Here’s how much the average American 60-year-old has in retirement savings — how does your nest egg compare?

Here's how much the average American 60-year-old has in retirement savings — how does your nest egg compare?

Here’s how much the average American 60-year-old has in retirement savings — how does your nest egg compare?

Even Americans with only modest retirement funds may be shocked to learn how many people are in desperate need: As in, they have no nest egg at all.

New research from the Federal Reserve shows that a staggering one in four Americans (including the 27% who consider themselves retired) have absolutely nothing saved.

And even if you have something stashed away, it might not be enough – even if it’s something you can change even late in the game.

Americans are running an estimated $3.68 trillion behind in retirement savings, according to the Employee Benefit Research Institute. While this includes all people aged 35 to 64, those in their 60s still didn’t do so well.

Here’s how your savings stack up – and what you can do if you’re falling behind.

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What is the average?

ONE Vanguard survey found that those between 55 and 64 made an average of about $256,000. But this includes high incomes; breaking the numbers down shrinks to a median of about $90,000.

Interestingly, much has changed in even the short time since 2021, the source of the figures for Vanguard’s study. Last year, Vanguard noted that retirement savings actually increased, thanks to strong stock market performance.

But of course since then Wall Street’s problems has passed most of this year, as even otherwise strong stocks have been severely punished.

Which means the 2023 numbers could drop significantly – although at dollar cost averaging, people who hold out and continue to invest will be rewarded if the market returns to full strength.

Is there a magic pension number?

So how much should do you have when you are 60?

Pension calculators as this can help you get some answers. But the best thing Americans can do is go to a financial advisor who can help them reach their goals.

If you would like a broader approach, Fidelity has ways to find the right numbers for you. Broadly speaking, Americans should aim for the equivalent of their salary at age 30, three times by 40, six times by 50, and eight times by 60.

Read more: ‘Remarkable turnaround’: President Biden just (quietly) scaled back student loan forgiveness — and the change could affect up to 1.5 million borrowers. Are you one of them?

So, if you’re 60 American and make $50,000 a year, that means you need to have $400,000 saved in your retirement account. As you can see, neither average nor the average pension amount even comes close.

That said, the “should” amount doesn’t take into account a ton of variables. Consider, for example, how much you will be able to cut expenses in retirement, the money you may take in through Social Securityassets you can unload or sale of a home.

How can you balance the numbers?

Primarily, talk to a financial advisor. If you don’t have one, talk to friends who have done well with their counselor, or seek referrals from someone you trust.

The advisor must assess your entire financial picture. Do you have children to support when it comes to education or marriage? What is the value of your home and are you planning to move? What asset sources may you have overlooked?

Remember, it is never too late to start put cash aside. Even 5% of each paycheck adds another $96 weekly or $2,500 at the end of the year, which can then composite.

And that’s far better than the zero mark that applies to 25% of Americans: all of whom deserve better than to withdraw from their savings efforts before they start.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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