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As of 2022, the typical American aged 75 and over had $130,000 in retirement savings, according to the Federal Reserve. However, Americans 65 to 74 had a median retirement savings balance of $200,000.
The reason older people have less money may boil down to the fact that by 75, many people have been retired for a while. And that means they’ve been steadily drawing down on their nest egg.
On the other hand, there are people in their mid-70s and even beyond who continue to work — whether it’s because their jobs are a labor of love or a matter of financial necessity.
Let’s say your father has hit 75 and he’s still plugging away at his desk job. With just $31,000 saved for retirement, it’s natural that you’re both worried about how he’ll get by.
But if your father still earns a salary of $70,000 a year, his situation is far from hopeless. And if he’s able to work a few more years, he still has the chance to boost his savings.
Axios analyzed data [1] from the Bureau of Labor Statistics and found that almost 19% of Americans ages 65 and over were still working as of 2024. And that alone can help compensate for a lack of savings. Plus, there’s Social Security.
The average retired worker today collects about $1,980 per month, or $23,760 per year, in benefits, according to the Social Security Administration. And with $1,240 from his savings, that would bring him to about $25,000 for the year.
Hopefully, your father claimed Social Security at 70, since there’s no financial incentive to hold off on taking benefits beyond that point. In addition, if he is collecting a $70,000 annual salary, he may have more than enough income to cover his expenses. At this point, he should be able to either save some of his salary and, hopefully, the majority of his Social Security income.
Investing those in tax-advantaged accounts like IRAs and 401(k)s can help you build a nest egg to coast through retirement.
Of course, one thing to keep in mind is that if your father is 75 years old with a traditional IRA, he may already be on the hook for required minimum distributions (RMDs). With a 401(k), RMDs can sometimes be deferred if the plan holder is still working.
Roth IRAs do not force savers to take RMDs, though. In this case, your father may want to consider rolling over his traditional IRA into a Roth account.
Since your father will likely have a shorter investment horizon, investing in market-resistant assets like gold might also be worthwhile. This way, your father won’t risk losing a chunk of his retirement portfolio if the market corrects.
You can open a gold IRA account with the help of Priority Gold. Recognized as the most trusted gold company in 2025 by Forbes, Priority Gold offers free account setup and storage as well as free insured shipping for up to five years.
You can also roll over your existing IRA or 401(k) into a precious metals IRA without any penalties or tax implications. And if you wish to sell off your precious metals at any time, Priority Gold offers hassle-free buyback with no fees.
What’s more, you can get up to $10,000 in complimentary silver and a free investor guide when you sign up. Just keep in mind that gold is often best used as just one part of a diversified portfolio.
Read more: Rich, young Americans are ditching stocks — here are the alternative assets they’re banking on instead
A recent Northwestern Mutual survey [2] found that Americans think it takes about $1.46 million to retire securely. But the savings data above reveals that most people don’t have anywhere close to $1.46 million by the time they reach retirement age.
The reality is that the amount of savings it takes to retire comfortably depends on your needs and age. Someone who’s still working at 75 may not need the same savings as someone who decides to retire at 65.
Either way, deciding to retire starts with estimating annual expenses and seeing how much it will take to cover them in the absence of a paycheck — because at 75, it’s unclear how much longer it will be possible to keep plugging away. All it takes is one significant health setback, and that $70,000 salary could evaporate.
While stashing away a portion of the monthly paycheck is a good place to start, your father could also turn spare change from everyday purchases into an investing opportunity with Acorns.
Here’s how it works: Once he links his credit and debit cards, Acorns will automatically round up any purchases you make to the nearest dollar and invest the difference in a diversified portfolio of ETFs.
So, his $4.25 morning coffee becomes a $0.75 investment in the future. While it might not seem like much, just $3 worth of round-ups every day adds up to over $1,000 in a year — and that’s before it compounds and earns money in the market.
The best part? He can get a $20 bonus investment when he signs up with a recurring monthly deposit.
Your father should also maintain enough cash savings to cover at least a year of expenses, so that he doesn’t have to worry about liquidating his investments the moment he retires. One way to do this is to open a high-yield savings account, or HYSA, to take advantage of higher interest rates on his savings. This can be the first step towards building a more liquid emergency fund.
Let’s say your father’s monthly retirement expenses come to $2,800, requiring an annual income of $33,600. Let’s also say he’s getting about $2,600 a month from Social Security because he delayed his claim past his full retirement age of 66 — thereby boosting his benefits by 32% by waiting to take them at 70.
That leaves him with $31,200 per year. With $31,000 in savings, which gives him $1,240 per year, he still has a small shortfall to get to $33,600.
But if you can get your savings up to $60,000, a 4% annual withdrawal rate gives you $2,400 from your nest egg. Add that to $31,200 in Social Security, and you’re where you need to be.
Of course, this does mean doubling his savings. But it may be doable with some strategic moves. Consulting a financial advisor could help you crunch the numbers and draw out a clear retirement plan for your father.
Finding a reputable advisor near you is easier than ever with Advisor.com. All you have to do is answer a few basic questions regarding your current situation and future goals, and Advisor.com will connect you with a vetted FINRA/SEC-registered advisor near you.
Even better, Advisor.com’s network comprises fiduciaries, meaning they’re legally required to act in your best interest.
Hiring a financial advisor can make or break your father’s golden years. That’s why Advisor.com lets you schedule a free, no-obligation consultation to see if your match is the right fit for his future and yours.
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[1]. Axios. “The states with the most older workers, mapped”
[2]. Northwestern Mutual. “Americans Believe They Will Need $1.46 Million to Retire Comfortably According to Northwestern Mutual 2024 Planning & Progress Study”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.