Here's The Average Retirement Savings of 74-Year-Old Americans (How Do You Compare?)

Key Points:

• The average 401(k) balance for Americans aged 65 and older is $299,442, but this figure is skewed by wealthy individuals; the median balance, which better represents a typical retiree, is $95,425.
• Fidelity recommends having saved about 10 times your annual working salary by age 67, which for the median income of $47,790 translates to roughly $478,000 in retirement savings by age 74.
• Many 74-year-olds have lower retirement savings because they have been withdrawing funds during retirement, with the median balance allowing a safe annual withdrawal of only about $3,817, compared to $11,977 for the average balance.
• Social Security provides modest income, with average monthly payments ranging from $1,424 at age 62 to $2,275 at age 70, which combined with retirement savings may not be sufficient for many retirees.
• To improve financial stability, retirees may need to consider part-time work, side hustles, pensions, or paying off mortgages, while younger individuals are encouraged to start saving early to benefit from compound growth.