Approaching retirement, many individuals often contemplate whether their accumulated investments will sufficiently support their post-employment lifestyle. For a significant portion of the American populace, a substantial part of these investments resides within tax-advantaged retirement vehicles such as 401(k)s and Individual Retirement Accounts (IRAs). Data indicates that over 80% of individuals in their sixties participate in such plans, while a smaller segment, approximately 35%, also maintain brokerage accounts. This prompts a pertinent question: what is the typical value of a stock portfolio for those in this age bracket?
While only a minority of Americans in their sixties utilize taxable brokerage accounts, those who do often hold considerable assets independent of their employer-sponsored retirement plans. Federal Reserve statistics reveal that for households aged 55-64, the median value of directly held equities is approximately $30,000, and for pooled investment funds outside retirement accounts, it stands around $300,000. For the 65-74 age group, these median figures are approximately $65,000 and $250,000, respectively, indicating that a typical taxable portfolio for older investors often ranges in the low to mid-six figures. Furthermore, industry reports from institutions like Charles Schwab show that self-directed brokerage options within workplace retirement plans held an average of about $362,000 overall in the second quarter of 2025. Baby Boomers, aged 61 to 79 in 2025, exhibited the highest average balances, nearing $599,000, while Generation X investors, whose eldest members recently turned 60, averaged approximately $379,000. These statistics tend to reflect more actively engaged investors, yet they establish a realistic high-end benchmark. For retirement accounts specifically, Vanguard's data shows that for those aged 55-64, the average balance in defined-contribution plans is $271,320, with a median of $95,642. For individuals 65 and older, the average is $299,442, and the median is $95,425. Fidelity's data for IRA balances among Baby Boomers show an average of $257,000 in 2025. Considering these figures, a reasonable estimation for average retirement savings for individuals in their sixties is approximately $500,000 to $550,000, with a median of around $180,000.
To personalize these benchmarks, it's essential to evaluate your own financial preparedness. Experts suggest having savings equivalent to eight times your annual gross income by age 60, gradually increasing to ten times by age 67, adjusting for individual lifestyle and retirement age. It is also important to align your savings with your anticipated retirement income requirements, with a common guideline being 25 times your expected annual retirement spending, implying a 4% withdrawal rate. Regularly assessing your contribution rate is crucial, with recommendations ranging from 15% to 20% of income, including employer contributions. Stock allocation should typically fall between 50% and 60% for individuals in their early sixties, progressively decreasing with age, though this depends on personal risk tolerance, health status, and other income streams. Finally, a comprehensive assessment of all assets, including IRAs, previous 401(k)s, pensions, brokerage and bank accounts, Social Security projections, Health Savings Account (HSA) balances, and home equity, provides a more accurate picture of overall financial readiness.
