedingly important. You may find it astonishing that the typical retirement savings for those at 60 exceeds $500,000.
Turning 60 also presents an excellent opportunity to enhance your 401(k) balance. You still have the chance to elevate your contributions or compensate for any savings deficits at this point.
Essential Highlights
- By the year 2025, you are permitted to contribute as much as $23,500 to your 401(k) scheme.
- If you fall within the age bracket of 60 to 63, you are allowed to make an extra contribution of $11,250.
- The typical 401(k) balance for individuals aged 60 stands at $573,624.
Remarkable Average 401(k) Balances for Those Aged 60
As per information from Empower, the typical 401(k) balance for people aged 60 is $573,624, while the median balance is $210,724.
Balances in 401(k) accounts differ by age category.
As anticipated, the 401(k) balances for individuals in their 70s and 80s diminish. The average balance for those aged 70 is $431,962, with a median balance of $106,654. For individuals aged 80, the average balance is $393,826, and the median is $86,301.
If you are already 60 and your 401(k) balance falls short of the recommended level, think about making extra contributions.
According to the IRS, the contribution cap for 401(k) plans in 2025 is $23,500. For individuals aged 50 and above, the extra contribution limit is $7,500. For those aged 60, 61, 62, and 63, the additional contribution limit is $11,250. Toncoin (TON) Value Forecast for March 26th
Curious about how much you should save for retirement by the age of 60? Based on T.
As per Rowe Price, by the time you turn 60, your objective for retirement savings should be between six and eleven times your earnings. Fidelity recommends that you should strive to have retirement funds amounting to eight times your salary by the age of 60. Both of these serve as outstanding standards for saving.
Final Thoughts
Although the target of saving six to eleven times your earnings by 60 may appear overwhelming, it is a valuable aim to strive for. Regardless of how much you are able to gather for retirement by that point, it will assist you in preparing for the years when you are not working.
Thus, make every effort to contribute to your 401(k) plan, optimize your contributions, and utilize catch-up provisions; every dollar you invest will bring you nearer to realizing your retirement aspirations.
