Age 65-74? Here’s the Average Retirement Savings for People Your Age.

How much do people start their retirement with these days? Obviously, everyone’s nest egg is different, since they put different amounts into these accounts as they grow them and invest their money differently. The averages, though, give us a rough idea of where most people are.

With that as the backdrop, here’s a rundown from a handful of sources about where most people between the ages of 65 and 74 stand.

Where the typical retiree stands at retirement

If you’re talking strictly about 401(k) account balances, mutual fund outfit and retirement plan administrator Fidelity offers detailed data on older participants in its plans. As of the end of March, folks between the ages of 65 and 69 had an average of $258,800 in their 401(k) accounts overseen by Fidelity, while its 70-plus clients had an average balance of $264,500. Similarly, the fund giant simply says that the average baby boomer’s 401(k) is currently worth $260,300.

These numbers roughly align with those from rival fund company and retirement plan administrator Vanguard. It reports that as of the end of last year, the typical 65-plus participant’s 401(k) account held $330,186.

This isn’t quite the whole story, of course, since plenty of people save for retirement beyond a 401(k). To this end, the Federal Reserve’s most recent survey of consumer finances, conducted in 2022, indicates that the average 65- to 74-year-old had total retirement savings of $609,230. This figure aligns with Fidelity’s note that the average baby boomer also has an IRA balance of $286,700, which is completely separate from their 401(k) account balances.

Image source: Getty Images.

All these numbers, however, still don’t paint a meaningfully accurate picture of what most people actually have saved up. These averages are skewed measurably higher by a small handful of very large account balances. Vanguard’s median 401(k) plan account balances for its 65-plus crowd are a much lower $103,202. That just means that half of the people in this age group have more, while half have less.

And the Federal Reserve’s report suggests something similar. While the average 2022 retirement savings for U.S. residents aged 65 to 74 is the aforementioned $609,230, the median figure is a much lower $200,000.

Make a specific plan starting from where you are

At first blush, any of these numbers could be encouraging or discouraging, depending on how you compare, or more specifically, how you feel like you compare. Some people will be fine with less than the smallest of these figures. Others will need more than the biggest.

The key is mostly just making a spending plan that makes sense for you and your situation. Balancing the consumption of your savings with the continued growth of what you’re not yet withdrawing is also critical.

So, no matter where you are (or aren’t) in terms of your retirement savings, the next best course of action to take is pulling out a pencil and a piece of paper and fleshing out — as specifically as possible — your money map for the foreseeable future and adjusting your current plan as necessary.

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