By 60, the retirement finish line is finally in sight, but the numbers on many 401(k) statements do not match the glossy brochure version of retirement. Data from Empower, reported in mid‑2025, shows an average balance for people in their 60s of $568,040 in a 401(k), yet the typical saver sits much lower, with a median around $188,000. That gap between average and median is the story: a small group of high earners and super‑savers are pulling the average up, while a large share of Americans in their late 50s and early 60s have modest savings or no retirement account at all.
The real question is not whether you match a headline number, but whether your savings, income, and time horizon line up with the lifestyle you expect. To answer that, I look at three things: what 60‑year‑olds actually have in their 401(k)s, how uneven those balances are across the population, and what levers are still available in the final working years to close the gap.
What the “average” 60-year-old really has in a 401(k)
On paper, the typical 60‑something American looks impressively prepared. According to Empower data summarized in one set of Key Takeaways, the average 401(k) balance for people in their 60s was $568,040 as of June 2025. That figure reflects decades of market growth and the cumulative effect of automatic payroll deductions for workers who had access to plans and stayed invested through downturns.
The more revealing number, though, is the median balance, which the same Empower snapshot put at about $188,792 for this age group. A separate analysis of a typical 60-year-old found a similar pattern, with a wide spread between the high‑balance minority and everyone else. In practical terms, that means half of savers in their early 60s have less than roughly $190,000 in their 401(k), a sum that can support only a modest income in retirement unless it is supplemented by other assets or ongoing work.
Why averages mislead: the inequality baked into 401(k)s
The gap between $568,040 and $188,792 is not a rounding error, it is a map of inequality. Averages are pulled up by executives, professionals, and long‑tenured workers in high‑paying industries who have contributed the maximum for years. Median figures, by contrast, capture the middle of the pack, including people who dipped in and out of the workforce, faced layoffs, or worked for employers that never offered a 401(k). When I compare these figures to age‑based tables that track 401(k) balances across the working life, the pattern is consistent: the higher the income, the more likely a worker is to be near the average rather than the median.
For example, one breakdown for savers between Age 45 and 54 shows an Average 401(k) balance of $188,643 but a Median balance of just $67,796. The same skew persists into the 60s, which suggests that income inequality, more than pure savings discipline, explains most of the variance in retirement balances. High earners can afford to max out contributions and ride market gains, while lower earners often struggle to contribute at all after covering housing, healthcare, and debt.
The missing middle: nearly half have no retirement account
There is an even starker reality behind the median. According to Federal Reserve data from 2022, just 57% of Americans in their mid‑50s to mid‑60s have any retirement account at all. That figure includes not only 401(k)s but also individual retirement accounts and similar plans. In other words, roughly 43% of people on the cusp of traditional retirement age are starting from zero in tax‑advantaged accounts.
This is where I part ways with some of the more upbeat coverage that focuses on rising average balances. If nearly half of Americans in the 55 to 64 bracket have no retirement account, then the story is less about whether a diligent saver at 60 is “behind” and more about a system that leaves a huge share of workers without access or ability to save. The 401(k) was designed as a workplace benefit, not a universal safety net, and the data on Americans with nothing saved shows how fragile that model is for lower‑wage and gig workers.
How 60 compares with earlier decades of saving
To understand whether a 60‑year‑old is behind, it helps to see the trajectory that leads there. Age‑based tables of 401(k) balances show that the mid‑career years are when the gap between average and median really opens up. For workers between 45 and 54, the reported Average 401(k) balance is $188,643, while the Median is $67,796, according to one Age 45 to 54 breakdown. That is the decade when catch‑up contributions become available and compound interest has the most runway left.
By the time someone reaches 60, those who were already near the average in their late 40s and early 50s have had another 10 to 15 years of contributions and market growth, which helps explain the $568,040 average for people in their 60s. Broader tables of Plan Balances by Age show the same pattern: balances climb sharply in the final working years for those who are already in the system. That suggests that the most powerful predictor of a strong 401(k) at 60 is not a heroic last‑minute push, but whether someone was already saving consistently in their 40s.
What a “behind” 401(k) looks like in real life
So how do you know if your own 401(k) is lagging? One useful lens is to compare your balance to your income. Many planners suggest aiming for a multiple of annual pay by certain ages, but the data on actual 401(k) balances shows that a large share of 60‑year‑olds fall short of those rules of thumb. One analysis of the average 401(k) balance at 60 found a typical account size of about $187,957, with a wide range above and below that figure, according to a breakdown of what There the average 60‑year‑old has saved.
If your balance is well below that level and you have little in other accounts, you are likely to rely heavily on Social Security and perhaps part‑time work. On the other hand, if your 401(k) is near or above the $568,040 average for people in their 60s, you are in a relatively strong position compared with your peers, even if you still feel anxious about market swings or healthcare costs. A separate look at retirees age 60 and older using Fidelity data underscores that even sizable balances can feel tight if someone expects a high‑spending lifestyle or retires very early.
Why income, not just discipline, drives the gap
It is tempting to frame retirement readiness as a morality tale about personal responsibility, but the numbers point to something more structural. When I look across the age‑based tables of 401(k) balances and the share of Americans without any retirement account, the through‑line is income. Workers in the top earnings quintiles are far more likely to have access to a 401(k), to receive an employer match, and to contribute enough to reach the annual cap. That is why the average 401(k) balance for people in their 60s can sit at $568,040 while the median is $188,792, as reported in the Empower Key Takeaways.
Federal Reserve data showing that only 57% of mid‑50s to mid‑60s Americans have any retirement account at all reinforces this point. If nearly half of people in that age band are outside the system, then lectures about maxing out contributions miss the mark. The more accurate framing is that the 401(k) system amplifies existing income inequality: those with steady, well‑paid jobs accumulate large balances, while those in low‑wage or unstable work end up with little or nothing. That is why I see income inequality, rather than inconsistent saving behavior alone, as the dominant driver of the variance in 401(k) balances among 60‑year‑olds.
How much runway is left at 60?
Even if your 401(k) balance at 60 looks thin next to the averages, the game is not over. Many people now work into their late 60s or early 70s, whether by choice or necessity, which effectively adds another decade of potential contributions and investment growth. Age‑based savings tables that track Savings Rate by Age show that contribution percentages often rise in the final working years as mortgages are paid down and children become financially independent.
Catch‑up contributions, which become available in the 50s, are a key part of that late‑career push. The earlier Age 45 to 54 snapshot with an Average 401(k) balance of $188,643 and a Median of $67,796 suggests that many workers do not fully exploit this feature, which is one reason balances at 60 are so uneven. If policymakers expand catch‑up limits or create automatic enrollment for part‑time and gig workers, I expect the next generation of 60‑year‑olds to show a narrower gap between average and median balances, though that prediction depends heavily on wage growth keeping pace with inflation.
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*This article was researched with the help of AI, with human editors creating the final content.
Nathaniel Cross focuses on retirement planning, employer benefits, and long-term income security. His writing covers pensions, social programs, investment vehicles, and strategies designed to protect financial independence later in life. At The Daily Overview, Nathaniel provides practical insight to help readers plan with confidence and foresight.
