Additional Coverage:
For those in their 60s, the average net worth stands at $1,512,799, while the median net worth is $290,865, according to Empower. The average can be misleading due to extreme outliers, so the median, representing the midpoint of all net worths, offers a clearer picture of typical savings in this age group.
Half of those in their 60s have a net worth above $290,865, and half below. Keep in mind that your specific age within your 60s will naturally influence your net worth.
While net worth is a key factor in retirement planning, it’s not the sole determinant. Many find $290,865 insufficient for a comfortable retirement, especially since this figure encompasses all assets, not just retirement savings. If you’re concerned about boosting your net worth as you approach retirement, consider these strategies:
- Increase your income: A part-time job or side hustle can significantly accelerate savings and help tackle high-interest debts.
- Prioritize debt reduction: Eliminating debt minimizes interest payments, freeing up funds for retirement.
- Explore Medicare options: If you’re 65, consult a Medicare broker to select the most cost-effective plan.
- Maximize catch-up contributions: Take advantage of higher 401(k) contribution limits for those age 50 and older.
Those between 60 and 63 can contribute an extra $11,250 starting in 2025.
- Seek senior discounts: Many businesses offer discounts to seniors; take advantage of these opportunities.
- Consider downsizing: If feasible, selling a larger home and moving to a smaller one can reduce housing costs and free up equity. However, carefully evaluate current market conditions before making a move.
- Travel strategically: Opt for off-season travel to secure lower airfare and hotel rates, while also avoiding crowds.
- Leverage membership programs: Organizations like AARP and AMAC offer discounts that can offset membership fees.
- Utilize loyalty programs: Join free loyalty programs at your favorite retailers for potential savings.
- Embrace the library: Libraries offer free access to books, movies, and other resources, reducing entertainment expenses.
Building a robust net worth before retirement may require some sacrifices, but it paves the way for a more secure and enjoyable retirement.
Here are some additional financial tips for everyone:
- Focus on paying off debt: Explore options like balance transfer credit cards and debt counseling.
- Earn extra income: Consider a part-time job or side hustle for additional financial flexibility.
- Cut expenses: Review major expenses, such as auto insurance, for potential savings. Using travel credit cards strategically can also help offset travel costs.