The Typical 401(k) Balance for 87-Year-Old Americans: How Does Yours Stack Up?

By age 87, most people are well into the later stages of retirement and have already tapped their 401(k) and other savings over many years. At that point, it’s natural to ask how your own retirement finances compare with those of others your age.

Below is a look at the average 401(k)-related balance for an 87-year-old American, along with why the median is often the more useful benchmark.

What the numbers look like at 87

The Federal Reserve’s 2025 Survey of Consumer Finances shows that households age 75 and older had a median retirement account balance of $257,000, while the average was about $798,700. These are the closest available figures for people around age 87, though they come with an important caveat: the Fed groups everyone 75 and older together and includes 401(k)s, 403(b)s, TSPs, and IRAs, not only 401(k) plans.

The wide gap between the median and the average exists because a relatively small number of very wealthy households pull the average upward. For most retirees, the median is the better comparison point.

It’s also worth noting that only 44.6% of households in this age group still hold retirement accounts. That means the published median and average leave out the majority who no longer have one. Many have spent their savings, while others depend on pensions, Social Security, or assets outside retirement plans.

Workplace retirement balances tend to be smaller in later life

Retirement-services provider Empower offers a narrower look at workplace savings.

According to Empower, people in their 80s had a median 401(k) balance of $77,165 and a mean balance of $424,165 as of September 2026. These figures come from users of Empower’s financial dashboard, so they do not represent all Americans.

That drop is understandable. Retirees spend down their savings, and required minimum distributions force annual withdrawals from most traditional retirement accounts after age 73. At 87, the real issue is not whether your balance matches someone else’s, but whether your remaining savings can cover the expenses your regular income does not.

Social Security remains the base layer of retirement income

The Social Security Administration’s 2026 statistical supplement says retired workers age 87 received an average monthly benefit of $2,015.54 in December 2025. That comes to roughly $24,186 a year before Medicare premiums and any taxes.

For someone with modest expenses, that amount may leave only a limited need for retirement withdrawals. Social Security also typically gets annual cost-of-living increases, which helps soften the effects of inflation.

For married couples, both benefits can help cover household costs. But if one spouse dies, the surviving spouse usually does not keep receiving both full payments. In many cases, the survivor instead receives the higher of the two eligible benefits.

A paid-off home can matter more than the size of a 401(k)

Consider two retirees who each receive $2,000 a month from Social Security.

One owns a home outright, while the other pays $1,500 a month in rent. Even with identical savings, their financial lives look very different. A mortgage-free home removes the monthly principal and interest payment, though property taxes, insurance, maintenance, and utilities still apply.

Pensions and annuities also play a major role. A retiree with a $1,200 monthly pension has another $14,400 a year in guaranteed income without needing to sell investments. Before focusing on account balances, it helps to calculate how much dependable income already covers essential costs.

Long-term care can quickly change the picture

A retirement budget that seems comfortable can deteriorate fast if a person begins needing daily help. Home health aides, assisted living, and nursing homes can create costs far above ordinary living expenses.

Medicare generally does not cover long-term custodial care, including ongoing help with bathing, dressing, and similar daily tasks. Medicaid may assist eligible retirees with some long-term care costs, depending on state rules and financial circumstances.

Family members should check accounts and beneficiaries

If you are helping an 87-year-old parent organize finances, begin by making a list of bank accounts, retirement plans, pensions, insurance policies, and recurring bills.

Then focus on three important steps:

1. Review beneficiary designations. The IRS recommends checking retirement plan beneficiaries after major family changes, especially after the death of a spouse.
2. Search for old employer accounts. The Department of Labor’s Retirement Savings Lost and Found Database can help locate forgotten workplace benefits. Consolidating accounts may make them easier to manage, but taxes, fees, and plan features should be reviewed first.
3. Set up proper legal access while your parent can still approve it. A financial power of attorney can let a trusted person manage financial matters without sharing login credentials inappropriately.

The Consumer Financial Protection Bureau also provides guidance for families managing someone else’s money. It is also important to confirm that required minimum distributions are being taken, since missing them can lead to IRS penalties.

Benefits and programs that may lower monthly costs

Even retirees who have collected Social Security for years may still qualify for help they have not yet used.

Medicare Savings Programs can help eligible people with premiums and certain other medical expenses. Social Security’s Extra Help program lowers prescription drug costs for people with limited income.

Other possible sources of support include SNAP food assistance, state property-tax relief, and VA Aid and Attendance for eligible veterans and survivors who need help with daily activities.

Widowed or divorced retirees should also check whether they qualify for a larger Social Security survivor benefit.

The takeaway

An 87-year-old with $50,000 in retirement savings may still be financially secure if Social Security, a pension, and a paid-off home cover most needs. By contrast, someone with $300,000 may still feel pressure if long-term care costs are high.

Another often overlooked issue is how much of that balance is actually spendable. The IRS says withdrawals from traditional 401(k)s are generally taxable, while qualified Roth withdrawals are tax-free. That means two retirees with the same account value could have very different amounts available after taxes. Before estimating how long savings will last, check the account type and the possible tax bill.

FAQs

Will retirement account withdrawals reduce my Social Security benefit?

Withdrawals from retirement accounts do not count as earnings that reduce your Social Security retirement benefit. However, taxable withdrawals can raise your combined income, which may cause more of your Social Security benefits to be taxable at the federal level.

Can an adult child manage a parent’s Social Security with a power of attorney?

A financial power of attorney by itself does not authorize someone to manage a parent’s Social Security benefits. If help is needed with those payments, Social Security generally must appoint a representative payee. That role is separate from authority over bank accounts or retirement savings.

How can I estimate how long my retirement savings will last at 87?

Start by comparing annual expenses with income from Social Security, pensions, and other steady sources. If you need $6,000 a year from a $60,000 account, simple division suggests about 10 years. That estimate does not account for investment returns, taxes, inflation, or surprise expenses, so it should be updated as circumstances change.

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