Reaching the milestone of 60 signifies that your 401(k) balance is more than merely a number; it serves as an essential financial base for your retirement.
Numerous people at 60 may completely leave the job market, which implies they might need to access their 401(k) assets earlier than anticipated. You might be surprised to discover that individuals aged 60 have accumulated over $500,000 for their retirement.
Turning 60 is also a prime moment to enhance your 401(k) balance. There remains a chance to raise your contributions or set aside additional savings.
Essential Points
- By 2025, you are allowed to contribute as much as $23,500 to your 401(k) account.
- If you fall within the age range of 60 to 63 years, you can make an extra contribution of $11,250.
- The typical 401(k) balance for individuals aged 60 is $573,624.
Remarkable Average 401(k) Balances for Those at 60
As per Empower, the average 401(k) balance for those who are 60 years old is $573,624, with a median balance of $210,724.
There are notable variations in 401(k) balances among different age categories.
As anticipated, the 401(k) balances for individuals in their 70s and 80s generally decline. The average 401(k) balance for those aged 70 is $431,962, with a median of $106,654. For individuals aged 80, the average balance is $393,826, with a median of $86,301.
If your 401(k) balance at 60 is less than you expected, think about making additional contributions. Fueled by Inflation Concerns, Bitcoin Skyrockets to $85,000
The IRS states that the contribution cap for 401(k) plans in 2025 is $23,500. Individuals aged 50 and above can add an extra $7,500. For those aged 60, 61, 62, and 63, the additional contribution limit is $11,250.
Curious about how much you should save by the age of 60 for a comfortable retirement? According to T.
Roei Price indicates that when you hit 60, your objective for retirement savings should range from six to eleven times your yearly earnings. As per Fidelity’s recommendations, you should strive for retirement savings that equal eight times your salary by the age of 60. Both of these serve as reliable benchmarks for saving.
Conclusion
Reaching the target of saving six to eleven times your income by the age of 60 may appear overwhelming, yet it is a valuable endeavor. Regardless of how much you manage to set aside for retirement by that age, it will assist you in preserving your lifestyle during your non-working years, which are swiftly approaching.
Hence, aim to increase your contributions to your 401(k) plan, optimize your contributions, and utilize catch-up provisions; each dollar invested will bring you nearer to achieving your retirement aspirations.
