You've probably got a good idea of how much the average person saves for retirement as they approach that point in their life. But what about people who are well into retirement? Are they hanging on to enough of their savings to go the full distance?
Numbers from the Federal Reserve's 2022 Survey of Consumer Finances suggest they are. The average remaining retirement savings for the 75-and-up crowd at that time was $462,410. In the meantime, retirement plan administrator Empower reports that, as of October of this year, the average 401(k) balance for people in their 70s is $425,589, while people in their 80s have an average of $418,911 in their former workplace retirement savings accounts.
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Just bear in mind that at least a small number of retirees are sitting on seven-figure stashes, skewing these averages upward. The Fed also reports that, as of 2022, the median (midpoint) retirement savings balance for people at and over the age of 75 was markedly less at $130,000, jibing with numbers from Empower. It says the median 401(k) balance for people in their 70s is $92,225, while the midpoint value for all the 401(k) accounts owned by folks in their 80s is even less at $78,534.
Still, even these modest sums are serviceable when factoring in Social Security benefits. The Social Security Administration reports that 75-year-old recipients are currently receiving an average payment of $2,084.92 per month, while 85-year-old beneficiaries are collecting an average of $1,990.11. It's also worth mentioning that all of these savings numbers are close to the average figures being reported by people just reaching retirement age.
Of course, everyone -- retired or not -- should seek to maximize all these amounts to secure the most comfortable retirement possible.
