How Much Money Should I Have Saved By 60? Ensuring You’re Financially Set For Retirement

By Aaron Sarentino Reviewed by Nima Vahdat Updated Oct 16, 2023
How Much Money Should I Have Saved By 60? Ensuring You’re Financially Set For Retirement

Knowing how much money you should have saved by age 60 will put you in a position to retire in comfort without money worries.

By the time you turn 60, you may be ready to start thinking about retiring, but how do you know if you’ve saved enough money to make that possible? 

While there are programs like Social Security that provide supplemental income to help fund your retirement, you may not receive enough to maintain the lifestyle you’re accustomed to. 


  • By age 60 you should have around 8x your annual income saved.
  • There are many factors to consider when determining a retirement savings goal.
  • There are three types of retirement savings accounts: tax now, tax later, and tax never.

How much money should I have saved when I turn 60?

The generally accepted savings guideline for those turning 60 is around eight times their current salary. For example, if you earn $70,000 per year, your goal should be to have between $485,000 and $560,000. 

Of course, this number is different for everyone based on your income, lifestyle, and predicted expenses during retirement. To help you gain a deeper understanding of your future financial needs, you can ask yourself the following questions.

What is the amount of debt you have?

Knowing the current amount of debt you have and how much of it you will bring with you into retirement is an important factor to consider when planning your finances. While there are some forms of debt that you can use as an investment (think houses, cars, etc.,) others like that from credit cards or loans can keep you from enjoying the activities you want to do during retirement. 

Consulting a financial advisor is a great way to determine your total debt and explore debt relief options that can pave the way for a more enjoyable future.

What age will you retire?

The recommended savings amount for age 60 is based on someone retiring at the full retirement age. If you want to retire sooner, you would need to save more, whereas you may be able to get away with less if you plan on working longer. 

Where will you live?

Retirement comes with many questions, like whether or not you plan to stay in your current residence or not. For many, this is the time they choose to downsize, selling their homes for a smaller apartment or condo. 

If this is your goal, you may be able to use the equity from the sale of your home toward your retirement fund, which can give you an added boost if you haven’t quite reached your goal. 

Another aspect to consider is whether you may need to move into an assisted living facility down the line. 

For those with pre-existing health conditions, assisted living is an excellent way to maintain your freedom while having the support of a medical team nearby. 

While beneficial, these types of housing situations are extremely expensive and require out-of-pocket payments, so you can’t rely on insurance to cover the cost. 

Just be sure to consider all the possibilities when deciding on how much money to put aside.

What type of lifestyle would you like?

When you picture your retirement, what do you see? 

Are you spending your time traveling, exploring different hobbies, or supporting causes that are close to your heart? Whatever your idea of an ideal retirement is, you’ll want to ensure you have the funds to cover it. 

Determine Your Future Income

Once you have an idea of how you’d like your retirement to look, it’s time to figure out how to ensure you have the finances to cover it. 

Determining which income sources you’ll have will give you a greater insight into whether you’re on track for a comfortable retirement or if you need to adjust the amount you’re currently saving. Consider these sources to determine your retirement income. 

Life insurance policies with cash values

While life insurance is typically used to cover final expenses, you may be able to use your permanent life insurance plan to receive cash payments. 

If you no longer need the full death benefit protection, you can choose to receive cash value supplement payments as an additional income source. Even better, some of these payments may qualify as tax-free, which can be a valuable asset to your retirement plan.

How much will your Social Security payment be?

Once you turn 62, you become eligible to start claiming your Social Security benefits, but it’s not recommended. Waiting until you’re 66 or 67, depending on the year you were born, will allow you to receive 100% of your benefits. 

However, if you wait until age 70, you could qualify to receive 124% to 132% of your allotted benefits, which may be an excellent option if you haven’t achieved your retirement savings goals. 

For more information and to calculate your estimated benefit compensation, visit

Will you receive a pension?

If you qualify for a pension with your job, you will want to calculate that amount when determining your total retirement income. 

Every pension compensation will vary as they are based on your income and the years worked with your current employer. 

Do you have additional retirement savings plans?

Individual retirement accounts (IRAs) and other savings plans like 457(b)s, 401(k)s, and 403(b)s are excellent ways to increase your retirement income. 

It’s important to plan out when you want to start drawing from these accounts, as many are subject to Required Minimum Distributions (RMDs) depending on your age. The good news is that you can generally begin withdrawing from these sources at 59 1/2 without penalties.

Be sure to consider all tax impacts

One of the biggest impacts on your retirement savings can be taxes. All of your retirement income could be taxable, including your Social Security benefits. 

Income tax diversification is the concept of investing in multiple tax-advantaged accounts in order to minimize the amount of taxes you’ll pay in the future. 

There are three options to consider: tax later, tax now, and tax never.

Tax later – These accounts defer taxation until you withdraw the funds and are better for long-term investments. Common examples include fixed annuities, variable annuities, traditional IRAs, and 401(k)s.

Tax now – With these accounts, you pay the taxes upfront, which is better for short-term or current needs. Examples include mutual funds, savings accounts, and checking accounts.

Tax never – The tax-free asset accounts provide preferential treatment on accumulated values and funds distribution. 

If you haven’t reached your retirement savings goals yet, you’re not alone. 

Over 90% of near-retirees report not feeling prepared financially for the future. 

Fortunately, it’s never too late to grow your savings, and developing a plan for the future is a great way to get started.

At Americor, we understand the importance of managing your finances wisely. 

If high-interest debts are impacting your savings and financial well-being, explore our debt relief solutions, including debt settlement and debt consolidation, to regain control of your financial future.

If your debt has become unmanageable and you have difficulty making your debt payments each month, then you should consider negotiating a debt settlement and an affordable payment plan that suits your budget.

Talk to one of our certified Debt Consultants, for free, who can provide personalized advice tailored to your specific needs.

By taking proactive steps, you can put an end to your financial stress and work towards a brighter financial future. Remember, there is always hope for debt relief, and our team of experienced professionals are ready to guide you on your journey to regaining control of your finances.

For more information on Americor’s debt relief services, contact us today to see how we can help you eliminate your debts, and get on the fast-track to becoming completely debt-free!


Aaron Sarentino

Aaron oversees executive, administrative and management functions for the firm. Aaron has a Bachelors in Business Administration from Pepperdine University. He is responsible for helping customers at every stage of the debt settlement process and focused on building loyalty to ensure long-term client retention by addressing customer issues. Aaron plays a pivotal role in the upliftment of the Americor team to ensure the best possible customer experience for clients.