{"id":692937,"date":"2026-06-09T05:48:17","date_gmt":"2026-06-09T05:48:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/692937\/"},"modified":"2026-06-09T05:48:17","modified_gmt":"2026-06-09T05:48:17","slug":"heres-the-average-retirement-savings-of-73-year-old-americans-how-do-you-compare","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/692937\/","title":{"rendered":"Here’s The Average Retirement Savings of 73-Year-Old Americans (How Do You Compare?)"},"content":{"rendered":"


\nAt 73, retirement is fully underway. The IRS now requires you to take annual distributions from your traditional IRA and 401(k) accounts, whether you need the money or not. That shift makes this a critical year to understand where your savings stand in your retirement plan<\/a> and whether the way you’re drawing them down is working in your favor. \n<\/p>\n


\nHere’s how much Americans at 73 typically have saved. Find out how you compare and what to do to get on track. \n<\/p>\n

\nEditor’s note: Retirement savings data comes from the Federal Reserve Survey of Consumer Finances and Vanguard retirement account research unless otherwise stated. \n<\/p>\n

What’s the average retirement savings at 73?<\/p>\n


\nAge 73 sits at the upper end of the Federal Reserve’s 65 to 74 age bracket. According to the most recent Survey of Consumer Finances, Americans in this group have an average retirement account balance of $609,230. That figure includes 401(k)s, IRAs, and defined benefit plans with a cash value. It’s a meaningful number, but it’s not representative of where most people actually land. \n<\/p>\n

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How the median compares and why it’s different<\/p>\n


\nThe median retirement savings for households aged 65 to 74 is about $200,000, and for most people, that number is more accurate than the average. The gap between $609,230 and $200,000 exists because retirement wealth in America is heavily concentrated at the top. A small number of households with seven-figure balances pull the average well above what most people hold. The median reflects the middle point. \n<\/p>\n

Typical 401(k) balances after age 73 <\/p>\n


\nFor many retirees, a 401(k) remains the largest retirement account. According to Vanguard’s “How America Saves 2025” report, Americans 65 and older have an average 401(k) balance of $299,442, with a median of $95,425. \n<\/p>\n


\nLarger balances continue benefiting from investment growth even after withdrawals begin, while smaller accounts may shrink much faster once required minimum distributions and everyday living expenses start drawing down the balance. \n<\/p>\n

How much do you actually need?<\/p>\n


\nThe 4% withdrawal rule remains a widely used retirement planning benchmark. At that rate, $200,000 supports about $8,000 per year in withdrawals. Most 73-year-olds combine those withdrawals with Social Security income. The average Social Security benefit in 2026 is $2,071 per month, or about $24,852 per year. \n<\/p>\n


\nCombined, a retiree with $200,000 saved and an average Social Security benefit brings in roughly $32,852 annually. \n<\/p>\n

RMDs are now part of the picture<\/p>\n


\nIf you turned 73 in 2026, the IRS requires you to take your first RMD from your traditional IRA or 401(k) this year. The formula divides your December 31, 2025, balance by a life expectancy factor of 26.5 from the IRS Uniform Lifetime Table. On a $200,000 balance, that’s an RMD of approximately $7,547. These withdrawals count as ordinary income, which could affect your tax bracket<\/a>. \n<\/p>\n

One thing to watch: if you turned 73 in 2025 and delayed your first RMD to the April 1, 2026, deadline, you owe two RMDs this calendar year, which stacks income and can push you into a higher bracket, increase Medicare premiums, and raise the taxable portion of your Social Security.\u00a0<\/p>\n

How to make the most of what you have<\/p>\n


\nIf your savings are below the median, there are still practical moves available at 73. The most effective one is by managing your withdrawal sequence carefully. Drawing from taxable brokerage accounts before traditional IRAs in low-income years could even reduce the tax cost of each dollar withdrawn and extend your retirement savings by 3+ years. Below are other practical strategies you could use to boost retirement savings. \n<\/p>\n

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Review your budget for recurring waste<\/p>\n


\nAt 73, fixed expenses often include subscriptions, insurance policies, and memberships that made sense years ago but no longer do. A focused audit of monthly outflows could uncover $200 to $500 in unnecessary spending. \n<\/p>\n


\nRedirecting that amount into a high-yield savings account earning around 4% adds $2,400 to $6,000 annually to your liquid reserves, without touching investments or requiring any additional income. \n<\/p>\n

Consider part-time work if you’re able<\/p>\n


\nWorking part-time at 73 isn’t the right fit for everyone, but for those who can, it carries a specific financial advantage at this age. Since you’ve already passed full retirement age, there’s no earnings test \u2014 you could earn any amount without your Social Security benefit being reduced. \n<\/p>\n


\nEven $12,000 to $15,000 per year in part-time income covers daily expenses, delays portfolio withdrawals, and gives investments more time to compound. \n<\/p>\n

Downsize or tap home equity strategically<\/p>\n


\nApproximately 76% of retirees aged 65 to 74 own their home, with a median value of $320,000.You could downsize to a smaller property to free up some equity while reducing ongoing maintenance, property taxes, and utility costs. \n<\/p>\n


\nA reverse mortgage is another option to consider. It converts home equity into tax-free income without requiring a monthly payment. It’s worth modeling both options with a housing counselor before committing. \n<\/p>\n

Reassess your withdrawal sequence<\/p>\n


\nMany retirees default to pulling from whichever account is most accessible without considering the tax consequences. At 73, drawing from taxable brokerage accounts first \u2014 before touching traditional IRAs beyond the required RMD \u2014 could meaningfully reduce your annual tax bill. \n<\/p>\n


\nRoth accounts should generally be preserved longest since they carry no RMDs and produce no taxable income. Adjusting the sequence alone might add years to how long your savings last. \n<\/p>\n

Use a QCD to satisfy your RMD tax-free<\/p>\n


\nAre you charitably inclined? If so, a Qualified Charitable Distribution could be the most tax-efficient move available to you at 73. Rather than withdrawing from your IRA and then donating the proceeds, a QCD routes up to $111,000 directly from your IRA to a qualified charity in 2026. \n<\/p>\n


\nIt satisfies your RMD without the withdrawal ever hitting your taxable income, keeping Medicare premiums lower and reducing how much of your Social Security gets taxed. \n<\/p>\n

Bottom line<\/p>\n


\nAt 73, average retirement savings sit around $609,230, while the median stands at $200,000. The gap shows that averages create unrealistic expectations, which is why comparing yourself against the median often gives a clearer perspective. \n<\/p>\n


\nLuckily, there’s still time to build your savings even more<\/a> through high-yield certificates of deposit, annuities that guarantee lifetime income, and diversifying into income-generating assets that reduce your reliance on one account type. \n<\/p>\n

FAQs<\/p>\n

What percentage of my IRA do I have to withdraw at 73?<\/p>\n

The IRS does not set a flat percentage. Instead, your RMD is calculated by dividing your account balance as of December 31 of the prior year by a life expectancy factor from the IRS Uniform Lifetime Table. At 73, that factor is 26.5, which works out to roughly 3.77% of your balance. The percentage rises slightly each year as the life expectancy factor decreases.<\/p>\n

How long will $200,000 in retirement savings last?<\/p>\n

Using the 4% withdrawal rule, $200,000 generates about $8,000 per year, which theoretically stretches the balance to around 25 years. In practice, longevity depends on investment returns, inflation, healthcare costs, and how much you withdraw beyond your RMD each year. Most financial planners recommend pairing savings withdrawals with Social Security income to reduce the draw on the portfolio and extend how long it lasts.<\/p>\n

Can I still contribute to an IRA at 73?<\/p>\n

Yes. The SECURE Act of 2019 eliminated the age limit on traditional IRA contributions, so you can contribute at any age as long as you have earned income. Roth IRA contributions are also available with no age restriction. Keep in mind that contributing to a traditional IRA while also taking RMDs does not offset or reduce what you owe \u2014 the two are calculated separately.<\/p>\n

When did the RMD starting age change to 73?<\/p>\n

The SECURE 2.0 Act, signed into law in December 2022, raised the RMD age from 72 to 73, effective January 1, 2023. It is scheduled to increase again to 75 in 2033. If you started taking RMDs at 72 under the old rules, you continue under your existing schedule and do not get to pause or reset.<\/p>\n

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