But many people who are closing in on their own retirement date don’t have close to that much.
Empower reports that the median retirement savings for Americans in their 50s who have linked their retirement accounts to their dashboard is $462,104, rising to $566,900 for those in their 60s, which is still a far cry from the numbers above. The Northwester Mutual survey noted that “nearly half of Americans believe it is somewhat or very likely they will outlive their savings.”
However, even if they retire without a seven-figure portfolio, many retirees can find ways to get by. Here’s why you might want to relax a bit, even if you don’t think you’ll hit your goal by the time you want to leave the workplace.
Don’t forget about Social Security
Social Security serves as a critical safety net for those with little or no savings. As of August 2026, the average monthly retirement benefit is $2,087.52, or just over $25,000 annually, according to the Social Security Administration (SSA).
Retirees can then supplement that income with whatever savings they have. If a retiree in their 60s has retirement savings of, say, $570,000, then an annual 4% withdrawal rate could provide $22,800 in additional income.
In short, many retirees — despite modest or even no savings — can rely on a combination of Social Security and limited savings to support a basic but sustainable retirement. And for many, expenses in retirement are lower than expected.
Your expenses in retirement are often lower
Living expenses often decline in retirement, largely because many retirees own their homes outright or downsize to smaller and less expensive houses.
Housing is typically one of the largest household expenses. Without a mortgage or rent, or with lower monthly housing expenses, and with no daily commute or dependents to support, retirees generally face lower costs than working-age adults.
Data from the Bureau of Labor Statistics (BLS) shows that the average household led by someone 65 or older spent about $61,432 annually, as of 2024. That level of spending can often be covered by two Social Security checks, if you and your spouse are both collecting, and modest investment income.
Even retirees who live alone may still meet their basic needs through Social Security and basic savings. The one area in which all retirees need to prepare most is healthcare costs, which can include ensuring you have a strong long-term care insurance plan and can take advantage of health savings accounts before you retire.
