What 75-Year-Old Americans Typically Have Saved for Retirement

Retirement savings often reach their highest point in the early to mid-60s. That is usually when people leave the workforce and begin drawing down the money they have set aside over the years.

Because of that pattern, many people will have less saved at 75 than they did at 50, 55, or 60. So what does the typical retirement account balance look like at age 75, and how does it stack up against your own?

The average savings of 75-year-olds today

According to the Federal Reserve’s Survey of Consumer Finances, households headed by someone age 75 or older have average retirement savings of about $798,710. That figure includes 401(k)s, IRAs, and other retirement-focused accounts.

It is an average, meaning it is calculated by adding up all household balances and dividing by the number of households. That makes it sensitive to extremes, from households with very large portfolios to those with none at all.

Why the median is more revealing

The median can be a better measure. It marks the middle point, with half of households holding more and half holding less. For households headed by someone 75 or older, the median retirement account balance is $257,000, according to the Federal Reserve’s Survey of Consumer Finances.

That is less than one-third of the average. A small number of very large accounts pushes the average higher, while the median is not distorted by those outliers. For most retirees, the median may be the more realistic comparison point.

Why balances peak before 75

The median amount may look modest at first glance, but it reflects an important stage of retirement: many households have already used a significant portion of their savings by this age.

Peak balances generally occur sometime between ages 65 and 74. By 75, many seniors have been relying on those funds for nearly a decade. At that point, most people are no longer in the saving phase and are instead using their accounts, often alongside Social Security, to cover living expenses.

Why accounts shrink in the 70s

It is normal for balances to fall in later life, in part because people are usually no longer working full time. Later in the decade, withdrawals are also shaped by required minimum distributions, since the IRS requires yearly withdrawals from tax-deferred accounts after RMD age.

Common reasons for lower balances in the 70s include:

• Required minimum distributions from traditional IRAs and 401(k) plans
• Higher health care and long-term care expenses
• Market swings in some cases

This is intentional spend-down. In retirement, drawing money from savings is part of the plan.

What these numbers do not show

Retirement account balances do not tell the whole story. A $257,000 balance can mean very different things depending on a household’s overall finances, including:

• Total debt, including loans on homes or vehicles
• The market value of real estate
• Future Social Security income
• Income from pensions or annuity-like payments

Other factors matter too, such as whether long-term care will be needed or whether someone can live with family in later years. A single benchmark cannot capture every retirement situation.

The benchmark that matters most

A stronger retirement plan focuses less on national averages and more on whether income covers spending. If your cash flow is enough to pay your bills now and in the years ahead, the exact size of your account balance matters less than you might think.

To check that, total up your dependable monthly income from savings, investments, pensions, Social Security, and any side work, then compare it with your monthly expenses. Leave room for unexpected medical costs or home repairs. If you consistently have a surplus, you are likely in better shape than a raw average suggests.

What to do if your savings feel low

National averages can still be useful because they encourage a closer look at your own finances. If your numbers are below what you need for a comfortable retirement, there may still be ways to improve the situation.

One approach is to reduce discretionary spending first, such as travel, gifts to adult children, or dining out, before cutting essentials like prescription drugs. It may also help to review your withdrawal strategy with a fiduciary financial planner to see whether tax planning could improve outcomes. Deciding which accounts to tap first — taxable, tax-deferred, or Roth — can make a meaningful difference.

Bottom line

Whether you are closer to the average of $798,710 or the median of $257,000, the main idea is the same: retirement savings are meant to be used in later life. The real concern is not the headline number, but whether your income and assets are enough to last throughout retirement.

A yearly review of your Medicare coverage, medical needs, account balances, and expected income can help you stay on track. Think of it as a regular financial checkup and a good reason to mark another year in retirement.

FAQs

What is the RMD age?

For most people in their 70s, the required minimum distribution age is 73. It is scheduled to rise to 75 in 2033 for people born in 1960 or later. Failing to take the correct amount can trigger a tax penalty of 25% on the shortfall, though that penalty can fall to 10% if the mistake is corrected quickly.

Do you still pay taxes on retirement account withdrawals at 75?

Yes. Withdrawals from traditional 401(k)s and IRAs are taxed as ordinary income at any age, including required minimum distributions. Roth withdrawals are generally tax-free if the account meets IRS holding period rules.

How much is the average Social Security check for a 75-year-old?

According to Kiplinger, the average Social Security benefit for people age 75 and older is about $2,231 a month, or more than $26,000 a year. The Pew Research Center says nearly 93% of Americans in this age group receive Social Security, making it one of the most common sources of retirement income at this stage of life.

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