Here's How Much You Should Have Invested for Retirement at Age 60

Retirement is becoming incredibly expensive, especially as costs like housing and healthcare continue to soar. The average 65-year-old couple can expect to spend around $315,000 on out-of-pocket healthcare costs alone in retirement, according to a 2023 report from Fidelity Investments.

Also, with Social Security struggling with a cash shortage , your benefits may be even less reliable in the future. Now more than ever, then, it's crucial to have a robust retirement fund.

But just how much do you need to save for retirement? Everyone's goals will differ, but it can be helpful to see what the average retirement account balance looks like among people your age. Here's how to determine what you should have saved, as well as a few tips for boosting your savings.

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How much should you have saved by age 60?

Your personal retirement goal is unique to your situation, so there's no one-size-fits-all answer as to how much you should have saved . But by age 60, you should be getting close to your goal as you near retirement age.

To determine your retirement goal, you'll first need to consider your expenses. As a general rule of thumb, aim to have enough saved to cover around 80% of your pre-retirement expenses per year. For example, if you currently spend $70,000 per year, you may need around $56,000 per year in income once you retire.

You may need more or less than this figure, depending on how your expenses change -- especially if you move to a new city, downsize your home, or face expensive health issues. Also, don't forget about other sources of income outside of savings, such as Social Security benefits or a pension. By calculating how much you'll be receiving from outside income sources, it's easier to determine what you'll need to pull from your personal savings.

When you have an idea of how much you'll be spending each year, you can run your information through a retirement calculator to determine your savings goal.

What's the average 401(k) balance at your age?

While it's not always useful to compare your progress, it can sometimes help to see where the average worker stands on savings. According to Vanguard's 2024 How America Saves report, the average 401(k) balance among Vanguard participants aged 55 to 64 is $244,750. The median balance -- which may be more accurate, as it's less skewed by outliers -- is just $87,571 for this age group.

If your retirement account balance is above average, give yourself a pat on the back. But that doesn't necessarily mean you're on track for a comfortable retirement. Regardless of where you stand, compared to the average worker, it's still wise to calculate your own personal retirement goal to ensure you're saving enough.

Simple strategies to increase your savings

By age 60, you may not have decades left to save for retirement. While that makes it more challenging, it's not impossible to save more.

If you have access to a 401(k) that offers matching contributions from your employer, that's often the best way to supercharge your savings. The employer match can instantly double your contributions with next to no effort on your part, helping you save thousands more while barely lifting a finger.

Even small contributions can go a long way. If you were to invest, say, $100 more per month while earning a modest 8% average annual return on your investments, that could add up to more than $17,000 after 10 years. If you're earning a company match on top of that, you could accumulate even more.

Your retirement goal will depend on your unique situation. By calculating that goal, it will be easier to determine whether you're on track. With small steps to increase your savings, you'll be that much closer to building a robust retirement fund.

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