Apr 16, 2026
If you're entering your 60s with only a modest amount saved for retirement, you're not alone.
Roughly 13% of seniors over the age of 65 with annual incomes between $25,000 and $49,999 have no retirement savings, according to the American Enterprise Institute (AEI) (1).
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Among those who have savings at this age, the amounts are often modest. The average 401(k) balance for someone over the age of 65 was about $299,442 at the end of 2024, according to Vanguard (2). The median balance for this cohort was just $95,425.
None of those figures are close to what most Americans would describe as "a comfortable retirement." While some may feel discouraged, there are still practical steps you can take to improve your situation.
Step 1: Delay Social Security as long as possible
Without a personal safety net, your best bet may be to maximize your Social Security benefit.
Tens of millions of retirees across the country rely on Social Security benefits for income. The program has lifted roughly 17 million seniors out of poverty, and about 37.6% of people over age 65 would fall below the official poverty line without it, according to the Center on Budget and Public Priorities (3).
If you're in your 60s, there's not much you can do to change how much you've contributed to the system over the course of your career. However, you can still control the timing of your claim, which can make a significant difference.
For those born after 1960, delaying claims until the age of 70 can boost the monthly payout by a whopping 24% due to delayed retirement credits (about 8% per year) (4). For many people, especially those with limited personal savings, this boost in guaranteed, inflation-adjusted income can be a game changer.
So, if you're in your 60s, consider delaying your claim if your health, income, and life expectancy make that possible.
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Step 2: Strategically catch up this decade
Your 60s could be a golden opportunity to double down on tax planning, increased savings, and disciplined investing.
Take the time to analyze every aspect of your monthly budget and look for ways to temporarily increase your savings rate. These additional savings can be deployed in relatively conservative, well-diversified investments aligned with your time horizon.
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Anyone over the age of 50 can start making catch-up contributions to their 401(k). Under current law, starting in 2025, those ages 60 to 63 can make a higher "super catch-up" contribution — up to $11,250 (indexed for inflation) on top of the standard limit (5).
These steps may not get you all the way to your target retirement savings, given the time you have to work with, but they can meaningfully improve your financial position and retirement income outlook.
Step 3: Rethink your retirement lifestyle
Your annual budget is a key variable in retirement planning. Savings of $300,000, for instance, could be either insufficient or inadequate, depending on how much you plan to spend each year for the rest of your life.
With that in mind, reducing your planned budget through lifestyle changes could be a great way to lower the target you need to reach. For example, downsizing to a smaller home could significantly reduce housing costs. Moving to a new city or region with a lower cost of living could do the same. Relocating abroad may further reduce expenses, but requires careful planning around taxes, health care, and residency rules.
You could also consider ways to continue working in retirement to close the gap. A freelance consulting gig or part-time job may provide supplemental income if Social Security and personal savings aren't enough.
You don't need to change everything. But even one meaningful adjustment could help ensure your savings last longer and support a more sustainable retirement.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
American Enterprise Institute (1); Vanguard (2); Center on Budget and Policy Priorities (3); Social Security Administration (4); Fidelity (5)
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
