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Upon reaching the age of 60, your 401(k) balance transcends being merely a figure to monitor; it transforms into a vital financial bedrock for your retirement years.
A significant number of people completely leave their jobs by age 60, rendering the assets in their 401(k) accounts increasingly essential. You may be surprised to discover that individuals in this demographic save upwards of $500,000 for their retirement.
Reaching 60 is also an excellent chance to enhance your 401(k) balance. You still have the opportunity to raise your contributions or augment your savings.
Important Highlights
- By the year 2025, you can contribute as much as $23,500 to your 401(k) plan.
- If you are between the ages of 60 and 63, you can 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 Empower, the typical 401(k) balance for those at the age of 60 is $573,624, with a median balance of $210,724.
401(k) balances differ across various age categories.
As anticipated, 401(k) balances diminish for individuals in their 70s and 80s. The average 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 you are in your 60s and notice that your 401(k) balance is not as high as anticipated, think about making additional contributions.
According to the IRS, the contribution cap for 401(k)s in 2025 is $23,500. Individuals aged 50 and above can contribute an extra $7,500. For those aged 60, 61, 62, and 63, the additional contribution limit is even greater at $11,250.
Wondering how much you ought to save for retirement by the time you reach 60? According to T
Rowe Price indicates that by the time you turn 60, your retirement savings target should be between six to eleven times your earnings. In line with Fidelity’s advice, you should strive for retirement savings that equal eight times your salary by the age of 60. Both of these recommendations serve as important guidelines for saving.
Conclusion
Although saving six to eleven times your earnings by age 60 may appear to be an overwhelming challenge, it is a goal that is worthwhile to pursue. Regardless of the amount you manage to save for retirement by the time you reach 60, it will equip you for a future beyond your career, which will arrive more quickly than you anticipate. Toncoin (TON) Value Forecast for March 26th
Thus, make every effort to contribute to your 401(k) plan, optimize your contributions, and utilize catch-up contributions; every dollar invested will bring your retirement aspirations closer to fruition.
