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

Turning 60 can make retirement feel very real, and very close. With just a few working years left for many savers, your 401(k) balance takes on new importance as the foundation of your future income. It’s natural to wonder whether you’ve saved enough or if you need to accelerate your efforts. Understanding how your current balance stacks up, and what you can still do to strengthen it, can help you approach retirement with greater clarity and confidence.

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

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

By age 60, many financial professionals suggest having roughly eight to 10 times your annual salary saved for retirement by age 65 ¹ . For example, if you earn $120,000 per year, that could mean a target range of $960,000 to $1.2 million. These benchmarks are broad guidelines, but they provide a useful starting point for evaluating whether you’re on track.

However, actual savings often fall short. Vanguard studied the average balance of defined contribution plans, including 401(k)s, 403(b)s and 457 plans. For those aged 55 to 64, the average balance is about $244,750, while the median balance is closer to $87,571 ² . 

Your ideal retirement date plays a major role in determining how much you should have saved. If you plan to retire at 62, you’ll need your portfolio to start generating income sooner and potentially last longer. If you expect to work until 67 or beyond, you may have more time to save and fewer years to fund in retirement.

Your 401(k) is only one piece of the retirement puzzle. Social Security, pensions, rental income or taxable investment accounts can reduce the pressure on your 401(k) balance. Estimating how these income streams will work together helps clarify whether your current savings are sufficient.

Retirement Planning at 60: What Considerations Are You Making?

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. 

If you are behind on savings, your options for catch-up contributions are more limited but not gone. You can still contribute to retirement accounts if you are working, and your investment returns may continue to play a meaningful role in your long-term income strategy.

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. 

Example Scenario

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.

401(k) Contribution Limits at Age 60

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

• 401(k) contribution limit for 2026: $24,500
• Catch-up contribution (age 50 and older): $8,000
• Super catch-up contribution (age 60-63): $11,250

That gives you a total of $35,750 in elective deferrals. High earners should also note that starting in 2026, catch-up contributions may need to be made to a Roth 401(k), depending on income thresholds.

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.

What If You’re Behind at Age 60?

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.

• Consider delaying retirement by a few years to continue saving and reduce the number of years you will draw income.
• Consider delaying Social Security benefits to age 70 to receive the maximum monthly payment.
• Reevaluate your potential withdrawal strategy to minimize taxes and stretch savings.
• Downsize housing or reduce expenses to lower your cost of living.
• Optimize asset allocation to preserve growth potential while managing risk.

Even at 60, you may live another 30 to 35 years. That makes continued growth, inflation protection and strategic withdrawal planning all essential.

Bottom Line

By age 60, your 401(k) should be approaching the level needed to support retirement within the next several years. While common benchmarks suggest having eight to 10 times your salary saved, the right number ultimately depends on your retirement age, lifestyle goals and other income sources. This is a critical time to fine-tune contributions, adjust your investment mix and clarify your income plan.

Tips for Retirement Planning

• 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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