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At 70, the question isn’t just how much you’ve saved, but how much retirement those savings can support. Households headed by someone aged 65 to 74 have median retirement savings of about $200,000, according to the Federal Reserve’s 2022 Survey of Consumer Finances, while the average of $609,000 is pulled higher by larger balances. Those figures offer a comparison, but your spending, Social Security and other income determine how far your money will go. Here’s how your savings stack up, how net worth fits into the picture and what to consider before retiring at 70.
You may want to work with a financial advisor to make sure your savings goals are in line with where you need to be later on.
How Much Does the Average 70-Year-Old Have in Savings?
According to data from the Federal Reserve’s most recent Survey of Consumer Finances, households headed by someone aged 65 to 74 have an average of $609,230 saved. That’s money that’s specifically set aside in retirement accounts, including 401(k) plans and IRAs.
However, the median retirement savings may offer a more accurate look at what the typical 65- to 74-year-old has, since averages can be skewed by outliers. The median retirement savings for households in this cohort is $200,000.
The Federal Reserve also measures median and mean (average) savings across other types of financial assets. According to the data, households in this age cohort have the following median and average balances:
| Account Type | Median Balance | Average Balance |
|---|---|---|
| Retirement Savings | $200,000 | $609,230 |
| Transaction Accounts (including savings and checking) | $13,400 | $100,250 |
| Certificates of Deposit Accounts | $53,000 | $138,440 |
| Savings Bonds | $10,000 | $39,310 |
| Cash Value Life Insurance | $12,000 | $55,530 |
How Much Should a 70-Year-Old Have in Savings?
There’s no single savings amount that fits every 70-year-old. How much you need depends on your retirement expenses, the income available to cover them and how long your savings may need to last. A useful starting point is to compare your expected spending with income from Social Security, pensions and other sources to estimate how much you’ll need to withdraw from savings.
Several factors can shape that calculation, including:
- Desired retirement lifestyle
- Your monthly Social Security benefits
- Other sources of retirement income, such as a 401(k), IRA, pension or annuity
- Other savings, including taxable brokerage accounts, savings accounts and CDs
- Overall health and life expectancy
- Taxes, inflation and investment returns
The more of your spending Social Security and other income sources cover, the less you’ll typically need to draw from savings. Someone with modest expenses and a pension may need a smaller nest egg than someone who spends more and relies heavily on investment withdrawals.
Your plan should also leave room for expenses that may change over time. Healthcare, long-term care and unexpected home repairs can put pressure on your budget, while inflation can increase everyday costs. Reviewing your spending and withdrawals regularly can help you assess whether your savings are supporting the retirement you want.
What Is a Good Net Worth at 70?
Net worth is a measure of your assets vs. your liabilities. In other words, it’s the difference between what you own and what you owe.
The median and average net worth of households led by someone between 65 and 74 are $410,000 and $1.78 million, respectively, according to the Federal Reserve.
However, what constitutes a good net worth is situation-specific and largely linked to your retirement goals. There are different rules of thumb you can apply to come up with an ideal net worth calculation. For example, one rule suggests having a net worth at 70 that’s equivalent to 20 times your annual expenses.
If you spend $100,000 a year to live in retirement, you should have a net worth of at least $2 million. On the other hand, if you only spend $40,000 on living expenses, then your target net worth would be much lower, at $800,000.
Is Retiring at 70 a Good Idea?
Whether it makes sense to retire at 70 can depend on your finances and what you envision for your dream retirement. When choosing a retirement age, it’s helpful to consider:
- When you’ll need to take Social Security benefits
- Whether you’ll still work in a part-time capacity after retiring
- How long you plan to live in retirement
- Your desired savings goal and current savings rate
If you can delay taking Social Security benefits until age 70, that can boost your benefit amount. You’ll be eligible to collect 132% of your full retirement age benefit amount by waiting longer to apply.
You can also continue saving and investing for retirement if you’re working longer. For example, you can continue maxing out your 401(k) each year, or at the very least, contribute enough to get your full employer match. You can also funnel money into an IRA for supplemental savings.
Retiring at 70 means you’ll have a two-year gap before you’ll need to begin taking required minimum distributions (RMDs) from a traditional 401(k). SECURE 2.0 eliminated the RMD requirement for Roth 401(k)s, while Roth IRAs are also exempt from this rule.
Within that window, you might decide to convert your traditional IRA to a Roth account. Doing so can mean a higher tax bill in the year of the conversion since you’re required to pay taxes on your traditional IRA earnings. But moving forward, you’d be able to take tax-free distributions from your Roth IRA.
How to Budget for Retirement at 70
As you approach retirement at 70, it’s crucial to have a clear understanding of your income sources. Social Security benefits often form the backbone of retirement income, but they may not be sufficient to cover all your expenses. Consider any pensions, annuities or investment portfolios you may have. It’s important to assess how these income streams will work together to support your lifestyle. Consulting with a financial advisor can help you optimize these sources to ensure a steady cash flow throughout your retirement years.
Budgeting for retirement involves a thorough estimation of your future expenses. Start by listing your essential costs, such as housing, healthcare and groceries. Don’t forget to account for discretionary spending, like travel and hobbies, which can add up quickly. It’s also wise to factor in inflation, as the cost of living tends to rise over time. By creating a detailed budget, you can identify any potential shortfalls and make adjustments to your spending habits or savings strategies accordingly.
At 70, your investment strategy should focus on preserving capital while still generating income. This often means shifting from high-risk investments to more stable options, such as bonds or dividend-paying stocks. Diversification remains key to minimizing risk and ensuring a balanced portfolio. Regularly reviewing your investments with a financial advisor can help you make informed decisions that align with your retirement goals and risk tolerance.
Retirement budgeting at 70 often involves balancing Social Security, savings and investment income while planning for healthcare and longevity. Use SmartAsset’s retirement calculator to estimate how your income sources may work together over time.
Bottom Line
Average savings figures can offer perspective, but they don’t tell you whether you’re financially ready to retire at 70. A more useful measure is how well your savings and ongoing income can cover your spending, including room for rising costs and unexpected expenses. Building a budget and reviewing it as your needs change can help you decide when to retire and how to manage the money you’ve accumulated.
Retirement Planning Tips
- Consider talking to a financial advisor about the pros and cons of retiring at 70 and what a timeline for retirement should look like. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Delaying Social Security benefits could help you to collect more money in retirement. Taking benefits early, however, could reduce your monthly payment amount. The earliest you can begin taking Social Security is age 62 but it may benefit you to wait until at least your full retirement age to apply. Also, keep in mind that if you do decide to take Social Security early and you continue to work, your benefit amount may be reduced even further. Understanding how to maximize Social Security benefits can help you get the most money possible.
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