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At 60, you may be ready to think about retirement. But are your savings equally ready to go? According to the 2026 Retirement Confidence Survey by the Employee Benefits Research Institute, 64% of Americans are confident they'll have enough money to retire comfortably. That leaves 36% feeling not so sure.
Guidelines from the investment firm Fidelity suggest you should have roughly eight times your annual salary in retirement savings by the time you reach 60, if you plan to retire at 67. Here's more about what it takes to retire—and how you can use your remaining work years to gear up.
How Much Should You Have Saved by 60?
According to guidelines developed by Fidelity Investments, you should have saved roughly eight times your annual salary by age 60. The guidelines assume you're saving 15% of your salary every year and are planning to retire at age 67, the age at which people born after 1960 can collect full Social Security benefits. To better understand how savings play out in real dollars, here's a hypothetical example.
Example: To keep the math simple, let's say your current salary is $100,000 a year. According to Fidelity guidelines, you should have $800,000 saved up by age 60 and $1 million by 67. How do you get from $800,000 to $1 million with $100,000 in annual income?
- Save $2,400 per month. If you set aside $2,400 per month for seven years, you'll save $201,600 in seven years (not including any interest earned) for a total of $1,001,600.
- Get a 4% return. If your money returns an average of 4% annually, you'll have just over $1.05 million at 67, even without additional contributions.
- Contribute 15% and earn 1.5% annually. A monthly contribution of $1,250 and a conservative return of just 1.5% gets you to over $999,000 in seven years.
Say you're 60 today and you retire at 67. Using the figures in our example, your monthly Social Security benefits would be $2,778. (Estimate your own Social Security benefits on the Social Security site.) Fidelity suggests planning to withdraw roughly 45% of your salary each year, the equivalent of about $4,000 in monthly income in our example. If you stick to these numbers, by Fidelity's calculation you should stay on track financially through age 93.
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How Much Money Do You Need to Retire?
Fidelity recommends having 10 times your annual income saved by the time you're ready to retire at 67. However, the amount you'll need personally will depend on a variety of factors. Before you celebrate—or despair—over your projected funds, think through these questions:
- How much income do you need to support your lifestyle? Consult your current budget, but also look ahead at factors that may affect your needs when you retire. Will your mortgage be paid off? Will switching to Medicare save you money? Will you spend less on clothing, cars, dry cleaning or dining out? Will you spend more on travel?
- What sources of income will you have? In addition to retirement savings and Social Security, do you have separate savings, passive income or additional pensions you can tap?
- How long can you work? Can you continue doing your current job for as long as you want? Is it possible your job will end? Do you feel physically and emotionally capable of working for another five or 10 years?
- What will you do if you run out of money? You don't want to resort to a backup plan, but you should have one just in case.
The answers to these questions can be complicated. If you need an expert eye, consider working with a financial advisor to help you figure out exactly what your options might be. At age 60, you don't have decades to save and invest for your future retirement, but you do have time to gather the facts, make some plans and save, save, save.
Learn more: Expenses That Can Rise in Retirement
How to Save More Money for Retirement
Whether you have a lot or a little saved toward retirement, you may want to take this opportunity to save a little more. How can you stash away more for retirement during the home stretch of your working life?
- Max out your 401(k) contribution. Your 401(k) comes with important tax advantages that can help maximize the impact of every dollar you contribute. Many employers match retirement contributions, making your contribution even more valuable.
- Contribute to a separate IRA or Roth IRA. Your contribution to a traditional individual retirement account (IRA) may be tax deductible. Roth IRA contributions are not tax deductible, but your future retirement withdrawals are tax free.
- Use catch-up contributions. In 2026, you can contribute an additional $8,000 to your 401(k) and an additional $1,250 to your IRA if you're age 50 or older. As a bonus, eligible people ages 60 to 63 can make super catch-up contributions of up to $11,250 (instead of $8,000) to their workplace retirement plans in 2026. These limits adjust yearly for inflation, so check current-year contribution limits for the latest catch-up amounts.
- Optimize your investments. Review your investment and savings portfolio and make sure your money is working hard for you. Even a small uptick in interest, dividends or investment returns adds up and will compound over the years.
- Convert to a retirement lifestyle now. An empty nest, changing work requirements, a simpler life—some elements of a less expensive retired lifestyle may be available to you now. Start downsizing and saving wherever you can.
- Find an encore career. Does converting to part-time work make continuing to work seem more appealing? Is there another type of work you might enjoy, even if it pays less? A new career or side business could bridge the gap between your current job and no job at all.
Frequently Asked Questions
What Are the Average Retirement Savings by Age?
Here's how average and median retirement balances break down by different age categories, according to the Federal Reserve's most recent Survey of Consumer Finances:
| Age | Average Combined IRA and Pension Accounts | Median Combined IRA and Pension Accounts |
|---|---|---|
| Under 35 | $49,130 | $18,880 |
| 35-44 | $141,520 | $45,000 |
| 45-54 | $313,220 | $115,000 |
| 55-64 | $537,560 | $185,000 |
| 65-74 | $609,230 | $200,000 |
| Over 75 | $462,410 | $130,000 |
Source: Federal Reserve 2023 Survey of Consumer Finances
What if You Haven't Saved Enough to Retire?
If you suspect you don't have enough savings to retire, your top priority is to develop a plan. If you can, get help from a financial advisor or retirement planner. They can help you understand your options and focus your efforts in the limited time you have before retirement.
Take stock of your assets and potential income, then calculate the gap between what you have and what you'll need. You may want to consider working longer, continuing to work part time or delaying Social Security to maximize your benefits. Now is a good time to save aggressively and lower your expenses as well. Every bit of savings helps.
Learn more: How to Increase Your Social Security Benefits
The Bottom Line
At 60, you have time to save, adjust your plans and cultivate new opportunities. As you plan, don't overlook the value of good credit. Having access to credit cards, low-interest home and auto loans, good scores for rental applications and more expands your choices as you age. Check your credit report and FICO® Score☉ Θ or sign up for free credit monitoring that will help you track your credit into the future. You have exciting choices to make in the years ahead; here's to making the most of your options.