How Much Should I Have in My 401(k) at Age 60?

By age 60, retirement is no longer a distant goal, it is just around the corner. For many, it begs the question: how much should I have in my 401(k) at age 60? Many financial experts recommend having saved eight times your annual salary by this point to help support a comfortable retirement. At this age, your focus may shift from aggressive saving to optimizing withdrawal strategies. This includes minimizing taxes and protecting your portfolio against market risk and longevity. Whether you are planning to retire soon or want to delay retirement, it is helpful to evaluate your progress against benchmarks and run realistic income projections to better meet your future needs. 

A financial advisor can help tailor a retirement income plan to meet your retirement planning needs.

According to Fidelity’s retirement savings guidelines, you should have approximately eight times your current salary saved by age 65¹. If your annual income is $100,000, that equates to $800,000.

These figures highlight how many retirees enter their post-working years underfunded. It makes smart planning and strategic withdrawals even more important for your retirement.

At age 60, you are likely making final decisions about your retirement. This can include the best age to retire and how to fund your retirement. You may be making arrangements for upcoming eligibility for Medicare, as well as when you will claim Social Security. While you can claim as early as 62, your full retirement age is likely 67. You can also choose to delay claiming Social Security up to age 70. Delaying Social Security increases your benefit by about 8% per year. 

Many people at 60 are preparing to shift from accumulation to decumulation, namely the process of withdrawing funds in a tax-efficient way while ensuring their portfolio lasts 20 to 30 years. 

Let’s say you are 60, earning $100,000 per year and have saved $650,000 in your 401(k). That puts you just under the eight-times benchmark. If you are planning to retire soon, that balance will need to potentially stretch for 25 years or more.

However, if you work until 67 and contribute $31,000 annually with an average return of 6%, your account could grow to over $1.2 million by retirement. That extra growth can make a significant difference in your retirement security.

If you are still working at 60, you can continue making retirement contributions, according to the following contribution limits.

• 401(k) contribution limit for 2025: $23,500
• Catch-up contribution (age 50 and older): $7,500
• Super catch-up contribution (age 60-63): $11,250

That gives you a total of $34,750 in elective deferrals. 

For IRAs, the contribution limit for those 50 and older is $8,000, including a $1,000 catch-up. These accounts can be used alongside your 401(k) for additional retirement savings or tax diversification.

Falling short of the 8-times target does not mean retirement is off the table. It just means you may need to adjust your strategy. These options may help.

By age 60, having eight times your annual income saved in retirement accounts is a helpful benchmark. However, it is not a strict requirement. What matters most is how you turn your savings into income and how well you have planned for taxes, longevity and spending needs. Whether you are fully retiring, easing into part-time work or delaying a few years, the right plan can help you make your golden years your most confident yet.

• A financial advisor can help you better understand the amount of money you need to save so that you can hit your long-term retirement goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Not sure if you’re saving for retirement? Get an estimate on what you may need by using a retirement calculator.

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