By age 58, it may feel time to floor the gas pedal <\/p>\n
at the on-ramp ofretirement<\/p>\n
.\u00a0Retirement’s close enough that all that abstract, decades-long planning hitsdifferent. And yet it’s still far enough away that there’s time to makemeaningful changes.<\/p>\n
For many, this is the first time they take a long, sober look at their 401(k)and ask themselves if they’re really on track.<\/p>\n
Savings levels vary wildly. Here’s a peek at what the average 58-year-old hasset aside for retirement. See how your own progress compares.<\/p>\n
Find Out:<\/p>\n
14 benefits seniors are entitled to but often forget to claim<\/p>\n
Average 401(k) balance of 58-year-old Americans<\/p>\n
According to a Vanguard report, workers age 55 to 64 have an average 401(k)balance of $271,320<\/p>\n
Fidelity’s research shows similar figures. Their data reveals that Americansaged 55 to 59 years old have an average workplace retirement balance of$244,900.<\/p>\n
Combined, Vanguard and Fidelity figures indicate the average 58-year-oldAmerican has an average 401(k) or retirement savings balance of $258,110.<\/p>\n
Who really has the cheapest auto insurance in your area?<\/p>\n
Check your zip code here.<\/p>\n
A closer look at the “average” balance<\/p>\n
Averages can be deceiving. According to the Congressional Research Service(CRS), most 58-year-olds have far less saved than $258,110.<\/p>\n
Among all Americans ages 55 to 64:<\/p>\n
43% have <\/p>\n
no <\/p>\n
retirement savings.<\/p>\n
88.6% have less than $100,000 saved.<\/p>\n
Why age 58 matters so much<\/p>\n
Age 58 is a pivotal time in retirement planning.<\/p>\n
Many workers are close to qualifying for the Rule of 55, which allowspenalty-free withdrawals from a 401(k) or 403(b) before full retirement age \u2013 ifyou leave your job the year you turn 55 or later. For public safety employees,this rule kicks in at age 50.<\/p>\n
Such flexibility can shape early-retirement decisions.<\/p>\n
On the flipside, age 58 is when many people realize they may need to work longerthan expected \u2014 sometimes into their 70s \u2014 especially if they reach this agewith nothing saved.<\/p>\n
Do you have equity in your home?<\/p>\n
Compare home equity options to potentially pay off debt, fund renovations, and more.<\/p>\n
How much should you have saved by age 58?<\/p>\n
There’s no one-size-fits-all number, but Fidelity’s retirement guidelines offera rough benchmark. Their financial experts suggest having 6x your annual incomesaved by age 50 and 8x by age 60.<\/p>\n
At 58, most people aim for somewhere in between, especially if they’re hoping tomaintain the same standard of living.<\/p>\n
These ratios are general rules of thumb, but they can offer a directional readto see if you’re on track.<\/p>\n
58-year-olds <\/p>\n
should <\/p>\n
have $412,464 saved<\/p>\n
Fidelity’s guidelines and average wages for American workers would mean that theaverage 58-year-old should have $412,264 saved.<\/p>\n
Per the BLS, Americans aged 55 to 64 average $68,744 in yearly wages.Multiplying that figure by six, as Fidelity suggests, brings the total targetfigure to $412,264. (That figure rises to $549,942 if you use the 8x benchmarkfor 60-year-olds.)<\/p>\n
Even with the average $258,110 set aside for retirement, this still leaves ashortfall of $154,354. And when 88.6% have less than $100,000 saved, thissuggests that most 58-year-olds are far behind and have some serious catching upto do.<\/p>\n
Many with 401(k) plans may not realize they’re behind<\/p>\n
Most people aren’t recklessly spending. Many may not realize they should besaving more in their 401(k) plan \u2013 if financially feasible. Experts oftenrecommend setting aside 15% of your pre-tax income each year for retirement.<\/p>\n
Talk to a financial planner about your contribution rate and whether it’sappropriate to make adjustments or consider other savings vehicles.<\/p>\n
Make Money:<\/p>\n
8 things to do if you’re barely scraping by financially<\/p>\n
58-year-olds who <\/p>\n
are<\/p>\n
on track<\/p>\n
Not everyone is behind. A lucky few who started saving early \u2013 or benefited fromdual-income households \u2013 often land ahead of schedule at 58.<\/p>\n
Some have access to pensions, inheritances, or strong employer matches thathelped their balances grow faster.<\/p>\n
A survey by Gold IRA Guide finds that gender and geography also play a strongrole.<\/p>\n
Women have less retirement savings than men. 49% of women have less than$25K saved compared to 36% of men, and men outnumber women 2:1 among savers witha balance of at least $1M.<\/p>\n
Those in politically “blue” states generally have more savings than those in”red” states.<\/p>\n
States with the highest percentage of big savers, those with more than $1million in their retirement accounts, are California (21%), Connecticut (20%),and Michigan (18%).<\/p>\n
Residents of Oklahoma (59%), Indiana (53%), and Alabama (52%) are mostlikely to have saved less than $25K.<\/p>\n
Why so many 58-year-olds fall behind<\/p>\n
Falling short of retirement goals at 58 is not uncommon. This age group isespecially pinched. Many feel the double-squeeze of supporting aging parents,raising older children, or helping adult kids launch into the world.<\/p>\n
Even those who contributed regularly may have had to pause contributions duringfinancial hardships, limiting compounding during key years.<\/p>\n
What if I’m 58 and I’ve saved nothing?<\/p>\n
While it’s not an ideal situation, being 58 with no savings is more common thanmost people think. Personal finance experts like Pete the Planner emphasize thatstarting late does <\/p>\n
not<\/p>\n
mean you’re financially doomed \u2014 it justrequires a focused, accelerated strategy.<\/p>\n
A Yahoo Finance story echoes this, noting that many late starters find ways torebuild through aggressive contributions, downsizing, or delaying retirement tomaximize Social Security.<\/p>\n
The key is action: reassessing expenses, maximizing employer matches, pickingsustainable investment options, and seeking advice from a financial planner.<\/p>\n
Read On:<\/p>\n
13 benefits seniors are entitled to but often forget to claim<\/p>\n
How can I accelerate my retirement savings today?<\/p>\n
For 58-year-olds hoping to close the gap, several tactics can help.<\/p>\n
Use catch-up contributions that allow workers 50+ to put extra money into a401(k) or IRA each year, speeding up growth as retirement nears.<\/p>\n
Increase automated contributions every few months<\/p>\n
Pick up part-time or consulting work<\/p>\n
Reduce expenses where able<\/p>\n
Refinance high-interest debt<\/p>\n
The goal is to boost your retirement accounts during the years when your incomemay still be near its peak.<\/p>\n
Bottom line<\/p>\n
At 58, your 401(k) balance tells only part of the story. Whether you’re ahead,behind, or starting from scratch, you still do have meaningful choices available\u2014 especially with catch-up contributions, strategic planning, and flexibleretirement timelines.<\/p>\n
Average savings numbers can be a helpful benchmark, but they don’t define yourfuture. Every day, Americans in their 50s build strong retirement foundations,and with the right adjustments, you can still shape a secure and sustainableplan.<\/p>\n
And for the lucky few who have oversaved or <\/p>\n
can retire early<\/p>\n
, now’s agood time to talk with a financial planner about other smart money strategieslike tax-sheltered savings or an MYGA annuity.<\/p>\n
More from FinanceBuzz:<\/p>\n
Are you on track for retirement? Take this quiz and find out.<\/p>\n
14 benefits seniors are entitled to but often forget to claim<\/p>\n
$1,000,000 saved? Download this free guide to learn 7 ways to generate retirement income.<\/p>\n","protected":false},"excerpt":{"rendered":"By age 58, it may feel time to floor the gas pedal at the on-ramp ofretirement .\u00a0Retirement’s close…\n","protected":false},"author":2,"featured_media":400672,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":["post-750894","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/750894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=750894"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/750894\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/400672"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=750894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=750894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=750894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}