Retirement Planning at Age 60: How Much Should You Have Saved?

by | Sep 17, 2023 | Fidelity IRA | 49 comments




What’s the average retirement savings by age 60 and what does it mean for you?

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Average Retirement Savings By Age 60: How Much Should You Have? retirement planning at 60

Retirement is a life stage that many individuals eagerly look forward to. It symbolizes a time of relaxation, pursuing personal interests, and enjoying the fruits of labor. However, to truly make the most of your retirement years, it is essential to have sufficient financial resources. One crucial indicator of financial preparedness for retirement is the average retirement savings by age 60. In this article, we will explore how much you should have saved by this age and provide some essential tips for retirement planning at 60.

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First and foremost, it is crucial to understand that everyone’s retirement savings goal will differ based on individual circumstances, lifestyle, and retirement aspirations. However, having a rough benchmark can provide a general framework for planning and assessing your financial readiness.

According to a report by Fidelity Investments, the recommended retirement savings at age 60 is six times your annual salary. However, it is important to note that this figure may not be suitable for everyone. Assessing your personal situation is crucial when determining your retirement savings goal.

To evaluate your financial preparedness, consider factors like your anticipated retirement age, desired lifestyle, healthcare costs, and other expenses unique to your situation. Factor in any additional sources of income such as Social Security benefits, pension plans, or rental income. By doing so, you can estimate the monthly income required to sustain your desired retirement lifestyle.

For those who find themselves lagging behind the recommended benchmark, it is never too late to start planning and taking action. Here are some essential steps for retirement planning at age 60:

1. Assess your current financial situation: Determine your net worth, including assets, debts, and investments. Evaluate your existing retirement accounts, such as 401(k)s or IRAs, and examine their growth potential.

2. Create a realistic budget: Understand your monthly expenses and identify areas where you can cut back. Redirect those savings towards your retirement funds.

3. Maximize contributions: Take full advantage of catch-up contributions allowed for individuals aged 50 and over. For 2021, the catch-up contribution limit for 401(k) plans is $6,500, while for IRAs, it is $1,000.

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4. Diversify your investments: Consider diversifying your investment portfolio to balance risk and reward. Consult with a financial advisor to ensure your investments align with your retirement goals.

5. Evaluate your healthcare coverage: Review your future healthcare needs and understand how Medicare coverage works. Consider obtaining supplemental coverage to provide additional protection.

6. Reduce debt: Prioritize paying off high-interest debts such as credit cards or loans. Reducing your debt burden will free up more funds for retirement savings.

7. Explore part-time work options: If necessary, consider part-time or freelance work to supplement your retirement income. This can help bridge any financial gaps and provide a sense of purpose during retirement.

Remember, retirement planning is an ongoing process that requires periodic reviews and adjustments. Regularly reassess your financial goals and make necessary tweaks to your plan as circumstances change.

Lastly, seek professional guidance from a financial advisor who specializes in retirement planning. They can help you navigate the complexities of retirement savings and create a comprehensive plan tailored to your needs.

In conclusion, the average retirement savings by age 60 can serve as a general benchmark for financial preparedness. However, it is important to evaluate your personal situation and consider factors unique to your circumstances. By taking proactive steps and seeking professional advice, you can make the most of your retirement years with confidence and financial security.

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49 Comments

  1. Dan K

    Need to make top 2% in household net worth. That’s 3 million and more.

  2. James Abdelkarim

    Not making up to a million before retirement is unfulfilled retirement.!! It’s such a blessing that my wife and I aren’t just married, but we’re also each other’s best strategic partner in business. I’m great at what she lacks, she’s great at what I lack and we have a Fin. Adviser to work with. Praise God!! And thank you for this awesome content!!!.!!!

  3. Deni Shamlin

    How do you receive social security benefits when you're 60?

  4. Tahiri Said

    I am retiring next yr at 55 with 3 houses paid off worth 4.5 million. One is my place of residence the other 2 properties will give me $80,000per/yr rent. I will have an income stream of $20,000 per yr through my super which gives me total $100,000 a yr to live comfortably. I have no debts … Stay Motivated!!

  5. Donald Gaff

    Big ups to everyone working effortlessly trying to earn a living while building wealth. I’m 40 and my wife 34 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income.

  6. Suzanne Emerson

    Who can live on $4000/month before taxes? No one I know.

  7. christopher hennessey

    For those who have less than the $ 320,000 that you had posted ,do these individuals have a continuing income stream such as a defined benefit pension?

  8. John Sanchez

    I have a friend, Who is 54. He only has $500, Currently, Saved, ln the Bank, and He wants to retire, @ 62. Any advice, For my friend?

  9. Bart Asher

    You need more than those three items! For example what is your current debt.

  10. 莫紫月

    How can anyone survive on 200k retirement saving ? Unless there is other income.

  11. Ben’s Wig

    Even 600k at 60 is very low

  12. Th3 B4nker

    Mike Tyson got you too huh?

  13. NipItInTheBud100

    I’d love to see a video of what you should have saved if you want to retire at 50, 55, 60, 62, 65, 67, and 70! Or even some of those! I understand exact numbers can’t be given but rules of thumb types of numbers would be greatly appreciated!

  14. Ed M

    What if someone has multiple 401k from different employees at different brokerages

  15. Jay Burdman

    You forgot another very important number – at what age does this person want to retire? Maybe it's tomorrow, maybe they want to work another ten years. It makes a huge difference.

  16. Marshall Hosel

    Thanks, short and sweet.

  17. Victor Agoo

    Simple, direct to the point, very clear. Thank you,

  18. grudgerun

    This is good and clear, however a 60yo generally does not yet have access to Social Security payouts, not until age 62.

  19. Christopher Maloy

    Hey Streamline Financial – I subscribe to your software, and I've really enjoyed it. Many planners are saying we should get out of bonds and move to a better / safe alternative. What are your thoughts on this?

  20. Frank0020

    Hi, do I work the numbers pre-taxes?

  21. TheOtherMike

    I spent money early on paying off my house so I only have 480K.

  22. Alan Sach

    Doesn't how much you "should have" depend on how much you make, your lifestyle, whether you also have a pension, if you are single or married and where you live?

  23. David Miller

    My ideal portfolio would be one that meets my financial needs for the rest of my life, I’m currently investing for retirement.

  24. Making Retirement Possible

    I'm confused.. what does the 500 represent in the match when dividing?

  25. Deborah Parker

    In your example, is the $4000/mo before or after federal and state income tax?

  26. Patrick Page

    Work on your focusing and camera work. We don't need to see the top of your head when you are looking down. You were out of focus for significant portions. Thanks for putting this out there though. You just need to work on your production values.

  27. Sunbelt Living

    It's hard to know if they have pensions on top of 401k

  28. sbtrnfla

    People need to save for their own funerals…..that should be the only guarantee

  29. ED GTR

    Im 55 I have $170,000 so far

  30. Ralph Nabozny

    there is no pension

  31. David Siemer

    Wish I had the $600K but at least I’ll have 4 pensions totaling around $4800 a month

  32. d. levy

    So what if you have$20.00 and your 56yrs old

  33. dalesworld

    Sadly, I've never seen school taxes, insurance, food prices or energy costs stay the same.

  34. dbruce9035

    Thanks for not making a 30 minute video. Short, sweet and to the point.

  35. Mellie Vern

    I'm in trouble.

  36. Dave Lackey

    Where do I find an honest financial planer

  37. Dave Lackey

    I receive a pension about $5800 a month

  38. Dave Lackey

    I have a federal pension the Social Security I get essentially is all offset by Medicare payment, we live in the Midwest about three hours from Chicago and have saved $515,000. I will soon have to start taking my mandatory RMD’s any suggestions or comments

  39. jc nopenny

    Can you collect SSN at 60?

  40. Barb Chand

    Wonderful vlog! Thank you sir.

  41. Cajun Accent

    Great job on the video. Thank you

  42. Tepper Timmy

    Early retirement is the dream. I refuse to accept that I have to be at the end of my life to enjoy time freedom. Let's hustle to financial independence! Thanks for sharing!

  43. Andreas Hallow

    Early retirement is the dream. I refuse to accept that I have to be at the end of my life to enjoy time freedom. Let's hustle to financial independence! Thanks for sharing!

  44. Michele Simko

    Who get $2500 social security

  45. Gilbert Fleming

    Thank you for the information on the assets of a 60 year old. Another question… What is the average income of a 60-year-old? Lotta folks have large pensions but no savings.

  46. Matthew J

    Much lower than needed. One thing to think about though is people have multiple retirement accounts that cannot be factored into these numbers.

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