The ‘Magic Number’ to Retire Jumped to $1.46 Million This Year. The Average 60-Year-Old Has $246,500. Here’s What Closes a Gap That Size.

The ‘Magic Number’ to Retire Jumped to $1.46 Million This Year. The Average 60-Year-Old Has $246,500. Here’s What Closes a Gap That Size. David Beren Mon, August 24, 2026 at 12:15 PM EDT 5 min read Quick Read The average 60-64 year old holds $246,500 in their 401(k), which falls over $1.2 million short of the $1.46 million retirement target Americans cite as necessary. SECURE 2.0 lets workers 60-63 contribute up to $35,750 annually to a 401(k), and delaying Social Security to 70 adds roughly 8% per year in benefits. Average household spending hit $78,535 in 2024 while the personal savings rate fell to 2.8%, pushing retirement targets higher as savings capacity shrinks. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here. Americans now say they need $1.46 million to retire comfortably, according to Northwestern Mutual's 2026 Planning & Progress Study. That figure represents a jump of more than 15% from the prior year's target. For a 60-year-old measuring personal progress, the more useful comparison is what people the same age actually hold. Fidelity's most recent participant data puts the average 401(k) balance for ages 60 to 64 at $246,500. The gap is more than $1.2 million. pixs4u / Shutterstock.com Averages Hide a Wider Distribution The average also understates ho…