Approaching retirement, individuals in their sixties often contemplate whether their accumulated investments will sufficiently fund their post-career lifestyle. For most Americans, a substantial portion of these assets resides within qualified retirement plans, such as 401(k)s and Individual Retirement Accounts (IRAs). Notably, over 80% of individuals in this age bracket utilize retirement plans, yet only about 35% maintain brokerage accounts, suggesting a heavy reliance on traditional retirement vehicles for wealth accumulation.
While a minority of Americans in their 60s engage with taxable brokerage accounts, those who do often possess significant capital beyond their established 401(k)s and IRAs. Federal Reserve data indicates that for households aged 55–64, the median direct stock balance stands at approximately $30,000, while pooled investment funds held outside retirement accounts reach a median of about $300,000. For the 65–74 age group, these medians are around $65,000 and $250,000, respectively. These figures suggest that a typical taxable portfolio for older investors generally falls within the lower to middle six-figure range. Furthermore, Charles Schwab’s latest report on Self-Directed Brokerage Account (SDBA) indicators reveals that self-directed brokerage windows within workplace retirement plans averaged around $362,000 overall in the second quarter of 2025. Baby Boomers, aged 61 to 79 in 2025, exhibited the highest average balances at about $599,000, whereas Gen X investors, whose oldest members are now turning 60, averaged around $379,000. While these statistics may lean towards more active investors, they offer a realistic upper-tier benchmark.
Understanding where your retirement savings stand can also be achieved by examining typical balances in defined-contribution retirement accounts, such as 401(k) plans and IRAs, as reported by institutions like Vanguard. For individuals aged 55-64, the average balance is $271,320, with a median of $95,642. For those 65 and older, the average rises to $299,442, while the median remains similar at $95,425. It's crucial to distinguish between average and median figures; averages can be skewed upwards by a small number of very large accounts, making the median a more representative measure for most Americans. Additionally, Fidelity reports that the average IRA balance for Baby Boomers in 2025 is $257,000. If we apply a similar ratio of median to average as seen in Vanguard’s 401(k) data, a reasonable estimate for average retirement savings for those in their 60s would be $500,000 to $550,000, with a median around $180,000.
Regarding stock allocation, Vanguard’s data indicates that 64% of 401(k) assets for Americans aged 55 to 64 are held in stocks. This percentage decreases to 50% for those 65 and over, a common trend as risk tolerance typically diminishes with age. Assuming approximately 60% of a typical individual’s retirement portfolio in their sixties is allocated to stocks, consistent with many target-date funds for this demographic, this translates to an average stock balance of roughly $300,000 and a median stock balance slightly exceeding $100,000 within retirement accounts.
Although only about a third (36%) of Americans in their sixties hold a brokerage account, and fewer (29%) directly own stocks, the value of these stockholdings is noteworthy. While average figures can be distorted by extremely large accounts (some exceeding $1 billion), excluding the top and bottom 1% offers a more accurate picture. Adjusted for inflation, the median stock value in brokerage accounts for this age group is $535,000.
While benchmarks such as average and median balances offer useful insights, they should not be viewed as a definitive pass/fail criterion. To effectively evaluate your personal financial health, consider key financial ratios, assess your savings against anticipated income needs, examine your contribution rate to ensure it meets expert recommendations, and review your stock allocation in line with your personal risk tolerance and health. Furthermore, a comprehensive evaluation should encompass all assets, including IRAs, previous 401(k)s, pensions, various bank accounts, Social Security estimates, Health Savings Accounts (HSAs), and home equity, rather than focusing solely on current employer-sponsored plans.