What's Your 401(k) Really Worth in Your 60s? 2025 Update

Entering your 60s means one thing: retirement planning just got real. If you’re wondering how your 401(k) stacks up against peers your age and whether you’re on track, you’re not alone. Here’s what the latest data reveals about retirement readiness in your 60s.

The Real Numbers: 401(k) Average by Age Group

According to Empower data from June 2025, people in their 60s are sitting on an average 401(k) balance of $568,040. Sounds impressive until you dig deeper. That figure actually dipped compared to those in their 50s ($607,055), primarily because some early retirees have already started tapping into their accounts.

Here’s the catch: averages don’t tell the full story. The median balance—which better reflects what typical people actually have—stood at just $188,792. That’s a massive gap between average and median, meaning a handful of very wealthy accounts are skewing the numbers upward.

The Confidence Gap: How Much Is “Enough”?

A Western & Southern Financial Group survey exposed something troubling: 47% of Baby Boomers (most of today’s 60-somethings) don’t feel confident they can retire comfortably. Another 11% are simply uncertain.

So how much do people think they need? Baby Boomers estimate around $760,000 for a comfortable retirement, while Gen X expects to need $1.18 million. Both figures dwarf the actual 401(k) averages for people in their 60s, yet 90% of Baby Boomers still rely on Social Security as their primary income source.

The reality? Your retirement goal depends entirely on your lifestyle. One rule of thumb suggests accumulating eight times your annual salary by age 60. If you earn $75,000, aim for $600,000. Alternatively, the 4% rule means withdrawing 4% annually in retirement, so you’d need 25 times your expected yearly expenses saved.

Five Moves to Boost Your 401(k) Before Retirement

If you’re behind on your 401(k) average by age, these strategies can help you recover significant ground in your final working years.

1. Leverage Catch-Up Contributions

Ages 60-63 workers get a major advantage: they can contribute an extra $11,250 on top of the standard $23,500 limit, reaching $34,750 total in 2025. Those 64+ can add another $7,500 catch-up, pushing the ceiling to $31,000. This is your chance to supercharge savings.

2. Capture the Full Employer Match

Many workers leave money on the table by not maximizing their employer match. If your company matches contributions, contribute enough to get every dollar. Consider setting up automatic annual increases—most plans allow this, gradually ramping up your contributions without thinking about it.

3. Recalibrate Your Investment Approach

Younger workers typically load up on stocks for growth. As you approach 60, rebalancing toward a conservative mix of stocks, bonds, and other assets makes sense. But here’s the counterintuitive part: if you’re worried about being behind on your 401(k) average by age, don’t go too conservative too early. Staying growth-oriented for a few more years can meaningfully boost your balance before gradually shifting to bonds as retirement nears.

4. Consider Downsizing Before Retirement

About 51% of people plan to downsize in retirement, but timing matters. Move now instead of waiting, and you’ll immediately lower expenses through reduced property taxes, maintenance, insurance, and utilities. Choosing a location with public transit cuts costs even further. Every dollar saved on living expenses can be redirected into tax-advantaged accounts during your peak catch-up years.

5. Get Professional Guidance

A financial advisor can help you model different retirement scenarios and navigate complex decisions—like potentially retiring abroad for lower costs. Such moves require understanding Foreign Earned Income Exclusion rules, Foreign Tax Credits, and ongoing U.S. tax filing requirements. An advisor ensures you don’t overlook these details.

The Bottom Line

Your 401(k) doesn’t exist in a vacuum. Most retirees supplement with Social Security, IRAs, and other income sources. Rather than obsessing over the 401(k) average by age, focus on your personal number based on your lifestyle and goals. Your 60s offer a final sprint to boost savings through catch-up contributions and strategic moves—use it wisely.