You Might Be Ahead Of The Average 60-Year-Old If You Have This Number In Your 401(k)

Those looking at retiring in the next decade are likely taking an extra close look at their current retirement savings. Whether that includes personal investments, real estate, or retirement accounts like a 401(k) or Roth IRA, getting a clear picture of where you stand financially can be particularly important when determining just how much longer you need to stay in the workforce. For those looking for a point of comparison while doing these calculations –- you're in luck. According to Empower, the average 401(k) balance for those in their 60s, as of January 2026, was $576,755.

Or, for those still approaching their 60s, the average 401(k) balance was $629,000 among those in their 50s. Whether your particular account balance stacks up with these averages, or falls short, it could be worth considering ways to catch up with your retirement savings or even how to factor in specific things you should do right before you plan on retiring. While there is a wealth of information (pun intended) geared toward maximizing your overall retirement savings, perhaps the most important thing to realize is that your specific strategy can, and should, vary significantly depending on your current age. 20-somethings will have far different priorities than those looking to retire in the next year. Regardless, the easiest way to help yourself is to ensure you maximize your 401(k) contributions every year — which cap out at $24,500 in 2026 –- not to mention take advantage of any employer 401(k) contribution matching available to you.

If these account balance averages have you feeling a touch of despair, it's important to also look at the median 401(k) balance for people in their 60s –- as this can often provide a far more accurate look at what most people have saved. Per Empower, the median 401(k) balance for those in their 60s was decidedly lower than the average, at $187,249. Meanwhile, the median for those in their 50s was $246,554.

However, these medians are notably at odds with the amount of money that people believe they need to retire. For instance, according to Northwestern Mutual's annual Planning and Progress Study, the 'magic number' people believe they need in order to retire comfortably hit a whopping $1.46 million in 2026. This is significant for two reasons in particular, the first being that it represents an over 15% jump in the 'magic number' compared to 2025, and the second is that an astonishing 48% of those surveyed reported believing that it was somewhat or even very likely that they would outlive their retirement savings.

If you find your current 401(k) balance is not matching up with your goals, it can be important to reassess your current savings strategy. Depending on your age, it might not be possible to start saving early, or simply save more anymore. With that in mind, your strategy might need to shift gears towards things like maintaining a part-time job after retirement, relocating somewhere with a cheaper cost of living, or even delaying retiring a few extra years to take advantage of Social Security delayed retirement credits.